Showing posts with label VAT. Show all posts
Showing posts with label VAT. Show all posts

Monday, 17 January 2011

Top 10 conclusions of 2010

By Dan Morris

Icelandic ash cloud caused major chaos in 2010
1. Icelandic ash cloud

If you'd have asked me the significance of a volcanic ash cloud 12 months ago I'd have looked back at you, baffled and bemused. However, given the media coverage of the Icelandic ash cloud in early 2010 I can now confirm it has the potential to close a continents airspace, ruin holidays and leave many, stranded in places far a field. This was the story of the summer, as British airports closed through safety fears leaving travellers stranded and the skies empty.

2. The Pope

The Pope's visit was arguably the most eagerly anticipated arrival in recent years. Pope Benedict XVI came to Britain for the first tine in 28 years. Complete with his entourage of security and his Pope mobile, he toured the UK at the expense of the taxpayer. With his visit brought major security fears and the UK was handed the bill. Put simply, the general public were paying to protect the Pope from the general public, couldn't we have just come to some sort of an agreement? The total costs were in excess of £20 million, in a recession. Yes, try not to laugh.

3. Comparethemeerkat.com

If we've learnt one thing from last year, it’s that to beat the recession you're going to need the help of a fury friend. The Meerkat has proved commercial gold as 2010 saw the birth of Alasandr Orlov, a meerkat from Meerkovo. For us, comedy genius that has made adverts interesting again. For conparethemarket.com, marketing genius. Simples.

4. England's 2018 World Cup bid

Hopes and dreams of hosting the World Cup in 2018 were shattered as FIFA president Sepp Blatter revealed Russia were the successful applicants. In typical British fashion we all believed we would win, when in reality we came last. We only received two votes and one of them was our own, that doesn’t even count - it's like letting yourself turn up. We played all our aces, sending over the world’s worst boyband and still lost. The reasons leave a lot to be desired, but FIFA had to give it to Russia because they've never hosted a world cup. There’s a reason they've never held a world cup and it has something to do with security, temperature and five different time zones, obviously FIFA don’t see them as a major issues.

5. Chilean Miners

39 men, one mile below the earths surface for 69 days. That's the story for the Chilean Minors that spent nearly two months, twiddling their thumbs wondering if they'll ever see daylight ever again. I say 69 I mean 68, for the other minor he was wondering how he was going to explain his mistress to his, worried sick, wife. We'll never know if he wanted to come out last but as the viewing faithful, willed him to just concede defeat and reside in the tunnel he'd spent the last two months. He emerged from the capsule, used to save him from obscurity, sporting Victoria Beckham-esque shades. There's keeping out the sun, and there's trying to keep a low profile, of which I'm sure this is the latter. But if we've learnt one thing from this series of unfortunate events it's this; cheats NEVER prosper.

6. 15% VAT

Those days are now a mere distant memory, but for those of you interested enough you'll remember VAT was slashed from 17.5% to 15%. Oh what's that, you didn't even notice. Fair enough, unfortunately that attempt to curb inflation and increase spending has now had adverse effects as frantic shoppers spent there last few days of 2010 buying everything they could, as it's now taken the inevitable hike, to 20 per cent. Thanks then.

7. General Election

It was the first time I could vote, have my say in who I'd like to lead our country and make the decisions that matter. I can't say I got my own way, far from it. But I suppose I shouldn't feel too hard done-by, did anyone? When Gordon Brown called a general election for May 2010, who'd have thought that come June we'd have, in power, for the first time in history, a coalition government. The tabloids have nicknamed them the ConDems - it's as laughable as their policies, I know. Needless to say after adopting a nation in turmoil and deep into a recession, they've not been too popular. Cuts have been paramount and the phrase 'reduce the deficit' has been rife.

8. Rise in tuition fees: Student protests

Three years as a student and I never once threw a fire extinguisher off a ten story building. There's one thing protesting and there is another thing causing chaos and destruction because you feel it is your right to cheap University fees. Well, actually it's not. University education is an investment not a government funded holiday and if you think every middle middle class family pays for their children to swan off for three years i'm afraid you're strongly mistaken. Rant aside, last years rise in tuition fees and subsequent student protests did nothing to alter the stereotypical student persona and they no doubt achieved more bad than good. On a possitve note, there will be less students and that can only help in the jobs market.

9. Big Brother

Last year saw the end of an era for one reality television show - Big Brother. Last summer saw us entertained by a wooden chest of draws and some of the finest drongos the world over but after a decade on the box, the original reality TV show left our screens in emphatic style with a fantastic final series. Sad to see it go, yes. Glad, yes but unfortunately I’m sure its absence has only made way for even more drivel, littering our television screens.

10. Royal engagement

Not really an awful lot to say about this other than Prince William finally decided he'd like to wed long term girlfriend Kate Middleton. 2011 will see the first Royal wedding for over a decade, and it will bring with it, not only an attractive Royal but also an extra day off. The 29th April will be a national bank holiday - so everybody's happy. When's Harry planning on getting married?

Tuesday, 14 December 2010

Tax: We're all in this together (except those that know the loopholes)

Artful Dodger: George Osborne Picture: 38 Degrees
By Dan Morris

I've lived a very naive 21-year existence as far as tax is concerned. Ducking and diving my way out of paying any by holding down a weekend job and squeezing every last ounce out of the education system. 

To me tax was something the general public, with proper jobs paid to fund my student alcohol addiction and fetish for dressing up as a smurf. 

I thought the day I'd actually have to contribute my bit to the economy would never come and until the summer I thought base rate was a psychological study, not some sort of code that roughly translates to a 20 per cent deduction in my wages. How wrong was I.

Every month my pitiful wage is slashed by a man as mysterious as Santa Clause - the taxman. I have no say in the matter and it's very quickly become a fact of life.

Tax is actually quite an important economic factor, even I know that. And now my time has come, I don’t like paying it, but it’s just something I have to do. I’m playing my part – the last thing I’d want to be known as is a tax dodger. No one likes a tax dodger.

It was recently brought to my attention, by a certain Duncan Bannatyne, that the owner of Harrods, avoids paying tax. Yes, that's right, the owner of the world’s most expensive department store - no wonder he's so rich. 

I believe Ken Bates, owner of Leeds United Football Club, also falls into this category along with a host of other public figures. It beggars belief that this is in fact legal, but apparently it is. 

How? Well pull up a seat and I'll tell you: 

Establishing residence in a low or nil tax jurisdiction is one of the easiest ways to substantially reduce your taxes. Basing yourself in a tax haven means that you'll get the benefit of low or reduced taxes overseas.
Located on the stunning French Riviera there is probably no tax haven more famous than Monaco and just a selection of the high profile people that reside there are: Paula Radcliffe, Richards Farleigh (Dragons Den), David Coulthard, Jenson Button, Roger Moore, Ringo Starr and Ken Bates in Monaco.
Simply; there is no income tax or capital gains tax in Monaco -- the main tax is a business profits tax that is levied on certain companies (but most expats structure their affairs so as to avoid it).
The Treasury has announced a series of measures to clamp down on tax avoidance in the UK. But I can’t help but think this will fall by the wayside. Check this.
Tax dodging costs the UK up to £120 billion every year, it comes to something when the very man that could do something about it is dodging £1.6 million of tax himself.
Now i’m in it. I can’t help but feel a little violated by the ‘we’re all in this together’ rhetoric from the coalition government. Mr Osborne really, are we?
This government has put a lot of effort into catching ‘benefits cheats’, and almost none into catching tax cheats, despite the fact that tax dodging robs the treasury of 15 times more income than false benefits claims.

I'm struggling to find why this might be the case, but perhaps it has something to do with the fact some front-benchers, including George Osborne himself, may be benefitting from tax loopholes. We certainly know that several prominent Conservative peers have off-shored their taxes – all legal of course.