Why is London important?
Is it really important?
Take a step back and just look at London and you see all the banks, financial institutions, clearing houses, accountants and consultancy companies all with links and connections to HM Government (and yes Political parties too) in what can only be seen as dictating or influencing them – yet is this right? Many would say yes as they are the experts to offer all this advise and support to them and deliver what is needed. Really – more spin? Just look at last weekend, there was a report in Telegraph Newspaper by Szu Ping Chan
Treasury Select Committee says Treasury calculations of potential income are “inherently extremely uncertain”
The main interesting point here is that Osborne set a group to investigate in to making tax simpler! Yes you read right! The interesting thing though, is that people sitting there and looking into this are the same major companies that help companies and individuals to utilise Tax Schemes to help either avoid or evade paying tax depending which way you take your view on these schemes.
So what does this have to do with London? Simply that if you look at everything – it is all focused around London. They say one of these reason is that most companies are set up in London – WRONG!! When you set up companies, you normally use Accountants or Solicitors who then in turn use formation companies to deal with Companies House or you use a London address to have your Registered Office located. So, really in actual truth – companies may appear to be set in up London but they actually aren’t! Again, London seeming to be the main place when it is not….
All of which really says too much about how we rely too much on London and then in turn feel that we have to trust what is being done in London! If Osborne wanted to actually make business here in the UK more successful – he needs to get his own house in order….
- get rid of all these overpaid advisors working for big firms as they are advising him the way they can help their clients who in turn make more money without paying tax
- The removal of these companies and actually will mean he will need to look to the really business makers who are actually the ones that drive and make this country succeed:-
- Small Medium Business
- Small Medium Enterprises
- These people and companies are the ones that have staff that are struggling to survive in today’s economic climate due to the big companies and rich individuals avoiding/evading paying tax like these workers do
- These advisors really need to actually be brought under control and Osborne needs to simplify tax and he doesn’t need these advisors around him! It is pure and simple – remove all these allowances and facilities that companies and the rich are allowed
They say that rich individuals can get tax breaks by employing nanny’s/house keepers/childminders to look after their children – do the ordinary workers get this? No, they don’t. So, if the real workers have to find the money and try survive, then so should the high earners too. These workers are driving the country and right they are being penalised whereas the high earners are finding every way to reduce the amount they pay in tax…
If you look at overall earning at the end of a financial year, you will see the ordinary all roughly pay the same percentage pence on the pound as each other. Yet through all these wonderful allowances and schemes, the high earners (just look at celebrities, footballers and bankers amongst many) who are actually paying less pence in the pound than the real workers are the ones who actually keep these high earners in jobs!! Just look at the ordinary workers who are so passionate about football, that make sacrifices to buy tickets to games (which is one of the most expensive pastimes these days) to watch these footballers who are paid more in a year (well some in a week) than some of these workers may ever earn in the next 10 years or more….
Again, look at all these workers struggling to actually find a place to live (let alone ever buy) because rents are way so high. More often the landlords are business people are using schemes to again find ways to reduce what they pay in tax to re-invest into buying properties to make more at the expense of pay tax in more ways. Other recent reports are showing that it is actually cheaper to buy a house than rent, but the ordinary workers can’t do this as houses are way outside of their price brackets!
Yet, these advisors are in turn saying that to get the country back on it’s feet in one aspect is to build more houses and then people will buy and this is from developers and companies that are using schemes/allowances to reduce what they pay in tax but the houses they build aren’t affordable by the ordinary workers….
So, let’s make things simpler Mr Osborne:-
- Remove the allowances to make it a level playing field for everyone paying tax
- Abolish all schemes that allow you to avoid/evade paying tax
- Make every one pay the same amount in tax so that we can see that percentage we are paying the correct the correct amount i.e if you earn over £41,000 pa – every pound over that amount you actually pay 40% in tax
- Stop people being allowed to set themselves up as companies to pay lower taxes i.e. why do people employed by a company need to be employed as a contractor through their own company to reduce their tax bill? Isn’t this unfair on the people working around them?
So, if we take these simple easy steps, let’s actually see how much the income via tax increases for you Mr Osborne and then you can actually start looking at supporting companies in other parts of the UK where there is a great amount of skill going to waste because everyone thinks of London ….
Another classic example for you to think about is Shoreditch – why does this part of London have to be the “Silicon Valley” of the UK? We have companies that are really starting well in the Technology sector all around the UK including a great IT village environment that is starting to appear in and around the city of Manchester…
So, Mr Osborne, ditch those advisors and start dealing with the real businesses here in the UK…..and you never know, people may start trusting Politicians again as you will be making all these big companies like Amazon, Barclays Bank, eBay, Facebook, Google, Starbucks, Top Shop, vodafone, etc, etc start paying real tax NOT a gesture…….
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