Friday 29 June 2007

Gordon's reshuffle






Dear readers, I thought I would share with you my thoughts, albeit limited, on the reshuffle


of Gordon Brown's cabinet, which mainly has responsibility for English affairs given the


devolved administrations in Wales and Scotland and given the increasing role in foreign affairs


of the European Affairs. I know this is a bit off the accounting brief but it is Friday afternoon


and you are probably in need of light relief.


Is the 41 year old David Miliband looking forward as Foreign Secretary to be squashed by the Americans, bored by the Germans and terrified by the Russians? David has worked tirelessly on the Green agenda and thought that nuclear power was not the whole answer to our future energy needs. Perhaps we will be able to buy in the nuclear power from France and go without the fag of building the actual stations. Apparently, David saved quite a bit of inheritance tax with a nifty deed of variation in the past.
Ruth Kelly has had more ministerial posts than hot dinners. Recently she got mauled in the
House of Commons over HIPS and she got a real duffing-up at Education. I suppose Transport
is a nice cosy billet and making decisions over airport expansion or Crossrail will be a piece of
cake for someone of Ms Kelly's talents.
The new Chancellor is the old one Gordon Brown, who keeps on intimating that he went to
a local comprehensive, when it was a selective school. He has put in his Edinburgh mucker
Alistair Darling as Chancellor. Darling's masterly inaction at Transport shows how it can be done for Ms Kelly. Gordon's challenge will be to prevent the boring bits of sucking up to foreigners
as Prime Minister and to further his first love of further expanding Tolley's Guide.
Gordon has been the accountant's best friend with the constant changes and increased taxation. For instance, if you need an accountant in Birmingham, this will help you out. Although Gordon has probably turned your pension into mush, he is a formidable politician since he actually believes in what he is doing. Usually, the Tories are unable to lay on a glove on him since they don't understand what he saying, since it can be a mass of incomprehensible detail. Don't mention the UK's productivity growth or the current account deficit, Gordon will only get annoyed and put in new taxes. Congestion charges on cars will probably come after the next election.
Obviously, I am probably doing these ministers a great disservice. They probably have amazing ability to get where they have. I was impressed once seeing Alistair Darling talking to
Vauxhall workers at Ellesmere Port in a very difficult situation. He was quite brave. Sorry,
I have'nt mentioned other ministers but I don't envy their lot. Tony Blair's main ability
was not to get worried about disasters such as Iraq, cash-for-honours and Ecclestone. The
new administration will miss this ability.

Tuesday 26 June 2007

St Albans Continued

Another good pub in St Albans is the Goat Inn. Pubs in St Albans and everywhere else in England will be smoke free from July 1st 2007. It is thought that pubs will be able to compensate with food sales. The legislation will affect all businesses not just pubs.
For instance, there will be a fixed penalty of £200 for employers covering failure to display a no-smoking sign.
Perhaps I will be able to go to the boozer for a sneaky pint without being incriminated by the
smell on the clothes. Or will I miss out on possible romantic opportunities by not smoking?
Apparently, smokers are getting to know each other outside pubs in the Emerald Isle.

Taxation on small companies - thanks Gordon

I have just been reading a newletter from Gilberts Chartered Accountants (based in St Albans), which notes that in the infinite wisdom of Gordon (Brown, clearly), small companies will pay higher tax rates than bigger companies.

What a bummer for the small business! Gilberts highlights the possibility that it could be beneficial for many small limited companies to go back to their original status as a sole trader. They are suggesting that at higher profit levels, incorporation generally remains worthwhile. However, for those businesses trading as a limited company showing a profit of £50,000, a saving of nearly £4000 could be made - and more if some of the profits are left in the company.

Gilberts do point out that there are other benefits to be gained from trading through a company, not just in terms of tax, so it is worth talking to your accountant about you particular circumstances.

Following this public service announcement, I would like to note that St Albans is a very interesting city with the oldest pub in England, which is called The Fighting Cocks.

Welcome to my blog

Hi all,

Just a quick post to welcome you all to my new blog in which I hope to be able to highlight important issues relating to your money, and accounting in particular.

As we all know, taxes change, legislation changes and advice changes from one day to the next. I will try to highlight issues that are important to me, in the hope that they will be of some importance or interest to you. If you don't like accountancy and don't like accountants, then perhaps this blog is not for you(!) but if you do then please read on!

Bye for now,

The Fletch