Avoiding tax and creating Rip Off Britain?

#RipOffBritain #IanCalvert #SA #ServiceAddress

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!

#GeorgeOsborne #Telegraph #SA #ServiceAddress #Budget #TaxMP’s shed doubt on George Osborne’s tax-avoidance blitz



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:-

The images contained within this article here were taken via a word or terminology search on www.google.com and images found via the images tab


No mortgage? Blame the banks or are Estate/Letting Agents that are to blame?

Should I buy or rent but how?

#Buy #Rent #Home #Flat #ServiceAddress #TSP #TheSocialPiggy

Where do I get the money from?

We all hear the issues of people struggling to get deposit’s together to buy houses and then banks are not willing to lend as they feel these people can’t afford them – really?

In essence, we have two major issues here and these need to be addressed in two very simple easy steps by the Government and the Bank of England…..but neither have the ‘Balls’ to does this! (So to speak!)…..

To rent a place….

Firstly, you need to be assessed by a reference/credit check per person! This can be as much as up to £195 per person and then you may also have an application fee of up to £250 and in some cases, some agents may even charge for children! Now whether you can get this for less or not but let’s say all in for £250, here is the start…

Then you need a deposit and this can be dependent on results of the above ranging from a month, six weeks, two months or three months….

Then you may also need a month up front too….

Say, let’s say the rent is £1,000 and you are couple plus they want two months deposit this could cost you £3,000 plus say the application of £250, that is a total of £3,250 even before you walk through the door!

An important thing to remember is that the application is not a Passport! So, if the place fall’s through and you can’t find another place, you then move to another agent and you have to pay an application fee all over again! Potentially, if you can’t find a place, you could go through to two or more agents which means at least £500 or more and with no house…..

Buying a house….

OK – the days of 100% mortgages have disappeared but if you are lucky you may get on a Government scheme to help you to buy or a shared purchase and failing that, you may need to find a deposit of 5% (if you are lucky) or in most cases 10% and above…..

So buying a house, let’s say (if you can find one) around £150,000, you could need to find anywhere £7,500  but in most cases £15,000 and above…..

Plus with changes to finding a mortgage or arranging a mortgage – you will need to involve a broker which could be £1,500 and above before solicitors and survey fees! So, you have just kissed goodbye to possibly £2,000 and that is before stamp duty/taxes (if applicable) and removal fees!

Then dependent on your credit history – the choices of getting a mortgage may vary, thus meaning a choice of interest rates based on your credit rating with the High Street lenders. Failing them based on your report, you will have to choose another lender and in some cases if your credit history is poor, you will be placed with Sub-Prime Lenders who charge more than double High Street Lenders!!

And here is the issue……

  • Renting can be classed as dead money (and yes here in the United Kingdom we want to own our own place, more than anywhere else in the world) and the cost can be so high with rental payments being more than mortgage payments!
  • If you have bad credit, you don’t get the best mortgage rates on offer and tend to go higher thus meaning higher interest rates which means higher mortgage payments

In both the cases above, the situation creates the issue of debt increasing and people getting into financial trouble as they are being forced to pay more money than they need to.

Thus, high rents means you struggles to pay bills, so you juggle your money to pay the rent and then other bills in order of importance and this then affects your credit rating. Now these rents are high and it could that these rents is driven high by agents asking high prices and in a lot of cases, the rent can be more than double the mortgage!

So with Letting/Estate agents driving up prices whether be for rental or purchasing the property, how can people afford to rent or buy as a realistic rate these days without getting into debt?

Here is an example for you to consider……

I was speaking to the cashier in my Building Society recently and she said she was moving. I commented that no doubt she got a deal on her mortgage with Building Society with staff discount and she said no. It transpired that with what her and her partner earn, the best mortgage they could get was for £138,000 and they would need at least a 10% deposit. Yet, as she said, there was no where within traveling distance of where they both worked, they could buy for that amount. 

Now here is the kicker……

She then explained, that the rent they were paying for their flat, if this was changed to a mortgage payment, they would be paying for £320,000 mortgage! Now explain if that is fair……

In summary, yes we could blame debt issues on people not paying their bills when they are due. Yet what are their paying for their rent or mortgage? Is this at high rates which is creating their bad debt position? Are banks/building societies charging too wider range of rates which is fueling this bad debt issue…..


Furthermore, could the issue be created here with Estate and/or Letting Agents? We see more and more of these opening each and every week – how many do we need? With more and more appearing, they all need to earn wages and pay for the running costs of their business – so this doesn’t help at all. Have you noticed that Estate and Letting Agents are normally always on the High Street or very prominent positions – thus meaning they are paying very rents for their offices! With them all trying to get business, they will be quoting higher sales prices or rental rates to secure the business and thus the seller or landlord wants the most money too, so they choose the Agent offering the most…..

So in summary, are Estate/Letting Agents responsible for driving up prices which create high prices for people wanting to rent or buy the properties or is it the banks/building societies both offering such wider ranges of rates which then create high rates and making/creating debt issues…who do you think is to blame……

And just to give you something extra to think about……..

Britain’s smallest £1,000,000 home up for sale… … …. – Monday 10th February 2014

UK’s most expensive parking space sold for £400,000… … …. – Thursday 13th February 2014 

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