Tax shouldn’t have to be taxing
22 04 2008Well I beg to differ, for a multitude of reasons. Every three months I get a distinct feeling of melancholy as I sign the cheque and the form that encompasses my main businesses VAT return. I know that paying an ever increasing sum of money to the government each quarter signifies a growing business, but it still galls me deeply - much to the amusement of my book keeper as she prises the cheque out of my kung fu like death grip.
I have just signed last years accounts off, which means I shortly have to write a cheque for that years Corporation Tax. Now Corporation Tax is something that I feel is deeply unfair to new and growing businesses. When a business is growing, with cash flow tight and expenditure tightly managed, the accrual and payment of this tax comes as a bit of a kick in the teeth. I do wonder whether or not it would be more beneficial to such businesses that they are exempted from paying this for the first three years of their life, or that they receive a 50% discount. Of course this will never happen, nowadays most new businesses do not last three years and the Brownite Nu Labia government just wants to tax us all into oblivion it seems.
Finally, I received in the post today a gentle reminder from the Inland Revenue that my Self Assessment tax return for the year ending April 08 is due any time between now and 31st January. Well thank you for reminding me, I dare say I’d have remembered of either my own accord, or via gentle reminders from both my book keeper and accountant - after all that is one of the things they get paid to do. But still the polite letter shall be filled away and revisited at the end of the year when I feel like it and my accountant starts to get antsy about having not filed it yet.
As a postscript, I feel desperately sad for the people affected by the abolishment of the 10p tax rate. In times of rising costs of living and escalating fuel prices, people must feel that they’ve been abandoned without a care in the world. Watching the government back peddle, implode and attempt to reposition is the only good thing that comes out of this debacle.
Yes, you’ve seen my take on these bar stewards.
Not much concellation but can’t you pay the VAT once a year rather than monthly?
The 10p tax abolishment works out to £10 a month per person right? I can’t see it making a lot of difference to most people - but child tax credits are going up so it should even itself out.
Nope you have to pay your VAT quarterly, so that you don’t run off with the money and enjoy it yourself!
It is something like that, but there are some people for who a difference of £10 a month will really hurt them. Typically in the past those have been the people that Labour have sought to support.
Quarterly I guess that’s something. you can enjoy the interest for a little while - unlike income tax payers.
Oh I like the way they labelled it 10p not 10% - 10% sounds like more to me.