I knew this was going to happen to some, but I must admit I have been astounded at how much taxable profits have been made by some clients due to the various grants, in some cases clients have made 3 times their normal annual profits, by far the biggest winnners being those with a business premises with very low costs.
Of course there are plenty at the opposite end of the scale, surely at some point there has to be a proper enquiry into all this.
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My biggest loser is a commercial landlord (retired dentist) who has had to halve or even forgo rents for his tenants who [said they] could not afford to pay. No grants available for him.
That is where we are, whilst last year and early this year during the pandemic we mainly agreed rent deferrals with those of our tenants who needed them we are now, on a case by case basis, starting to write off some of these.
It is not the really small tenants where the write offs look like they will be needed, most of the really small managed, after a stutter up to June 2020, to get themselves back on track paying rent, HMG support indirectly flowing to us, it seems it is the slightly bigger tenants , especially if they effectively could not trade, who are now seeking forgiveness.
I budget that when the dust finally settles we will have foregone circa £100k-£150k in waived rents/voids/extra costs arising from Covid, it could have been worse, without government support to our tenants it could readily have been more like £400k-£800k.
Direct support to us was zero, furlough was not an option, I have worked harder over the last 15 months than ever before, no days off, 5-7 day week rather than normal 3 etc.
The other issue that is not going to go away is going to be soft markets for certain commercial property assets going forward, there is going to need to be a lot of flexibility and thinking outside the box to keep our portfolios full.
Keeping the sheep compliant with free lunches before they introduce Universal Basic Income.
Once people realise what has happened it will be too late.
I'v been doing a lot of building work and it seems a good chunk of self employed construction workers can't be arsed to work due to the SEISS :(
One of our clients has 30 furnished holiday lets and got a £10,000 rates grant on each one......
For the first time (ever) some clients have actually got some cash in the bank. I think this was due to the grants, the fact that they've not been able to spend any money, and the bounce back loans (BBL) being handed out.
It's amazing how house prices have boomed in the past 12 months despite the global lockdown... but I expect a wobble later on this year, because when furlough ends, and BBL's become repayable and reality kicks in... it's all completely unsustainable.
I think UBI (Universal Basic Income) is on the cards. I think inflation is already here and prices will go up because people have the money (they've borrowed it) and they've not been able to spend it freely for ages, so I can see prices going up.
Just like you NH I have been astounded at some of the profit figures, like you say for small clients with premises, for example one set of accounts over my desk recently.
Net Profit
2019 £11K
2020 £10K
2021 £38K (£31K Govt support received)
I'm raging but with the Government.
No pandemic plans, no contingency and a free for all grants system that has enriched some people beyond their dreams.
A simple clause should have been inserted into all grant claims stating that where profits for any reason ended up higher than the previous year grant income would have to be repaid to reduce profits back to the previous level (in this case £28K to be paid back).
All this money the Government has borrowed needs to be paid back, and with inflation on the rise so will the debt interest.
Some people are going to get clobbered for tax for the foreseeable......
"All this money the Government has borrowed needs to be paid back, and with inflation on the rise so will the debt interest."
The debts will not be repaid, inflation will merely erode their value, the need for a Mrs T household budget approach to HMG's finances has been shown to be an illusion.
Profligate government spending can be an issue , exchange rates can suffer and living standards can be hurt badly, but when most countries are doing similar with their money supplies at the same time the exchange rate issues are much less.
Frankly all we should now do is learn Mandarin or Cantonese to communicate readily with our future economic masters. (Not my problem at my age but for any under 30s on here, welcome to your Brave New World)
You got that wrong, with me you really just need to ask me not to sing, period, the actual song I am attempting to sing makes no difference to the sound emitted.
Good points.
The clobbered ones will not be the beneficiaries of the money it'll will be your limited company owner, your investor with CGT rates same as income tax etc
80% of my clients are artists/craftsmen. The turnover (excluding the grants) of a few is higher than in previous years. I am working on one client's accounts at the moment whose turnover has increased by more than 30%. They put it down to people being stuck at home with money to spend - not enough for major purchases - and have been shopping on line. They applied for the first two instalments but not for the later ones.
Other clients have depended upon the grants in order to live.
All together now .....
Bush, Bush, Bush, Bush, Bush, Bush, Bush
No income tax, no VAT
No money back, no guarantee
Black or white, rich or broke
We'll cut prices at a stroke
God bless Hooky Street
Viva Hooky Street
Long live Hooky Street
C'est magnifique Hooky Street
Magnifique Hooky Street
You just wait until we have left you, "Everyone loves Scotland", twelve points pouring in from all and sundry whilst we blast their ears off with the Pipes.
Apparently I can get 17/2 for us beating you on the 18th June, if I want to place the bet I need to do it before another chunk of your squad gets crocked in the Champions League final and the odds drop.
My squad are playing the Swiss on 12th June (no yodelling, please ;-)
I'd take 17/2 myself, if only Scotland could find a decent goalie. Did I mention I lost my Bumper Book of Scottish Goalkeeping Heroes when it slipped down the crack behind my desk?
Bet now on but it had dropped to 8:1
Not too concerned in goal, defence is a mixed bag but so is England's, their midfield is a tad more creative, upfront is where I am most nervous (our fishermen being far more familiar with nets), but all in all 8:1 on a single football match is just wrong, 2:1, 3:1 I could accept (just), 8:1 is not probability it is just where the money has chased the odds. So, if I have got it right my £1 could buy me a fish supper post match.
Back up to 17/2 on Paddy Power today. You might have missed out on a fried Mars Bar dessert! Based on what you've said, 4/1 for a draw looks good value.
Odd, isn't it, how Scotland once had the greatest striker ever (King Denis) but these days the front line couldn't hit a cow's ar*e with a shovel. I guess all those high scoring matches you have: Forfar 5, Hamilton Academicals 6 ; Rangers 9 Cowdenbeath 1 and so on must be down to butterfingered goalies.
High scoring needs compared with number of attempts, if the other side gets 30 on target and score 5 the goalie actually played not too bad, whilst goalies do make mistakes more often than not it is winning in midfield that decides games, if they let you down your defence comes under pressure and if they make mistakes then often the goalie is just the poor sod who carries the can.
The only reason I give us any chance is Tierney, Robertson, McGinn and McTominay, that and the fact it is effectively a derby game where anything can happen. History tends to suggest that usually England are not as good as the press think they are and Scotland are not as poor as we all think they are.
I'm backing a draw. Probability 33% (IMHO) ; Bookies' Odds 4-1. Terrific value!
Might as well blow some of the £10k rates grant Rishi kindly sent me, before somebody asks for it back ;-)
A bit like Sunderland, there was a period where if you bet on a 1-1 draw for each of their matches you were on a winner. Your draw prediction could well be sound.
I really do not bet much but my other half and kids enjoy doing 4-8 event perms with large stakes (sometimes as much as 25p). The real annoying part is when they start supporting a team on the box not because they like them but because they backed the result.
You forgot King Kenny and of course Souness, Hansen, Bremner etc, our problem is we never have real quality right through the team, sometimes one area is strong but the others are weak, it is what comes from having a relatively small population,we struggle for a top quality 11.
Then again England ,with ten times the population ,can be a tad bare in some areas (right now looks like their defence) and their midfield though respectable is not stunning, imho the only real superstar in the team is Kane.
More crucially, who did we give our points to without entering an agreement to receive something in return. The French probably and they reneged on it.
C'est la vie!
I'm surprised the EU let us take part. I guess nul points is our Brexit payback.
According to Radio 4's More or Less it was....
Lithuania!
We need a trade agreement with them quick... with small print ;)
(09:48 onwards - 5 min item) https://www.bbc.co.uk/sounds/play/m000wc4t