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The Budget buzz is building…

15th Mar 2012
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AccountingWEB editor John Stokdyk presents an insight into the forward planning that takes place at this time of year.

Ahh, springtime! The bulbs are blooming, the Cheltenham festival is in full swing - and pundits are cranking out megabytes of predictions, position papers and wishlists ahead of the Budget statement next Wednesday, 21 March.

For die-hard enthusiasts, we have been attempting to catalogue the main themes in our Budget discussion group as a sort of live, online notebook. Our blog page is becoming a little more lively, too, with Philip Fisher and Richard Murphy sounding off about the tax gap and top income tax rate from their different perspectives.

But to be honest, the Coalition government has taken some of the thrill out of the traditional Budget chase. Many of the draft clauses for the 2012 Finance Bill were published in December, which means that we’re likely to see a few theatrical shimmies and slights of hand from the Chancellor next Wednesday, but little in the way of the substantive tax measures.

Instead, we will probably all be hunkering down to spend endless hours next week poring over the first draft of the Finance Act 2013, in the shape of consultation documents and responses setting out possibilities for a general anti-avoidance rule (GAAR), HMRC’s new agent strategy, insolvency reform and, perhaps, plans for more PAYE reform.

We may well hear more about the company accounting reforms being pushed in Europe, and perhaps some suggestions for company law reform, without committing too much detail to print. Fuller consultations documents on those topics are pencilled in for July.

Rebecca Benneyworth will in harness for quick technical summary on Wednesday and will fill us in on nitty gritty on succeeding days. Thanks to this year’s Budget sponsor Sage, she will also compile a detailed technical guide to the main issues for small businesses that will be available on Monday 26 March. In addition, if you submit your details here, we’ll enter you in the Sage Budget prize draw for an iPad 3.

We’ll also be tinkering with our usual email bulletin schedule to accommodate the Budget. Instead of sending our usual Pick of the Week mailing to most members on Wednesday, we’ll send it out on Thursday morning instead with the traditional Budget-at-a-glance overview. Those members who receive our regular Thursday Business bulletin will get one on Wednesday instead.

After surviving something like 15 Budgets doing this, I can’t quite say the week ahead excites me, but there are always intriguing twists and turns when the worlds of tax, accountancy and politics collide.

Come along with us for the ride over the next 12 days or so - and make sure you take advantage of the opportunity AccountingWEB provides to be your own Budget pundit. Much as we love them, we’re getting a little bored of John Whiting, Francesca Lagerberg and Mike Warburton and are keen to hear what you think of the Chancellor’s policies.

AccountingWEB Budget 2012 resources - sponsored by Sage:

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Rebecca Benneyworth profile image
By Rebecca Benneyworth
16th Mar 2012 12:44

Not excited John??

Oh dear, I'm like a kid ready and packed a week before my holidays!!

I've got everything ready - checked printer toner supplies, paper, highlight pens etc. Got standby arrangements for downloading in case the internet goes down here. Got some high energy bars and lots of juice in the cupboard. Hotel booked for Wednesday night - and train. Checked I have internet in the room. New suit laid out.... always good to look your best when you've only slept for an hour or so!

Only one lecture to do before Wednesday and I'm all ready to go now. Soooo excited!

Here's my Budget schedule : Wenesday morning - an hour in the gym to prepare(!)

Watch Budget speech, highlight issues on A/web chat screens & comment/tweet.

Weds afternoon. Wrtiting commentary for a/web and others. plough through press pack looking for less obvious details. Often get a call from HMRC to see if I want to clarify anything, and highlight their key issues. Send copy to John as it is ready.

Weds evening: booked train to London - writing en route

Weds night : working in hotel most of the night - usually touch base with Fran at some point and have a laugh about some aspect of the announcements.

Thurs morning (v early): complete my PowerPoint presentation for Budget Breakfast and head off to Chartered Accountants Hall for 7am. Skip fry up - opt for coffee and juice! Wind up about 10.30. Off to Sutton - Tax Adviser press day (what timing!!). Sign off copy for printing. 5pm Off to Cambridge for LSCA conference (until Saturday). Start putting lecture notes together on the train.

Thursday night: Overnight - put finishing touches to detailed notes for 2 x 1 hour lectures in Cambridge on the Budget. Supply PDF to printers.

Friday & Saturday : Present sessions and catch up with old friends. Home Saturday afternoon. (Ann Summers party at my house - thanks big daughter for that!)

Sunday: working all day with Mark from PracticeWeb on updating content. Evening : put finishing touches to summary for Sage and email it off.

Monday - back to normal with a lecture on payroll at 9.30!

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By User deleted
19th Mar 2012 08:10

Clear the National Debt in one fell swoop ...

What is to stop the Government simply transferring all Pension Fund Assets to the state?

They have just sequestered the Post Office Pension Fund Assets, ensuring a £28 billion windfall. Of course it covers the existing pension short fall and makes the PO easier to sell but should the state take this approach and what happens if they expand their horizons?

It is widely acknowledged that the Governments future pension liabilities are presently unsustainable, so how will taking on an extra 300,000 PO workers liabilities be underwritten?

Furthermore, when the whole area of state support was originally setup many years ago the ratio of workers to claimants was 22:1 - unfortunately within the next 10 years it will be down to 2:1; an unsustainable burden on the working population and no-one has suggested a solution except adopting the ostrich syndrome.

Nevertheless, now that a precedent has been set in the form of the PO swapping REAL assets for future IOU's, what is to stop the Government taking this further. After all I am sure Goldman Sachs (that well known financial virus) could be interested in some 'wheeze' to swap assets for debt (aka. Greece European entry) and take a handsome cut along the way

Now if the Government wanted to clear the National Debt in one fell swoop why not sequester all Pension Fund Assets in the UK. This would have no effect on the public sector because their pensions are NOT ASSET BACKED and anyway they have unions to ensure everyone else is ransomed for the cause, however, every other Pension Fund in the country would be put at risk

Ignore the fact that it would only be a temporary fix and catch up with us later, but by then the architects would no longer be in government and living comfortably on their own state pensions. But it would clear the decks (not affect politicians pensions) and allow the UK to start with a clean sheet.

Think this is fantasy - then look at the references, it has been done before

So the question is - do you trust any Government to look after you best interests?

References

http://www.newser.com/story/108835/hungary-bulgaria-poland-grab-private-pensions-to-fix-budgets.html

http://online.wsj.com/article/SB122471757680560465.html

 

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By ShirleyM
19th Mar 2012 09:18

Simple question ... simple answer ...

So the question is - do you trust any Government to look after you best interests? 

No! I get ratty with people who make out one party is brilliant and will help the country, blah, blah, blah. Politicians want to stay in power, and if it means helping the people who vote for them then they may manage to do that, but help anyone else .... forget it!!!!! That will only happen if the majority of the voting public rise up and threaten to boot them!

I think this coalition is the 'best' we have had in a long while, purely because they temper each others extremes, and because it is a coalition one party is all too ready to tell the public what the other party is planning ... if they don't agree with it. It doesn't make the situation any better (because corruption and unfair play is the norm these days), but it does make it more difficult for the governing parties to conceal things.

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