The amazing thing that is called bureaucracy seems to grow from day-to-day, yet is this good or bad – a help or a hindrance?
Whilst it can be a good to help define and control things, it can also be a factor in holding back progress and growth too…..
With today (Wednesday 19th March 2014) being Budget Day here in the UK, another day where we will have:-
- the Government shouting from the roof tops about how well their Fiscal measures are doing
- the Opposition shouting how they would do things better
- Advisory/Accounting companies proving how valuable they are by coming out with data that does really mean anything for the ordinary person in the street – justifying their own existence and important
- Financial experts giving their opinions as to how this will impact, what they should have done and how they would have done things
- oh and then the Press trying to put their spin on things based on a) their Political objective and b) justifying how great they are and why you should listen, watch or read them….
We will have promises of these savings – few of which will impact us straight away – and investment; all have which will put more money in our pocket or help us to feel better by the thought of possibly buying our own house or how company improving by been able to do more by investing and extra sales generation.
But does this matter?
Back to the old “yes” and “no” question….
Yes – because we want a job, more security over employment and better wages. The ability to save not just for now about our future with our pensions. Opportunities to allow us by saving to hopefully buy our own house and start securing our future….
No – well this is the real big one…
Whether the Budget is good or bad, the only people who actually do well out of any Budget is the advisors, experts and Accountancy companies/firms who are advisory companies and individuals on telling the Government, companies and individuals; what to do with regards to reducing liabilities – or as many consider to be called Tax Avoidance or Tax Evasion.
Looking at information taken from The Inland Revenue site showing Income Tax rates and Allowances it could be said that based on the figures for 2013-2014, the tax is:-
– less that £32,010, you will pay 20% tax on everything you earn
– earn over £32,010 then you pay 40% on everything you earn over £32,011
Confused? You should be as where is the 10 pence tax band they keep talking about in the medium that is called an informative Press? Some say that it is in place and others say it isn’t and others say:-
– earn over £32,010 then you pay, 10% to £2,790, 20% on £2,791 to £32,010 and then 40% on everything over £32,011
How can the ordinary person in the street, wanting to earn a fair wage and pay fair taxes. But the one thing that is totally in common, speak anyone for advice or information, they just say, speak to a bookkeeper, accountant or an accountancy company/firm and they will be able to help. Are these the same people who said this when George Osborne asked for help in reducing the complicated structure of tax – yes! Guess what, effectively, they said they couldn’t simplify it!
TREASURY SELECT COMMITTEE SAYS TREASURY CALCULATIONS OF POTENTIAL INCOME ARE “INHERENTLY EXTREMELY UNCERTAIN”
So surely, does The Chancellor of the Exchequer have the BALLS (excuse the pun Ed Balls) to stand up to these mandarins in the Treasury, HMRC and especially the big accountancy firms and say, right, all allowances are now axed and we are going to have a simple taxation system that applies to everyone, whether they earn £5,ooo, £50,000 or £500,000 – it is a complete level playing field!!
Why should high-earners be allowed to offset things to reduce their tax, set up companies and be paid by them at a lower rate or pay into schemes that allow more off-setting against tax payments? Can it be right that they high-earners pay less as a percentage pence in the pound as a lower earner?
Would a simpler answer be to say do something like this:-
- £0,000 to £5,000 = 0% Tax
- £5,001 to £10,000 = 5% Tax
- £10,001 to £20,000 = 10% Tax
- £20,001 to £30,000 = 15% Tax
- £30,001 to £40,000 = 20% Tax
- £40,001 to £60,000 = 30% Tax
- £60,001 to £80,000 = 35% Tax
- £80,001 to £100,000 = 40% Tax
- £100,001 to £125,000 = 45% Tax
- £125,001 to £175,000 = 50% Tax
- £175,001 to £250,000 = 60% Tax
- £2500,001 to £500,000 = 70% Tax
- £500,000 plus = 80% Tax
Wow – what a shocker – people would all be in the same position of:-
- Not just having to pay tax but no way avoiding it
- Living with in your means, so you have to be like every person
- Create a situation where when you want a mortgage, then everyone has a mortgage based a simple philosophy of say, every one can have a mortgage but it is based on no more than say 5 or 7 times your gross salary and this can’t be fixed or falsified
- No methods of off setting items to reduce your tax
- No methods of setting yourself up as a company to pay yourself in share dividends to avoid tax
But wait, the shock horror, two major issues will stand out….
Issue One….Estate agents….
This industry will go mad as they will actually see house prices been priced correctly and not driven up by false demand!
Housebuyers gazumped in deals with NO rival bidders: Unscrupulous estate agents are persuading sellers to raise prices days before exchange of contracts
- ‘Ghost gazumping’ sees sellers increase house price days before exchange
- Some paying additional six-figure sums to avoid finding another property
- Comes amid fears of a property bubble – which some say was fuelled by Government’s Help to Buy scheme
Read more: http://www.dailymail.co.uk/news/article-2582323/Housebuyers-gazumped-deals-NO-rival-bidders-Unscrupulous-estate-agents-persuading-sellers-raise-prices-days-exchange-contracts.html#ixzz2wPKmU0rm
No wonder people are finding it hard to buy houses if this is happening! Also, with many people leaving Estate Agents and setting up on their own, these people will want to make a living, so they all will be promising Sellers and Landlords better returns so this will keep driving up prices and rents…
Issue Two….Bookkeepers, Accountants, Accountancy Companies & Firms….
Why are they needed? Do we need so many and charging so much? If someone wants to start a business and be a Limited Company, straight away, this could add £1,000, £2,000 or more to their operating costs just to do end of year returns depending on their size! And that is without monthly accounts, payroll etc…
The whole concept of introducing ways to off set items against your tax has so spiraled out control, that like the article mentioned above, even this industry can’t work out a way to simplify it! So, by removing all these off sets and allowances, it will make everything so much easier for everyone to be on the same level playing field!
Just think how much more tax would be generated and thus paid into the economy thus making things so much better for everyone…
So, Mr. Osborne and fellow Politicians, isn’t time you actually stood up and start listening to the country and actually create a level playing field that will help so many to raise up and be able to say we aren’t being ripped off by companies, goods and services are at a fair price and hopefully we could lose the tagline of “Rip Off Britain” ?
These are just a few thoughts for you and you most likely will have a view even for or against and if you feel you need to comment or voice an opinion, either contact myself here or complete the form below:-
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