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Is It Time to Ban Christmas Presents? - A Taxman's Viewpoint

21st Nov 2012
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In a potentially controversial article in the Daily Telegraph yesterday, Martin Lewis presented a carefully thought through argument against buying Christmas presents for anyone outside the immediate family and possibly a few stray children. Is this right approach for self-respecting accountants?

Mr Lewis came up with a lot of good reasons to stop giving Christmas presents and is likely to find many adherents to his new philosophy. If nothing else, very few Britons these days are practising Christians and therefore Christmas has nothing whatever to do with them other than as a commercial driver.

However, despite the fact that the current writer proudly believes himself to be Scrooge reincarnated, there are some good reasons why gifts could still be appropriate this Yuletide, though not if they send you into debt.

It is always worth remembering that receiving an unexpected gift that you desperately wanted or even better, didn't know that you wanted but are delighted to receive, is a pleasure.

In reality, while receiving a desirable gift is always a pleasure and giving one is fun too, that always ignores the most obvious problem. Seeing someone's face sink despite their best efforts to hide their disappointment at receiving something unwanted is probably mildly worse than trying to cover up your own feelings on getting yet another pair of oversized fluorescent green Lycra socks with pictures of Father Christmas all over them.

It is worth noting that the same applies to ill-fitting clothing, someone else's clearly unwanted present from last year or an item that has obviously been reduced to practically nothing in the local charity shop. Perhaps the gifting nadir though is that home-made something or other the purpose of which you will never discover?

A significant point to remember is that anyone who doesn't want to get involved in the Christmas merry-go-round needs nerve of steel, so success are the marketeers.

Turning Christmas back into a small-scale event for believers is all very well but if the gift industry died it could take the parlous British economy, which is seemingly on its last legs anyway, down with it.

It is no coincidence that more shopping is done during December than in any other month of the year. Many companies that somehow heroically struggle through the summer and autumn would immediately collapse if we all got mean in the bleak midwinter.

That in turn would be very bad news for dear Santa Osborne. Practically every Christmas present brings in 20% by way of VAT and all those additional employees, not to mention the ones that are not losing their jobs are ensuring that the NIC and income tax receipts remain strong.

If they haven't had their employment rights bought out by shares, they will also become a burden on society.

Admittedly, purchases from Amazon in Guernsey or some dodgy company in China that doesn't even send them through do far less to help our economy so perhaps one message is to buy British? In the right circumstances, the Chancellor might even benefit from a bit of air passenger duty.

The accountancy industry is probably not thriving as it ought to and therefore another solution that would be very pleasing is a different kind of giving in 2012.

Surely you must have friends who would be delighted to receive a gift wrapped audit or glittery tax return fully completed by your loving hands? In this way, everybody benefits, your firm and staff, the recipient and the Exchequer. That's a lot better than a VAT free book about Justin Bieber or John Terry.

Perhaps the solution is to follow the corporate moves on Christmas cards in recent years. Agree with your friends and relations that the needy are far better recipients of charity than the wealthy and make some healthy donations to aid the starving in Africa or severely ill in our own country. If you do, then I'm sure that the government will not begrudge its once-in-a-lifetime opportunity to enhance your payment through Gift Aid.

On the basis that neither this article nor Mr Lewis's will stem the tide, over the next few weeks this column will contain a series of suggestions for perfect Christmas presents.

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Replies (7)

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By ShirleyM
21st Nov 2012 09:56

Buy British

I try ... but it's impossible to know what IS British these days. It may say 'Made in Britain', but that may mean it was made in China from Chinese materials and has a label sewn on/stuck on in Britain!

I get really annoyed that I WANT to buy British (wherever possible) but am being hoodwinked into buying foreign merchandise.

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By Rudolf
21st Nov 2012 11:07

I actually love Christmas and enjoy buying presents with care, thinking carefully just what each recipient really wants but would probably never buy for themselves. Having reached “a certain age” I find now that I don’t have so many children to buy for, which is a blessing as I can be more inventive with gifts. For example I wanted to give a gift to a steam train enthusiast so I arranged for him to spend a day with the local steam railway society (whose books we audit every year) learning to drive the steam trains.

I also think Christmas is the perfect opportunity to show staff that they really matter. Why not unexpectedly hand them each £100 Christmas bonus in cash just before lunch and tell them to take the afternoon off to go shopping. It really doesn’t hurt to close the office for an afternoon and an unexpected surprise like that does wonders for morale.

Christmas is not an “expense” as Scrooge would have you believe. It is an opportunity to show others that they matter.  Everyone has a “inner Santa”, it’s just a matter of letting him out.

 

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By User deleted
21st Nov 2012 14:34

Nooooo...

... there is nothing worse than people who think they know what you want!

I write a list through the year, as you get older you get more particular about what you like and don't like. I really would rather have nothing than receive a gift where someone has obviously tried and you have to fix grin and be oh so pleased, knowing you will now get a similar gift every year for eternity, even though you hate it. Better to get a naff jokey present than a near miss.

Books are the worst, as I am nearer the grave than the cradle I know what I like and don't like, just buying a random Sci-Fi book because you saw me reading Dune is no guarantee of success! Same with music, yes,  I like U2, no I loathe with a passion Simple Minds and so on!

Not being an alcoholic booze matters too, but has the advantage it can be passed on to those that are, so Glenfiddich 12yo or even better a Bushmills 21yo go in the drinks cabinet - Teachers, Bells or Grouse go in the larder or the postman!

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By slipknot08
22nd Nov 2012 09:28

solstice gifts

Hi Scrooge

Lots of people - like me - are pagan, and celebrate by decorating (and maybe venerating a bit) a large tree around 21 December and giving pressies to all and sundry... I love choosing the right present for someone and spending time searching out just the right thing, and seeing their face light up when they open it (and tracking father christmas online to see when he's going to pass over our house - did you know you can do that? SO cool).

Just remember, even though the church hijacked our winter festival and arbitrarily called it christmas; just because many people no longer belong to that church doesn't mean they can reserve the festivities unto themselves and make the rest of us give up our celebrations and pressies!!!

Looking forward to seeing your christmas list in the coming weeks ...

8-) (channeling my inner santa)

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Replying to FoxAccountancyServices:
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By Rudolf
22nd Nov 2012 11:05

Link ?

slipknot08 wrote:

 (and tracking father christmas online to see when he's going to pass over our house - did you know you can do that? SO cool).

 

 

 

A link to that would be good if you could supply one. That would really impress the grandchildren. (and keep the little blighters quiet).

 

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Replying to Mike Towle:
By slipknot08
22nd Nov 2012 11:24

tracking santa on his sleigh...

no sooner said than wossname... http://www.noradsanta.org/ - it is loads of fun (and yes, v. good for keeping small persons quiet for ages!!)

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By Rudolf
22nd Nov 2012 11:52

Thanks

Much appreciated.  If it keeps them quiet while I watch the football I'll be well pleased.

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