UK Rich Lose More than The Poor
Posted: 11/08/2010 Filed under: Investment, Moving to London, UK Company Set Up, VAT, VAT Registration | Tags: business concerns, corporation tax, Small Business, VAT Leave a comment »In latest polls, it has come to light that the recession is costing the wealthiest house holds more than that of less ‘well off’ ones. This is something that should please most people as it is a favorite hobby horse of many that conservative governments take money out of the pockets of the poorer members of society. It seems this time they are taking money from everyone’s pockets with rises in VAT and such like.
Which is, of course, as it should be.
The ‘best off’ group, usually headed by someone aged between 55 and 74, with a degree, have took a blow recently losing £25,000 of their total wealth between 2007 and the autumn of 2009.
Whereas the less well off house holds, headed by people under the age of 35 with no qualifications, have felt a smaller blow of just £2,000, during the same period. Of course it does need to be pointed out that it is all relative and the percentage of income earned is probably the relevant figure here.
Clearly the lower earning households felt less of a blow when it came to the recession due to the fact they had less wealth to begin with. It is also being said that the fact that they had stored their assets in more stable places such as banks and building societies (we are talking comparatively here). As opposed to the wealthier households who invest their wealth in places with more uncertain stability such as the stock market.
This study was held by the Institute of Fiscal Studies, or the IFS and commissioned by the Department for Work and Pensions. The study was held to aid research into how households lack of confidence could shake the already fragile economy, not aid its recovery.
There is no doubt, however, that as focused as we may be on pulling the UK up by its bootstraps we must never lose sight of the fact that we are all in it together. Any society that neglects its more vulnerable members risks losing something much more valuable than cash. It risks losing its humanity.
OK I will jump off my soapbox now.
Socially Responsible Immigration Into the UK?
Posted: 03/08/2010 Filed under: Moving to London, UK Immigration | Tags: Immigration, moving to the UK, moving to UK Leave a comment »In recent news there has been yet more talks on the immigration limit that the Government is now setting on Britain.
I think I back the government’s present approach. They have decided to take control, assuring us that they recognise the importance of immigration but also the strain it could put on society if left untended. I believe people do worry about this sort of thing and their re assurances are welcome. I am not so sure, however that arbitrary limitations are the way forward.
The temporary limit the Coalition has set in place will become permanent next year and will be set every year, in accordance to the needs of businesses and the wider population.
The limit we have set between now and the end of March next year is 24,100. This is 1,300 less than the number of those who came into the UK for the same time period last year.
I believe that many immigrants have enriched British society and created opportunity for all British people, in regards to the rest of the world. The economic immigration brings economic benefits and cultural diversity to the UK. This will never change.
However, the Government believes that creating this socially responsible immigration policy will restore the public confidence in the system. That it will create both good race and community relations and for the orderly provision of public services. We will see how that works out in practice.
The coalition would like to create an effective, well controlled immigration system.
I have seen that many immigrants are attracted to Britain, especially around the London area, showing the strength of our capital city and the fact we get an influx of the brightest and best, will only make us stronger as a nation
Broadly Good News For British Economy
Posted: 22/07/2010 Filed under: Investment, Moving to London, Small Business | Tags: moving to the UK, Small Business Leave a comment »Maybe I am just a glass half full kind of guy but I see a lot to be positive about in the latest figures concerning the economy.
The Office for National Statistics have disclosed new information that the Consumer Price Index rate of inflation has dropped from 3.4pc in May to 3.2pc.
Although, to the nation this drop is a positive sign, the drop failed to meet its economists target of 3.1pc.
Inflation has been stubborn to move and the CPI has now been above 3pc for the last seven consecutive months. It now means that unless it falls below 3pc in July Mervyn King, Bank of England Governor, will have to write another letter to Chancellor explaining why targets are not being met.
However, in other areas of the economy, there is showing promise. Sterling jumped as the prospective rate rise came closer. The pound bounced back after an earlier slide, up from 0.96 cents to 1.5170.
The stock market is not showing concern about higher borrowing costs which are set to rise for a sixth consecutive time, by 2pc to 5271.02, due to the growing optimism about the UK’s banking stability.
The Consumer Price Index rate has continued to fall since its 17 month high of 3.7pc back in April. This event caused Vicky Redwood of Capital Economics to state “The further fall in headline inflation in June suggests that there is still little pressing need for an interest rate rise. But with core price pressures remaining stubborn, inflation nerves will remain for a while yet.”
I agree that caution will remain for a while within the British economy but with the correct treatment, we should continue to see inflation drop and the economy pick itself up once more.
2010 remains a consistent year for small business in the UK.
Posted: 15/07/2010 Filed under: Investment, Moving to London, UK Investment | Tags: business concerns, Small Business, uk investments Leave a comment »Data has been released from the British Banking Association that the total value for around 10,000 new term loans to small businesses in the May was £523 million. This, apparently, is a drop from May 2009 where this figure was around £600 million.
Banks who have been releasing loans in accordance with BBA’s statistics are The Co-operative Bank, Santander UK (including Alliance & Leicester), Barclays, Clydesdale (including Yorkshire Bank), HSBC, Lloyds Banking Group (including HBOS) and Royal Bank of Scotland (including NatWest).
On average, the new loan is approximately £50,000 and usually more than ten years duration, with varied interest rates.
Small business loans hold a large chunk of the banking industry, with total term lending standing at £46 billion and this is supplemented by over £8 billion of over draft borrowing.
All of these facts and figures may show a small loss in the small business economy but as the British Banking Director Dooks said “New term lending to small businesses is stable and continuing at more than £500m a month.”
Dooks also went on to say “Higher repayments from businesses looking to contain their operating costs are countering new lending, so negative net changes in the banks’ lending portfolio are a consequence. Until an improvement in economic trading conditions looks more certain, small businesses’ borrowing will remain subdued.”
I believe the Director has a valid point, there is an encouraging stability in the British small business market; the figures speak for themselves.
Entrepreneurs Want Stimulation For Small Business
Posted: 23/06/2010 Filed under: Moving to London, Small Business, UK Company Set Up | Tags: business concerns, Small Business Leave a comment »I have always said that Britain is a great place for the establishment of a small business. At most times in our history we have fostered a winning entrepreneurial mans set and it has really worked for us as a nation. I am hoping that this idea of Britain as a place to start up a company and enjoy huge success continues. And I am not the only one who has these hopes.
Leading entrepreneurs in Britain have come out this week ahead of the emergency budget to call for the continuance of policies that will allow people to start and grow businesses on our shores. In this way tax receipts will be increased for the good of the nation as a whole.
Keith Curran, a serial entrepreneur who has had great success with setting up companies that make money in Britain had this to say on the topic. “It does not just have to be about massive cuts. What about increasing the top line? I really want to see some change,” He is referring to the fact that the government (and to be fair both parties seemed fairly set on this idea) is determined to cut spending and increase taxation to bring in more funds rather than increasing the stimulation for the public sector.
I am not a doom monger as those of you who are familiar with my blog are aware, so I am going to be an optimist and predict that there will be government policies aimed at growing the public sector.
Income taxation Abolished For Low Earners
Posted: 22/06/2010 Filed under: Moving to London, Non Dom, Small Business, UK Taxation | Tags: corporate tax, corporation tax, Tax, Taxation, UK tax, VAT Leave a comment »I thought I would outline some of the things we are expecting from Mr Osbourne’s budget tomorrow so we can evaluate how close our expectations are. Mainly it is about taxation and spending cuts but which taxation and where is the axe likely to fall?
The first thing that jumps out at me from the predictions is the idea that George will be abolishing income taxation for the UK’s lowest earners. I must admit that this has always made sense to me. It seems a convoluted way to do thing giving people money with one hand i.e. child support and other benefits and then taking it away with the other. By all means if people are struggling to get their heads above the poverty line then let them keep the money they work for.
To go along with his tax exemption for low earners the chancellor is also likely to announce a number of money-raising measures, including an increase in capital gains tax, a levy on bank profits, and rises in alcohol and cigarette duties. There is also likely to be a change in aviation tax.
It is interesting about the aviation tax but a rise in taxation on cigarettes and alcohol is to be expected, have we ever had a budget that did not include this move?
Anyway we have not got much longer to wait. Tomorrow will give us all the answers.
Non Dom Charge A Flea Bite
Posted: 18/06/2010 Filed under: Moving to London, Non Dom | Tags: business concerns, moving to UK, Non Dom, non dom tax Leave a comment »Despite the fact that the new non dom tax has now raised 1.3 million in its first year, the Lib Dems are still not describing it in very flattering terms. In fact they have called it a flea bite.
Introduced by the previous labour government the non dom payment which directs non doms to pay a flat rate of thirty thousand each year was originally predicted to raise 650 million a year for the country. The 130 it has bought in is certainly a far cry from that kind of sum.
People who have been resident in the UK but are non domiciled for taxation reasons are liable to pay the fee or they can choose to be taxed in the normal fashion.
Part of the reason the collected figure is so much lower than expected is that we now have fewer non doms. As some people pointed out would happen many non doms have left the country taking their cash with them and many more have been deterred from coming. I think i remember some pretty prominent people predicting that this is exactly what would happen.
Andrew Rodger, executive director of Stonehage, says: “This piece of evidence seems to suggest that less tax is being generated than anticipated by the 2008 changes but we are nonetheless losing tax revenue as a result of the changes.”
Ah, I don’t think that is quite what the xenophobes had in mind.
Cut Immigration: Slow Growth
Posted: 15/06/2010 Filed under: Moving to London, UK Immigration, Uncategorized | Tags: business concerns, Moving to London, moving to the UK, Non Dom Leave a comment »In an interesting story on immigration this week the Office For Budget Responsibility has come out and stated that cuts to immigration now will result in a slow down in economic growth as soon as 2014.
It is great when people actually start talking the real truth about immigration instead of all the xenophobic nonsense that it sometimes feels like the press are force feeding us. The OBR reasons that in a society where the population is ageing immigration is not just to be tolerated but is in fact a necessity.
The OBR was formed in May 2010 to give an independent and informed opinion of budget and public finances. They have nothing to gain by stating that drastic cuts to immigration would be a dire mistake, it is just the unvarnished truth. How refreshing.
Immigration into the UK has dropped from a height of 233 000 to 50 000 in recent times. The OBR argue that this combined with low British birth rates will have a huge and profound effect on the UK economy, weaken the pound and result in high unemployment.
Rather than the paradise some newspapers would have us believe Britain would be without immigration this does not sound like much fun at all. Fancy that!
CBI: UK Will Still Avoid Double Dip Recession
Posted: 14/06/2010 Filed under: Moving to London, UK Company Set Up, UK Taxation, Uncategorized, VAT | Tags: business, business concerns, corporate tax, corporation tax, recession, recovery, UK tax, VAT Leave a comment »Despite the dire talk coning from a lot of economic pundits and the way the government are talking up the ‘mess’ they have inherited, the CBI says Britain will still avoid a double dip recession. I think people understimate how important this is. Even with tax hikes in VAT and CGT predicted, the avoidance of the double dip specter is a huge plus.
I have a lot of customers who are involved in small business and other industries that rely directly on a healthy economy for their livelihood. I know we all do in some sense but for most of us it is a little more second hand. The news that a double dip is highly unlikely has small business celebrating.
The CBI, one of England’s most respected business organisations, also said that they expected the British economy to continue to grow this year, fuelled by the private sector.
They did have a warning for the new government though. They pointed out quite strongly that any over zealousness in the attempts to cut public spending would slow down the economic recovery. They acknowledge that borrowing needs to be brought under control but huge swathes of cuts was likely to be counterproductive.
I am not sure that the government is in any frame of mind to listen to these warnings.
Bankers Bonus Fest To Avoid Tax
Posted: 22/05/2010 Filed under: Moving to London, UK Taxation, Uncategorized | Tags: corporate tax, corporation tax, Taxation Leave a comment »Bankers are not the flavour of the year in the UK and the latest article, published this week in the Times this week is hardly likely to improve their image. There are strong rumours that a clamp down on the city will be a major part of the emergency budget due to be bought down before the 24th of July. It is expected that some taxation changes will heavily effect the banking sector. Apparently bankers are all set to dodge this with a cunning plan.
According to the article in the Times city investment bankers are working on plans to guarantee themselves billions of pounds in bonuses over the next few weeks. The idea is that they will reap these bonuses before whatever taxation changes come in and reduce their bounty.
As i have said over and over agin on this blog. We all have to pay taxation here in the UK and it is part of what make this such a great country to live in. I ma not sure how thrilled i am with these guys finding more ways to avoid fair UK taxation but I guess we will have to wait and see what comes out in the wash.
If you are having trouble with your UK taxation then please do get in contact. Here at St Matthew’s eAccounting we are the experts on UK taxation.
