Amanda Ashworth, 43, packed up her and her partner’s things and settled in Dubai in 2020 with their three children – and now says they are £80,000 better off each year by leaving the UK.

The family divide their time between the UAE, India and the UK, where they home educate their children while running their business.

There was no single tipping point that prompted her family to leave the UK, Amanda said.

Instead, it was years of rising taxes and household bills gradually eroding what had once been a comfortable income.

Before moving abroad, the family were living in Cambridge, where Amanda ran a small ecommerce business while her partner, Mike, worked as an IT consultant.

Together, they earned around £160,000 a year, but Amanda says more and more of it was disappearing through tax and everyday living costs.

She said their monthly outgoings included around £2,000 on housing, £600 on groceries, £500 on utilities and council tax, £400 on education and £300 on transport.

As higher-rate taxpayers, Amanda says they increasingly questioned whether the amount they were keeping reflected how hard they were working.

“The biggest financial reason for moving abroad was that we could retain more of what we earned. In the UAE, there is no personal income tax, whereas our earnings in the UK were taxed at the highest rate.

“We also had an expat package in the UAE that included flights and visas [through Mike’s job]. This made the move considerably more financially viable because two significant costs associated with living internationally were covered.

“We did not move simply because we thought every expense would be cheaper. In the UK, a much larger proportion of our income was being absorbed by tax and household expenses. We have no regrets about moving.”

Amanda now works as a nervous system specialist, coach and founder of Worldschooling Hub Goa.

Although her family’s grocery bill has increased to around £800 a month – £200 more than before – many of their biggest expenses are now covered by the expat package.

Accommodation worth around £1,700 a month, healthcare, insurance, flights and visas are all paid for, while transport costs remain around £300 a month and family activities cost approximately £500.

The family also home educate their three children, avoiding school fees but spending around £10,000 a year on tutors, online classes, books, memberships and educational travel.

Amanda added: “The main financial difference is that we retain more of what we earn and have greater control over how we use it. Much of what we have saved has been reinvested into our businesses rather than held as cash savings.”

Overall, Amanda believes the family’s finances are around £80,000 a year better than they would have been had they stayed in Britain.

‘It’s better for business – and my health’

Simon Ursell, 55, is preparing to leave the Cotswolds for Porto with his wife after selling his environmental consultancy.

The 55-year-old, who built his firm to have over 150 employees, is now launching an employee wellbeing platform, Zella, from Portugal.

The father-of-two, whose sons will remain in the UK, said: “I’m now able to live and work from anywhere. But we started to really consider relocating long before then.

“We were spending time in the city [Porto] and recognised that would be the perfect place to start up and scale.”

After more than three decades building businesses in the UK, Simon never expected his next venture would begin overseas.

While Simon says his decision was not driven purely by tax, he added the UK’s business environment has become increasingly difficult for founders trying to grow companies.

He added: “[Britain] has given me brilliant opportunities to start up and scale several businesses – I set up my first when I was just 23, and they’ve all been very successful. However, when I was preparing to launch Zella, I no longer believed that it’s the best place to build it.”

Instead, he believes rising employment costs, growing regulation and economic uncertainty are making entrepreneurs think twice.

In particular, the increase in employers’ national insurance contributions, alongside the prospect of further regulatory changes, has added to the uncertainty facing businesses and entrepreneurs considering where to build and scale.

Simon said: “The best business leaders want to create good jobs, to invest in their people and build healthy workplace cultures.

“Yet many are finding themselves spending more time, and money, managing compliance, and on administration and financial pressure than focusing on business growth and innovation.”

Although he says Portugal’s corporate tax rate is broadly comparable with the UK’s for smaller businesses – 15 per cent on the first €50,000 of taxable income in Portugal, compared with 19 per cent on profits up to £50,000 in the UK – he believes the day-to-day costs of building a company are significantly lower.

He points to lower office costs, more competitive salaries and practical support for entrepreneurs.

For Simon, the move is also about lifestyle. After suffering burnout and a stress-related brain haemorrhage while building Tyler Grange, his consultancy, he says wellbeing has become a central part of both his business philosophy and personal life.

He said: “We want to spend more time outdoors and enjoy a more active life, which is made possible by the sunshine and semi-Mediterranean climate in Porto.

“Another real bonus for is that where we will be living in Portugal, public transport for tax paying residents, like me, is free.

“I can walk or cycle everywhere – from my house to pretty much all things I need, including an office.”

He sees it as a permanent move, and he is looking into getting a Portuguese passport. Whilst he would “never say never”, he does not think a return to the UK is likely.