UK startups are facing growing uncertainty around how to plan for doing business in Europe in the months ahead. While there are no foregone conclusions ahead of the general election, what is clear is that businesses with limited resources and big ambitions are going to face a testing period.

Uncertainty may lead to poor tactical decision making, lost or delayed market opportunities and funding, and in many cases unplanned spending. My cofounder and I meet a number of candidates for positions at our seed stage fintech business. Some of these candidates are EU passport holders, which immediately sets a question in motion about what happens if we extend an offer now. Does this mean additional legal costs in the wake of a potential Brexit after the general election?

Last month, the Institute of Directors asked the Tories and Labour to support early-stage businesses and resolve questions around access to the European Investment Fund (EIF), which committed committed over £2bn to UK-based venture capital funds between 2011 and 2015.

I believe the next government also needs to introduce the possibility of Brexit tax credit for startups not dissimilar to the R&D tax credit that is currently in place. The government has the tools to ensure that no matter what the outcome is, it takes the steps to keep this country attractive for entrepreneurs and investors alike.

Today, the startup ecosystem in the UK lacks clarity on what to budget for when it comes to European expansion plans for early stage businesses and how to deal with retaining and growing talent that is European and working in London.

I’ve prepared the following laundry list for what a business similar to ours in the financial technology sector may want to budget for should Brexit take place:

1. Company formation/set-up charges in a EU country, including advice from a law firm.

2. Legal regulatory study and applications.

3. Offshore compliance costs.

4. Potential cost of hiring a local European employee in-country.

5. Travel costs to work with/meet local regulators.

6. Legal costs for changes to EU contracts.

7. Visa costs for European employees working in the UK.

8. Forex (foreign exchange) costs.

With a Brexit tax credit, startups could set out the additional costs of doing business due to the impact of Brexit and submit them to HMRC to get up to 40% of the costs refunded by the government. This would provide much-needed respite for the companies the government is so quick to showcase to the rest of the world and ensure that we continue to put forward cutting-edge policy and tax incentives for our entrepreneurs.

While countries such as Germany and Portugal are actively welcoming UK startups, this country is looking increasingly unattractive to the next generation. Some nations, including Chile, are even offering to invest in startups (through programmes like Start-Up Chile) to attract talent to their shores.

Lack of access to the right talent for the UK clearly jeopardises the growth of the digital economy. Tech investment in the UK reached £6.8bn in 2016, more than two times higher than any other European country, according to the 2017 Tech Nations report by TechCityUK.

The UK must remain at the forefront of the war for talent and a Brexit credit would show that the government is nimble and forward thinking enough to compete. There would be a goodwill dividend from startups already here across the country and it would demonstrate that we are still open for business.

Farid Haque is the co-founder of AssetVault

Sign up to become a member of the Guardian Small Business Network here for more advice, insight and best practice direct to your inbox.