Inflation On the Rise
Posted: 20/05/2010 Filed under: Small Business, UK election, UK Investment, Uncategorized Leave a comment »As we all hold our breath, the new government is struggling to establish itself and put together a comprehensive plan to run the country. I think it is inevitable that the stories the press choose to run with are at the more miserable end of the spectrum. The simple fact is doom and gloom sells more papers than good news.
So the main story the business sector of the nationals is focusing on at the moment is the rise of inflation. We have hit a high in inflation, the highest inflation rate in 17 years and this is making everyone twitchy. No economy likes high inflation; it always brings forward mention of the disastrous Weimar republic period in Germany where people were bring barrows of cash to do their shopping.
I don’t think things are that dire here yet and it is fairly safe to say that there are no indications they will be. In fact people have been using the Weimar republic as a salutary story for nearly a hundred years for a reason, the scale of that inflationary disaster has not been repeated in nearly a century.
I will, like every business person, be keeping my eye on how things progress with the issue but I must admit, so far I am willing to give the new government time to settle in before I start pushing any panic buttons.
How Will New Government Affect Property Investors
Posted: 14/05/2010 Filed under: Investment, UK Company Set Up, UK election, UK Investment, Uncategorized | Tags: investments, recovery, Small Business Leave a comment »The rumour is so strong that George Osborne is going to hike up capital gains tax in his emergency budget that i am not even sure it qualifies as a rumour. It is fairly certain that the property sector in the UK is going to rasie CGT from 18% to a whopping 40% or maybe even 50%. That is going to have huge ramifications for small business men who earn their living in property. But contrary to what you may think it is not all bad news for property investors.
Granted this is news that will have some property investors gasping for air. So much so that it may well lead to a lot of people getting rid of their properties. This is likely to send prices plummeting. But here is, no cloud without a silver lining. Those people who make their living through renting property and are lucky enough to be able to finance it will be very excited by this news. They will be able to snap up property at a very low price and then rent it and sit back and wait to see what happens. With most landlords keeping their properties for an average of 12 years, todays policies on CGT are of little consequence.
It may be a very a good time to be a property investor in the UK.
Election 2010: What Was That All About?
Posted: 09/05/2010 Filed under: UK election, UK Immigration, Uncategorized, VAT | Tags: business, business concerns, UK election, UK tax, VAT Leave a comment »Wow, I like most of the country was completely speechless by close of play on Friday night. What on earth just happened? The actual result of the UK election, even though we are two days out from it is still unsure. It is not often that has happened in recent times in the UK and it makes it tricky to talk in any meaningful way about what the result will be for issues close to our heart such as The UK economy and immigration into the UK. VAT and its predicted increases are still a complete mystery.
So are there any general conclusions we can draw from where we are now?
It is true to say that the confusion is not good for the UK economy, things are likely to worsen if some decision is not made soon. That is not something that can be allowed to happen. It seems to me that both the Lib Dems and the Labour party lost ground so do we take the chance of having a Labour government propped by the Lib Dems? It could be construed as losers backing up losers.
I am not partisan in these thing at all, I am a totally swinging voter but I cannot help thinking that if Tory did not actually win the election they lost it least.
In the meantime we will all wait with bated breath for the powers that be to make a decision. Let’s hope they get on with it quickly, as far as the international financial market is concerned either party in government is better than no government at all.
VAT is The Gorilla in the Room in Election
Posted: 04/05/2010 Filed under: UK election, UK Investment, UK Taxation, Uncategorized, VAT, VAT Registration | Tags: business concerns, corporate tax, Taxation, uk companies, UK tax, VAT Leave a comment »Sorry to be like everybody else and keep banging on about the election but if you are interested in the financial structure of the UK it is pretty hard to ignore at the moment. On the bright side it is nearly over and we can start talking about something else very shortly, but for now… There was an interesting article in the guardian this week regarding VAT and its place in the election.
The article was quoting the holy grail of think tanks the Institute for Fiscal Studies. In very diplomatic and polite terms the IFS made a statement this week that basically said that the parties were telling us fibs or at the very least putting a gloss on the truth. According to them we are facing four years of austerity and tax cuts under either party. Each will raise taxes and make cuts to pull Britain out of the deficit mire just the ration will change.
The Tories will have a ratio of 4 to in favour of cuts over taxes, Labour will do it at a ratio of 2 to 1 and the Lib Dems will fall somewhere in between. And no matter which party you elect Vat will rise.
Personally, and it may sound odd, I am not terribly concerned about any of this. Let’s do what is necessary to get our economy back on track.
Hung Parliament Will Bring Out the Gamblers
Posted: 02/05/2010 Filed under: Small Business, UK election, UK Investment, Uncategorized | Tags: business, business concerns, gambling, Small Business, Taxation Leave a comment »There is much speculation about the effects on the UK economy and UK business that a hung parliament would bring. In many ways a hung parliament can be seen to be a good thing. It is possible that the Lib Dems looking over the shoulder of one of the major parties would give us an experienced government with a conscience. But in terms of UK business it is possible that the way it is viewed internationally would result in it being a negative.
Many are predicting a plummet in the pound sterling if the day after election day sees us with a hung parliament. This is a possible real problem for the economy but even where there is bad news there are speculators and gamblers waiting to make a buck. Many millions of pounds could be won or lost on Friday morning as the markets open early for the first time and traders start gambling on the possibility of the plummeting pound.
I wonder if the big bookies such as Ladbrokes will be allowing the average punter to speculate on the chances of a falling pound. Given what we know about bookies and the English fondness for a good gamble it seems highly probable.
I have been harbouring a quiet fondness for the idea of a hung parliament but it seems that in terms of UK finances it may be a situation best avoided.
Breath Of Fresh Air On Immigration in The UK
Posted: 21/04/2010 Filed under: Moving to London, UK Company Set Up, UK election, UK Immigration | Tags: business, business concerns, Immigration, Moving to London, moving to the UK, moving to UK, uk investments Leave a comment »If you have been following the UK election in any way then you will be aware that there is talk of a hung parliament. Leaving aside for a moment how this will affect the world’s perception of Britain, there other interesting implications. One is the amount of power a hung parliament will hand to Nick Clegg and his Lib Dem party. I have been looking more closely at this party lately given their possible influence over Britain in the near future and one of the things I like the most about them is their attitude to immigration into the UK.
Nick Clegg recently suggested an amnesty on foreign workers who are already earning a living in the UK. Why not I say? We have amnesties on truly dangerous things such as guns and things that are actually costing the country money such as tax evasion, so why not one for people who are working hard and actually contributing to our economy?
As a aside it is interesting to me that some of the paper in this country have chosen to see this suggested amnesty as being weak on immigration. This astounds me. Surely even those with an issue with immigration can see that the most productive members of our foreign communities should be the ones being encouraged to stay? I suspect that most of the public does see it this way but then that would not sell papers so the media have chosen a different spin.
If you are considering moving to Britain to be a productive member of our great country or even just investing in our fast recovering economy then please give us a ring here at St Matthew’s eAccounting we would love to help you with your plans.
Income tax To Remain At 20 Pence
Posted: 15/04/2010 Filed under: UK election, UK Taxation, VAT, VAT Registration | Tags: business, business concerns, corporate tax, corporation tax, Tax, tax refunds, Taxation Leave a comment »Income tax is another one of those emotive issues that seem to crop up every single election. The thing that astounds me is that politicians are silly enough to think that a promise to keep basic income tax down will be a sure fire winner with their constituents. I am sure their are those among us that are obsessed with this issue, just are their are those that will grumble endlessly when the publican in my local puts up the price of a pint by a penny. But that fact is that most of us are aware of the need for taxation, understand that occasionally it needs to be increased and think their are more pressing issues.
Having stood firmly on my soapbox and said all that I have to add that I think that Mr Brown’s decision to promise to keep the lowest rate of tax steady at 20 pence in the pound is a good one. Figures prove that the lower income earners of your society pay out far more of their income proportionally than anyone else. I tend to think that taxing them anymore would be counter productive.
As to whether the policy will help in way to get the labour party elected, I have my doubts. It is a sad fact that the lowest income earners this is directed at are the least likely of any one to come out to vote.
If you are concerned in anyway about income tax or VAT or corporate tax then please do get in contact. We deal with taxation issues every day and would love to help you out.
UK Election May 6th – Let The Games Begin
Posted: 06/04/2010 Filed under: UK election, UK Immigration | Tags: business, business concerns, moving to the UK, moving to UK, recovery, UK economy, UK election Leave a comment »For anyone who has the slightest interest in how the UK will fare over the next few years, and I certainly have more than a slight interest, then today marks the start of a very important month. Today Gordon Brown went to the Queen and asked her for the dissolution of parliament and then he stood on the steps of Number Ten and announced that the most eagerly anticipated UK election in many years will be held on May the 6th. Whether you are a UK business person or you work for the private sector a lot is going to be said in the next month that will affect your fortunes.
Even the rest of the world will form a group of interested observers over the next month as the parties set out for us their policies on everything ranging from UK immigration to UK taxation and many things in between. if you are considering a move to the UK then the next few months may sway your decision. If you are interested in setting up a UK company then this month is likely to help you choose which type.
The best thing about any election in my opinion is the wealth of information that becomes available about all of the things that are important in mine and my clients lives. It is a great time to explore the big issues and form opinions. I will be watching very closely and reporting anything that I think affects my clients and those in similar positions, as this election is almost certain to focus on the UK economy that is likely to be quite a lot. It is going to be an interesting month indeed.
