An entrepreneur, accountant and mainly an International Strategic Consultant specialising in Project Finance and Sovereign Risk analysis and funding.
A past Business School External Examiner and Moderator and ad hoc lecturer with an increasing focus on SME activity from 1998 and particularly technology and Venture Capital.
A widely published writer on global economy, business and technical issues.
An activist, promoting both SME and SMP interests to Government and regulators, as a representative of professional bodies and their holistic interests and concerns.
When I last tried to use the Agent's Helpline, (over 18 months ago) after waiting for nearly one hour, the agent I spoke to was utterly clueless and admitted she was not competent to respond to the question.
She then stated that a qualified adviser would call me back and then demanded I provide a password for the future call.
I am still waiting...
What I now do, is to write to Jim Herrar, the head honcho.
It's a nice idea for a Government to purposefully devalue its currency to help reduce its debts.
Two problems:
1. The Sovereign Risk Market turns against any more borrowing, and, worse:
2. Import costs rise dramatically.
Britain has fundamentally been running appalling Current Account (Balance of Trade) Deficits for far too long and relies on import of essentials: food in particular.
Drive down currency value and food increases in lock step.
Quote: "Indeed. All that profligate nonsense wouldn't have happened under Thatcher.".
Unfortunately it did.
She flogged off the family silver to her mates in the City for far less than its true value.
If you stand back and think laterally, selling British Gas and encouraging UK citizens to buy shares was no different to me offering to sell you your car. Which you already own...
Interestingly, the Allotment Committee ensured few British citizens were allocated shares: most of them went to major venal international bans including Japanese banks who "Stagged" the issue.
Same with water boards, what became BT, etc.
Thatcher crowed "We are the party of low taxation!"
Oh yeah? If you were earning vast sums, but not for the majority.
How about, for example, Class IV NIC? A pernicious tax with zero benefit for the payers. How dare people work for themselves and try and succeed!
Thatcher abolished the sensible concept of earnings related contributions and earnings related benefits; and, instead, brought in Higher NIC plus Employer's Contributions and abolished graduated benefits; i.e. you pay more and receive far less.
Which is precisely why state pensions are in such a bloody mess and the lowest in Europe.
True monetary inflation is simply a metric of Money Supply related to Productivity.
If the idiot Government prints money, yet productivity remains the same the outcome is Monetary Inflation.
Unfortunately, banks can create new money by using what is called Credit Money Creation. And are busy doing so...
As borrowing costs escalate, then workers will be screaming for higher wages/salaries, which will simply exacerbate the core problems!
As the leading firm Mazars pointed out circa 18 months ago, by the B of E increasing Base Rate the venal bankers screw up borrowing rates and seriously impact and even bankrupt SMEs.
Which will create large levels of unemployment.
(The Mazars article was published by accounting web at the time).
SMEs (and the majority are small) create circa 48% of the UK's Private Sector GDP and around 47% of Private Sector employment.
At the same time, credit card operators and mortgage providers, instantly increase interest charges. Yet the banks charge up to 39% interest but pay peanuts for deposits.
The economy is in dire straits and a majority are struggling to survive: yet Government increased taxes, local authorities increased business rates and council tax. Greedy energy companies are similarly [***] the public: as are major food outlets.
Mortgage Repossessions are zooming: Buy To Let Landlords are on the point of insolvency.
Government seem to be doing their very best to create a massive depression!
Interesting to also learn, today, that Government borrowing has now EXCEEDED 100% of GDP!
It is a fact that HMRC's IT systems swap data, between Income Tax returns and VAT returns.
Indeed, some years back we had an idiot client who, despite my repeatedly warning him that his turnover was approaching the then VAT threshold for compulsory VAT registration, he ignored my (written) warnings and was eventually jumped on and firstly forced to register and then fined for failing to do so.
Now it is a fact supplier's invoices carrying an input charge, can be included in a VAT period return and the input tax offset against the output tax; EVEN THOUGH they have not as yet been paid. The criterion is the Tax Point.
Thus a trader adopting Cash Accounting, will find that there is a disparity between his VAT returns and his tax returns!
My approach to problems with HMRC now, is to write to Jim Harra.
My overriding ethos is "Talk to the organ grinder - not the monkey!"
Interestingly, only two days ago I did succeed (after a 30 minute wait) to actually speak to an "Adviser". Problem one was that she was foreign and I could hardly comprehend what she was blathering about.
Problem two, was she hadn't a wee clue what the hell she was doing.
After 10 minutes and as my blood pressure was rising to the stratosphere, I did finally manage to elicit from her that I could expect an answer from the "Appeals Team" to a letter sent on a client's behalf in early February, in, wait for this...early May!
Meantime, HMRC's dumb brain computer system keeps on churning out demands and penalties and my client is not happy.
What we need is a Tax Strike by all self employed and close companies.
Unlike France, however, I doubt most Brits have brass ones.
I never ever believed politicians from when I was around 18 and studying at commercial college for my intermediate ACIS and met a few older students and we chatted about politics and what weasels politicians were.
I well remember when the pathological liar, Traitor Heath announced the introduction of VAT: "One simple tax; one low rate" he trumpeted. And then tried to justify the imposition of this iniquitous tax by stating it was a replacement for Purchase Tax.
Except, of course, Purchase was implemented in 1940.
"Purchase Tax was a tax levied between 1940 [1] and 1973 [1] on the wholesale value of luxury goods sold in the United Kingdom. Introduced on 21 October 1940, with the stated aim of reducing the wastage of raw materials during World War II, it was initially set at a rate of 33.33%." I had much involvement with it. The core difference was it applied to luxury goods, ONLY and ONLY NEW goods.
The real reason for the introduction of UK VAT was Traitor Heath's passion for the UK to enter the EEC (European Economic Community), lying consistently and constantly, that the EEC was simply "A Trading Relationship", when he knew full well that Britain's accession to the EEC was going to be far more!
One only had to read the Treaty of Rome (The founding legal document of the EEC in 1957) to quickly realise what the future held: not good, as we now know.
Britain was already a founder member of EFTA (The European Free Trade Agreement) in 1960! So why did we need another?
"One simple tax".... I wish! "One low rate"; again I wish!
With the exception of the other political idiocy, Selective Employment Tax: https://en.wikipedia.org/wiki/Selective_Employment_Tax
once VAT came into being, for the first time people's work was taxed! As if they were not paying enough already!
It was only a short time that unlike Purchase Tax, then VAT was levied on used goods too!
Perhaps the best illustration of the nonsense of VAT was the infamous Mcvitie Jaffa Cake battle! Was it a biscuit (a luxury and attracted VAT) or actually a cake ( food and therefore not subject to VAT).
I attended a CPD session many years ago and the presenter was Vaughan Chown, then with Gee and Company, who fought Customs and Excise for Mcvitie and eventually prevailed.
More critically, as Britain has now left the EU, it has no reason or justification to continue to charge VAT. Let's have a simple sales tax instead as is operated in the USA and varies state-by-state.
(P.S. My Major at Management School in the mid-1970s was the EEC, so I know a little about it!)
My answers
When I last tried to use the Agent's Helpline, (over 18 months ago) after waiting for nearly one hour, the agent I spoke to was utterly clueless and admitted she was not competent to respond to the question.
She then stated that a qualified adviser would call me back and then demanded I provide a password for the future call.
I am still waiting...
What I now do, is to write to Jim Herrar, the head honcho.
I advise all other practitioners to do the same.
It's a nice idea for a Government to purposefully devalue its currency to help reduce its debts.
Two problems:
1. The Sovereign Risk Market turns against any more borrowing, and, worse:
2. Import costs rise dramatically.
Britain has fundamentally been running appalling Current Account (Balance of Trade) Deficits for far too long and relies on import of essentials: food in particular.
Drive down currency value and food increases in lock step.
Here is Mazar's analysis from 2022, which I mentioned, earlier.
https://www.mazars.co.uk/Home/Services/Financial-advisory/Restructuring-...
Quote: "Indeed. All that profligate nonsense wouldn't have happened under Thatcher.".
Unfortunately it did.
She flogged off the family silver to her mates in the City for far less than its true value.
If you stand back and think laterally, selling British Gas and encouraging UK citizens to buy shares was no different to me offering to sell you your car. Which you already own...
Interestingly, the Allotment Committee ensured few British citizens were allocated shares: most of them went to major venal international bans including Japanese banks who "Stagged" the issue.
Same with water boards, what became BT, etc.
Thatcher crowed "We are the party of low taxation!"
Oh yeah? If you were earning vast sums, but not for the majority.
How about, for example, Class IV NIC? A pernicious tax with zero benefit for the payers. How dare people work for themselves and try and succeed!
Thatcher abolished the sensible concept of earnings related contributions and earnings related benefits; and, instead, brought in Higher NIC plus Employer's Contributions and abolished graduated benefits; i.e. you pay more and receive far less.
Which is precisely why state pensions are in such a bloody mess and the lowest in Europe.
True monetary inflation is simply a metric of Money Supply related to Productivity.
If the idiot Government prints money, yet productivity remains the same the outcome is Monetary Inflation.
Unfortunately, banks can create new money by using what is called Credit Money Creation. And are busy doing so...
As borrowing costs escalate, then workers will be screaming for higher wages/salaries, which will simply exacerbate the core problems!
As the leading firm Mazars pointed out circa 18 months ago, by the B of E increasing Base Rate the venal bankers screw up borrowing rates and seriously impact and even bankrupt SMEs.
Which will create large levels of unemployment.
(The Mazars article was published by accounting web at the time).
SMEs (and the majority are small) create circa 48% of the UK's Private Sector GDP and around 47% of Private Sector employment.
At the same time, credit card operators and mortgage providers, instantly increase interest charges. Yet the banks charge up to 39% interest but pay peanuts for deposits.
The economy is in dire straits and a majority are struggling to survive: yet Government increased taxes, local authorities increased business rates and council tax. Greedy energy companies are similarly [***] the public: as are major food outlets.
Mortgage Repossessions are zooming: Buy To Let Landlords are on the point of insolvency.
Government seem to be doing their very best to create a massive depression!
Interesting to also learn, today, that Government borrowing has now EXCEEDED 100% of GDP!
Weimar Republic here we come!
https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic
I've just spotted one anomaly.
It is a fact that HMRC's IT systems swap data, between Income Tax returns and VAT returns.
Indeed, some years back we had an idiot client who, despite my repeatedly warning him that his turnover was approaching the then VAT threshold for compulsory VAT registration, he ignored my (written) warnings and was eventually jumped on and firstly forced to register and then fined for failing to do so.
Now it is a fact supplier's invoices carrying an input charge, can be included in a VAT period return and the input tax offset against the output tax; EVEN THOUGH they have not as yet been paid. The criterion is the Tax Point.
Thus a trader adopting Cash Accounting, will find that there is a disparity between his VAT returns and his tax returns!
Thus HMRC are setting a trap for themselves...
My approach to problems with HMRC now, is to write to Jim Harra.
My overriding ethos is "Talk to the organ grinder - not the monkey!"
Interestingly, only two days ago I did succeed (after a 30 minute wait) to actually speak to an "Adviser". Problem one was that she was foreign and I could hardly comprehend what she was blathering about.
Problem two, was she hadn't a wee clue what the hell she was doing.
After 10 minutes and as my blood pressure was rising to the stratosphere, I did finally manage to elicit from her that I could expect an answer from the "Appeals Team" to a letter sent on a client's behalf in early February, in, wait for this...early May!
Meantime, HMRC's dumb brain computer system keeps on churning out demands and penalties and my client is not happy.
What we need is a Tax Strike by all self employed and close companies.
Unlike France, however, I doubt most Brits have brass ones.
"Hire more staff."
You forgot the critical bit...
Who actually know what they are supposed to be doing!
I never ever believed politicians from when I was around 18 and studying at commercial college for my intermediate ACIS and met a few older students and we chatted about politics and what weasels politicians were.
One of my study topics was economics...
I well remember when the pathological liar, Traitor Heath announced the introduction of VAT: "One simple tax; one low rate" he trumpeted. And then tried to justify the imposition of this iniquitous tax by stating it was a replacement for Purchase Tax.
Except, of course, Purchase was implemented in 1940.
"Purchase Tax was a tax levied between 1940 [1] and 1973 [1] on the wholesale value of luxury goods sold in the United Kingdom. Introduced on 21 October 1940, with the stated aim of reducing the wastage of raw materials during World War II, it was initially set at a rate of 33.33%." I had much involvement with it. The core difference was it applied to luxury goods, ONLY and ONLY NEW goods.
The real reason for the introduction of UK VAT was Traitor Heath's passion for the UK to enter the EEC (European Economic Community), lying consistently and constantly, that the EEC was simply "A Trading Relationship", when he knew full well that Britain's accession to the EEC was going to be far more!
One only had to read the Treaty of Rome (The founding legal document of the EEC in 1957) to quickly realise what the future held: not good, as we now know.
Britain was already a founder member of EFTA (The European Free Trade Agreement) in 1960! So why did we need another?
"One simple tax".... I wish! "One low rate"; again I wish!
With the exception of the other political idiocy, Selective Employment Tax:
https://en.wikipedia.org/wiki/Selective_Employment_Tax
once VAT came into being, for the first time people's work was taxed! As if they were not paying enough already!
It was only a short time that unlike Purchase Tax, then VAT was levied on used goods too!
Perhaps the best illustration of the nonsense of VAT was the infamous Mcvitie Jaffa Cake battle! Was it a biscuit (a luxury and attracted VAT) or actually a cake ( food and therefore not subject to VAT).
I attended a CPD session many years ago and the presenter was Vaughan Chown, then with Gee and Company, who fought Customs and Excise for Mcvitie and eventually prevailed.
More critically, as Britain has now left the EU, it has no reason or justification to continue to charge VAT. Let's have a simple sales tax instead as is operated in the USA and varies state-by-state.
(P.S. My Major at Management School in the mid-1970s was the EEC, so I know a little about it!)