[Finance] The Budget March 3rd 2021.

[Hampster Gull]

For the next couple of years tax rises aren’t the answer, borrow big and borrow long.

 

[Change at Barnham]

Where are they marching to?

 

[Beach Hut]

Rumours going around we will all be given a £150 voucher to spend in the shops when they re-open, shop out to help out (and add another £9b to the ever increasing debt pile)

 

[nicko31]

Rumours going around we will all be given a £150 voucher to spend in the shops when they re-open, shop out to help out (and add another £9b to the ever increasing debt pile)

I thought this was a joke, maybe it isn't. The public has loads of dough saved up, its not needed...

 

[Elbow750]

Hope its better than the £50 voucher to fix up your old bike scheme, and the Green Homes Grant for insulation. Never got the first and still waiting for the second (applied Sept 2020).

 

[schmunk]

Rumours going around we will all be given a £150 voucher to spend in the shops when they re-open, shop out to help out (and add another £9b to the ever increasing debt pile)

Get it spent!

https://www.yelp.com/search?find_desc=Adult+Shops&find_loc=Brighton+och+Hove

 

[Elbow750]

Rumours going around we will all be given a £150 voucher to spend in the shops when they re-open, shop out to help out (and add another £9b to the ever increasing debt pile)

Hope its better than the £50 voucher to fix up your old bike scheme, and the Green Homes Grant for insulation. Never got the first and still waiting for the second (applied Sept 2020)

 

[dazzer6666]

I thought this was a joke, maybe it isn't. The public has loads of dough saved up, its not needed...

Agree.....huge pent-up demand, but equally there are so many households that are struggling. Too much admin to means-test it, so could see it happening.

 

[clapham_gull]

Rumours going around we will all be given a £150 voucher to spend in the shops when they re-open, shop out to help out (and add another £9b to the ever increasing debt pile)

I'm not convinced that's required. I'm not one for the shops to be honest, but I know many who have been lucky enough to keep their jobs who will go shopping crazy.

 

[Weststander]

It was ridiculous when in 2015 George Osborne reduced Capital Gains Tax to 10% and 20% on non-residential property and 18% / 28% on residential property. This was a favour to his city mates and Tory Party donors who have shares, property and the like.

Now that the country has a stack of borrowing to repay it would therefore be a dereliction of duty if Rishi didn't align CGT with income tax rates.

As for other taxes, he can't increase Corporation Tax or risk a flight of capital from the UK, post-Brexit. However, he's ignored the 3 million directors / gig economy so I wouldn't put it past him to increase the rate of tax on dividends.

I suspect that the next budget after this one will signal significant tax increases on dividends and national insurance paid by the self employed (the latter, something very briefly hinted about last April). With the self employed then having access to the full array of state benefits available to the employed/ex-employed.

 

[LamieRobertson]

Agree.....huge pent-up demand, but equally there are so many households that are struggling. Too much admin to means-test it, so could see it happening.

Exactly

Ps if he wants to give me a voucher on budget day that’ll be kind as it’s my birthday

 

[Shropshire Seagull]

Purely from a self-interest position as one of the minority that have had to dip into my SIPP this year [due to snuffed income], this might benefit:

Jon Greer, retirement policy expert at financial planners Quilter, said: “The Chancellor could announce in the Budget that he will waive the MPAA triggers so that someone taking pension income flexibly this tax year would retain the normal £40,000 Annual Allowance. In addition, the government could restore the MPAA back to the pre-2017 level of £10,000 per annum. This would alleviate the risk of hitting the MPAA for most people with earnings of less than £100,000.”

 

[portslade seagull]

I don't know but tax rises will be very unpopular.
Johnson wants to be liked and cannot make decisions that will make him unpopular he wants to spend money to make people like him.
My guess is that it will look like the best budget of all time but the bad parts will be very cleverly hidden (even more than usual) and will take an economic genius to work it out.
Sunak will speak as if everything is fine and how great they are when in fact it very much is not.
It is very tricky though because we have got to get the money in and the debt down somehow but we have only just had 10 years of austerity.
Johnson will spend big time to boost the economy but look out for the loopholes.
My biggest wish is that I want big companies who avoid tax to have to pay and multi millionaires who do the same to pay up too, they keep promising that but never do it.

Can I add to your wish that Google, Amazon and the like are also taxed properly

 

[Moshe Gariani]

Where are they marching to?

Quite. In any case, I didn't go on the first two marches so I won't be joining this third one.

 

[beorhthelm]

Can I add to your wish that Google, Amazon and the like are also taxed properly

they are taxed properly, on profits where they book them. they just dont do that here, so dont get taxed much here, like say Sony or VW. what you mean is you want them taxed differently, have a special tax just for them.

 

[Official Old Man]

As a self employed shop keeper I'm waiting for the next round of SEISS which should have been announced a while back but we're having to wait.
If anyone is in any doubt about the money the government are spending on the Job Retention Scheme check out the list of companies claiming. Nearly 750000 claiming wages for staff. That's companies, not staff which will be a lot lot higher. I'd guess nearly 10 million wage packets paid by the government every week. But not just paying out, there's no PAYE coming in from that.
Add to that VAT. My returns this past year have been nearly zero. In fact my next return due soon will be pennies as I've very little income. Now multiply that by all the shops closed.
But what of the future? Yes, many people have money burning holes in their pockets and cant wait to spend it but no where near what the country has lost over the past year.

 

[Pavilionaire]

As a self employed shop keeper I'm waiting for the next round of SEISS which should have been announced a while back but we're having to wait.
If anyone is in any doubt about the money the government are spending on the Job Retention Scheme check out the list of companies claiming. Nearly 750000 claiming wages for staff. That's companies, not staff which will be a lot lot higher. I'd guess nearly 10 million wage packets paid by the government every week. But not just paying out, there's no PAYE coming in from that.
Add to that VAT. My returns this past year have been nearly zero. In fact my next return due soon will be pennies as I've very little income. Now multiply that by all the shops closed.
But what of the future? Yes, many people have money burning holes in their pockets and cant wait to spend it but no where near what the country has lost over the past year.

But it's worse than that. Not only will corporate tax revenues for y/e 5th April 2021 be low because of Covid but those business that make losses will be relating those back to the previous year, so the government will have to pay out tax revenue they banked last year, which means more borrowing. The government's cashflow re corporation tax is going to be completely shot.

 

[Weststander]

Can I add to your wish that Google, Amazon and the like are also taxed properly

A good idea I recently heard discussed by experts was for overseas multinationals operating in the UK such as Dell, Stabucks, Google and Amazon to pay the higher of full UK corporation tax (this is the tax they suppress at present with ‘franchise fees’ paid to their ROI, Lux or Netherlands holding companies, wiping out UK taxable profits), or a tax on a percentage of UK turnover eg 2%.

Annoyingly, the latter might simply be passed on to UK consumers, so that those companies are little affected.

 

[WilburySeagull]

they are taxed properly, on profits where they book them. they just dont do that here, so dont get taxed much here, like say Sony or VW. what you mean is you want them taxed differently, have a special tax just for them.

They have created artificial entities to avoid taxes where their real turnover is. Amazon's actual turnover in uk is huge but not apparently in their books. Tax on turnover is the way forward.

 

[beorhthelm]

They have created artificial entities to avoid taxes where their real turnover is. Amazon's actual turnover in uk is huge but not apparently in their books. Tax on turnover is the way forward.

what happens when the company's profit margin is less than the tax rate?