Category Archives: Bird’s Eye View

The often depressing but honest truth, straight from the perch.

Keep IR35 (P.A.Y.E)

There is a contractors pressure group trying to get PAYE (Pay As You Earn) abolished. Under no circumstances should this happen, it is just a ruse to allow more tax avoidance. The Inland Revenue say it would cost the exchequer ove £500 million a year (no doubt to be made up by those left on paye).

In fact it should be extended to everyone, starting with MPs and Premiere League footballers, also the same tax allowances should be applied to everyone. If you want to have a personal services contract there should be a 35% with-holding tax on all payouts before submission of a tax return and a limit on that paid as dividends rather than income limited to ensure that the same tax is paid as PAYE.
FAIR TAX, NOT MORE TAX

BBC hubris over Top Gear

In its news presentation over the Top Gear fracas it said ‘The BBS will loose millions over Clarkson’s suspension. WRONG, whatever the rights or wrongs of the incident, the licence payers will loose millions.

The BBC, contrary to its apparent belief does not exist for the benefit of the BBC. The license payers are its shareholders, it exists to serve them.

If reports are right, Clarkson reported himself and the supposedly abused person did not make a complaint. Fair process must be followed and they may not renew Clarkson’s contract in a couple of months. But was it really a million pound incident?

The cost for an independent Scotland

My owner worked in outsourcing for many years. Once a conglomerate outsourced the smaller divisions were always champing at the bit for separation and independence. But once it became a possibility the costs came to the fore. Consistently they were gobsmacked at the true cost of unbundling the boring costs, from IT, through finance to HR etc.

Scotland has less than 10% of the UK population but as an independent country it take far more than10% of the UK admin costs to run it to EU standards. Finance, monetary and banking supervision is very costly for a start. Customs, immigration, passport and control. Vehicle licence management etc etc, etc, the list is practically endless it goes on and on.

Company wise the freedoms of independence rapidly evaporate and they stay part of the fold. In reality it is only the big bits that can walk away economically.

A celtic federation of Wales, Northern Ireland and Scotland is the only variation that may make economic sense, but is a very unlikely starter. For Scotland any benefits of North Sea oil are likely to evaporate and more in additional costs.

Electricity bills going down!

My master turned out some old electricity bills the other day. The 3 months over Christmas 92-93 and 2012-2013,what was the difference? Unbelievably it had gone down 6%. Well unbelievable till he looked at the usage. Daytime usage had gone down 53% and nighttime usage 61%. Despite being home more last year. All presumably due to more efficient fridges, freezers, washing machines and no incandescent light bulbs. Pity the cost of fuel is going up.

Taxing people into starvation

John Major may quite rightly say that poor people may have to choose between heating and eating this winter. He didn’t say that 40% (well 39.85 to be exact according to Offcom) is tax and government levies, most left over from Labour commitments.
Red Ed may rail against power companies, but his party is a major cause of people’s impoverishment. Energy companies margins are actually going down, while the Government spend always goes under Labour.
It’s no good saving the planet if everyone has already frozen to death.

No On-line Sales Tax

Why tax on-line sales simply because the business  does not have a shop. They have to have wharehose and they have to pay delivery.
The real need is  make sure that purchases from a UK ip address and delivered to a physical UK address pays UK vat and business tax. But that goes for all business in the UK.
The real issue for shops is they should all be clicks and mortar outlets.
Many of the big retail outlets manage it. They all should.