HMRC crack down on Second Life.

The United Kingdom's HM Revenue and Customs is getting tough on
money made from virtual trading on
Second Life. Apparently, it is
benefitting from a super computer.
Patrick O'Brien, a spokesman for HMRC said individuals were free to make profits from trading through games such as Second Life, but would have to pay tax on gains which were greater than their annual capital gains allowance of £9,200.

European Referendum?

Are we going to get one? Probably not. Does it matter? It depends on your
acceptance of the European project of a common foreign policy, Euro army
etc. The Europeans would probably prefer a federal structure for the UK
and are nearly there with the various administrations in Scotland, Wales
and Northern Ireland. Brown/Blair are always tight-lipped on what they
get up to at this Euro summits, although there is much talk about red
lines.
One problem is the UK's lack of membership of the Euro zone. There is also the possible departure of the Club Med countries. People say this can't happen but in Italy the politicians have been talking about the possibility of such a
move. If Italy had the lira, which they could devalue, then this would be
some protection against German exports.

UK public pay row and economic stability.

With the surprise walk-out of UK prison officers, Prime Minister Gordon Brown says
he won't put economic stability at risk!! The prison officers don't want another year of below-inflation rises. Their 2.5 pct award was staged in two instalments,
which does not sound like a lot of fun.
Apparently, the nurses are also up in arms. Hopefully, it will not be a year of
discontent. However, giving low pay rises to people, who are on below average
earnings, does not seem fair. It seems not to happen to judges.

Poor old Martin Jol!!

I was surprised at the Bank holiday weekend to read that Martin Jol was not in full charge of Spurs' transfer purchases. The North London club buys players like confetti
and they seem to have four of everything. The club has been unlucky with injuries but
they appear to lack creativity in midfield while the defence seems to sink goals.
I feel sorry for UK Chancellor Alistair Darling, who apparently will have a lower
tax take due to lower-than-expected City bonuses. We will have to wait for his
first budget to see if he has the capacity to surprise.

Postscript: We have since said goodbye to Martin Jol and now have Juan de Ramos buying players like confetti. Last night's (15/9/08) match against Aston Villa was a disappointment going down 2-1 at White Hart Lane.

Credit crunch?

In the UK the banks have been racking up bad debts on credit card lending. Easy credit was extended because it was so profitable. The banks have called for borrowers to
be responsible and actually pay the money back. It is surprising how difficult this
has been given the levels of record employment in the UK economy. For instance,
HSBC lifted its British unsecured bad debt charge by 5 pct to £380m
for its 2007 interim results. Obviously, future growth in the British economy will be
affected if the banks cut down their lending in this area.

Increased taxation means more work for accountants?

Does an increase in UK business taxes means more work for accountants? I suppose that
they hope so. The Institute of Directors is a bit concerned about the introduction of supplementary business rates and IoD secretary general Miles Templeman is worried that a small increase in normal business rates could lead to the closure of viable enterprises. This
follows the recent Lyons report on the issue. There is the feeling in political circles that
the burden on council tax payers has reached its maximum and now in is the time to
tax business enterprises.
Natalie Evans of the British Chambers of Commerce said business could be hit by an extra
tax of £1.5bn.
Changing the subject it is sad that ICI is being acquired by the Dutch group Akzo Nobel. It
reminds me of the title "Selling England by the Pound". The UK is up for sale and BAA has shown some of the pitfalls of foreign owners with 2006 investment being reduced so as
to pay off the borrowings. And letting foreign state owned enterprises buy up British
companies is insane. I know we let French state controlled group EDP buy up London Electricity
but letting Middle East and Chinese state agencies do the same is fraught with problems.
P&O provided significant support during the Falklands War but would it do the same
in future with its Dubai owners. I suppose the British government could nationalise its
way out of trouble.

Accountancy Institute criticises HMRC.

The accountancy body Institute of Chartered Accountants in England and Wales (ICAEW) has criticised UK state revenues collection agency HMRC over the delays in VAT registrations.
These are running at around three months and new companies find it difficult to trade without
one. The ICAEW wants the HMRC to pay compensation and I suppose pigs will fly before that
happens. I get the impression that HMRC just wants to rake the money in.
The VAT delays are due to more checks against fraud. HMRC says these are essential
but promises there will be a plan to improve the situation.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/13/cnvat113.xml
The missing trader fraud (carousel) even distorted UK trade statistics with mobile phones. for instance being bought VAT free in Europe and then eventually being sold back to
the continent. Apparently, it was costing the Treasury £5bn a year. Nice one Gordon Brown!!
http://politics.guardian.co.uk/eu/story/0,,2049661,00.html

Friday afternoon - Carlos Tevez seems to be wrapped up

Dear Readers, it looks like Carlos Tevez, who seemed to have played for but not owned by
West Ham, is on his way to Theatre of Dreams. I don't know how he will fit in with the
other stars in the forward line while the midfield and defence seem a bit shakey. I have made
a sporting bet that Man Utd will not win the Champions League. I know this is not very loyal
but I suppose reflects recent experience.

Blogs: I have been looking at the competition

I suppose this blog is a bit monochrome without the use of a blizzard of nifty graphics.
I have been reading the US one TPM Muckraker and apparently it brings in quite a
bit of moolah through advertising. Ranting about Gordon Brown, Manchester United
and accountants is probably not much of an advertising proposition, so this blog is
adopting a kind of public service remit for the moment.
In his mission statement Gordon Brown says:

"Every child should have the best start in life, that everybody should have the chance of a job, that nobody should be brought up suffering in poverty. I would call them the beliefs that you associate with civilisation and dignity."
Youth unemployment is higher now in Britain than it was in 1997 despite Mr Brown's New Deal
programme. As for a good start in life don't go to some schools round here.

Gordon Brown's ENRON economics

Dear Readers, I point you to a brilliant article by economist Liam Halligan in last week's
Sunday Telegraph, which describes the ENRON economics of Gordon Brown, our esteemed
former Chancellor and now Prime Minister of the divided United Kingdom. ENRON was
the Texas-based energy company, whose collapse led to a major tightening of US accounting
standards in America. Gordon Brown went on a deferred spending spree using PFI projects
such as building hospitals, schools and prisons (!) but letting other generations pay for them.