Connect with us

Business

WHAT WILL A POTENTIAL CUT IN VAT MEAN FOR BUSINESS OWNERS?

The big question on everyone’s lips right now is will the Chancellor Rishi Sunak cut VAT to stimulate spending and boost the post-Coronavirus economy? Steve McCrindle, VAT Partner with Haines Watts discusses some of the implications for business owners.

During the last economic recession, we saw reductions in the standard rate of VAT and that could well happen again post-Covid19. It is something that the International Monetary Fund (IMF) has already recommended. Some articles in the Press are predicting that the rate of UK VAT may even be cut to as low as 15%.

We have already seen various countries bringing in measures to stimulate the economy through VAT reductions. There have been VAT reductions in a number of countries including Germany, Austria, Norway, Moldova and Kenya, usually temporary reductions with some aimed at stimulating parts of the economy those countries are renowned for.

For example, Germany has announced an intended €130billion COVID-19 stimulus package, including a cut in the standard rate of VAT from 19% to 16% and the reduced VAT rate of 7% to 5% both from 1 July to 31 December 2020. This measure will cost Germany €20billion.

Germany had already announced a cut in the VAT rate on restaurant and catering services from the standard rate of 19% to the reduced of 7% between 1 July 2020 and 30 June 2021, and which will now additionally benefit from the reduction to 5% for the last six months of 2020.

Steve McCrindle

There are predictions that a potential reclassification of the VAT rate in the UK could be introduced for those sectors which have been hit the hardest, such as hospitality with a reduced rate for hotels, restaurants and cafes.

In the UK, the Government has already brought in other reliefs for Personal Protection Equipment (PPE) and similar goods to help stop the spread of Coronavirus.

More recently I helped a client with these particular reliefs. My client had bought PPE from China and was to supply this on to an NHS Trust. In normal circumstances, that PPE would have been potentially subject to Customs duty as well as Import VAT, the duty being an irrecoverable cost.

The PPE would also have been subject to VAT on the onward supply to the NHS Trust, which in turn would likely not have been able to recover that VAT so charged. However, a further relief meant my client was also able to supply the PPE to the NHS Trust at a zero rate, i.e. VAT free, meaning the NHS Trust did not incur an irrecoverable VAT cost.

These are temporary reliefs implemented by the Government to enable PPE to be brought into the country with the least economic and physical barriers, in order to get it to where it is needed soonest.

So, if you use this and the German examples, it’s easy to see how a VAT rate cut could stimulate spending power and profit, and get the economy rolling again quickly. I believe the Government will do it.

We’ve already seen things starting to move in the construction industry after the Government allowed the sector to return to work earlier than the rest of us. There was a new VAT measure which was due to come into force for the construction industry on October 1st this year. That has now been postponed for five months to allow the sector to focus on getting itself going again.

 

What do businesses need to consider if the VAT rate changes?

There are a number of things that business owners need to consider if the rate changes suddenly. This includes, amongst others, how they will calculate the new rate if prices are already inclusive of VAT, as is the case for most retailers. They will also have to decide whether they pass on any benefits to customers.

Changes to accounting software will also need to be made as well as working out how deposits paid prior to the rate change, but invoiced after will be dealt with. The same goes for any sales made prior to the rate change but invoiced afterwards.

One thing is certain, the VAT rate change certainly needs to be substantial for it to significantly impact consumer spending and buying habits, and stimulate the economy.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

TOP 5 LINKEDIN PROFILE OPTIMIZATION HACKS FOR ASPIRING BANKERS

According to Firmex, finance professionals cannot afford to be not on LinkedIn. A significant number of organizations acquire talent in the financial industry through LinkedIn.

Especially for aspiring professionals, your internet presence matters a lot as recruiters are most likely to search your name on the internet before making a decision about your application.

As an aspiring banker on a professional platform, you should consider changing the outlook of your profile, to garner the recruiter’s attention. Your profile is unlikely to get noticed if it is out-of-date and inaccurate.

Here’s how you can optimize your LinkedIn profile:

 

Headline

Here’s an example of a good headline for a banker:

“Aspiring Banker majored in finance specializing in forecasting and risk management best practices”.

Scrolling through most professional profiles for bankers on LinkedIn, these individuals pay little attention to the headline.

A well-optimized headline gives the recruiters reasons to click on a profile. Though you just have 120 characters to make it great and charm the recruiter.

You can include pointers on what you are trying to achieve as a banker, or include your major as a way of connecting the skills-gap. If you are an MBA degree holder, then you can reflect this on your headline along with the major.

Though here are a few things you should know about creating a headline:

  • Be professional and avoid writing words like “superstar worker”, “top performer”, etc.
  • Be discreet with your job search, don’t directly mention “looking for a job”, “unemployed”, etc.
  • Research on other professional’s headlines with a network presence.
  • Include the usage of strong adjectives/action verbs.

 

Connections

On LinkedIn, develop meaningful connections with professionals and recruiters. With little effort, you can significantly increase your number of connections.

However, having 5000+ connections is not valuable if they are irrelevant to your interests. Hence, keep your connections limited to professionals in the finance industry.

  • Connect with individuals that are relevant in the finance industry and send a personalized message along with the connection request.
  • You are most likely to get ignored if you mindlessly send out requests. Though LinkedIn advocates being active, you should derive an invitation strategy for effective network expansion.
  • Message recruiters that are hiring professionals in the finance industry and ask them for advice on how you can further optimize your profile.

 

Professional Experience

Your LinkedIn profile works as a digital resume. It should give an idea of a constructive career progression. Hence, LinkedIn profile optimization becomes quite important.

  • Write points in a bullet form, don’t include long paragraphs.
  • Mentioning your roles and responsibilities isn’t ideal. Construct the points in a way that showcase all your accomplishments & contributions.
  • Add your projects separately; do not add them in the career highlights section.

 

Keywords

As with any other search engine, recruiters are dependent on the algorithm to show them the best profile as per their searches. Based on a certain set of relevant keywords in your industry, recruiters will try to search for candidates on LinkedIn.

Here’s how you can use keywords to optimize your profile:

  • Research: Thoroughly research the keywords that are of prime importance in the finance industry. Check the profiles of other professionals on LinkedIn and refer job postings to gain an understanding of how to sprinkle these keywords in your profile.
  • Section: Utilize each section efficiently of your LinkedIn profile to showcase your contributions and achievements. Don’t just stuff your profile with contextual keywords. In the end, your profile should foremost be easily readable.
  • Industry and Skills: Update the industry in your profile and include all the skills you are familiar with. Further, you can even include skills that you are not familiar with. Let’s say you need to include “Budget Forecasting” in your profile and you have not had any real-life experience with it. You may write it as “Interested in gaining experience in budget forecasting”.

 

Skills & Recommendations

Recruiters look for professionals who can deliver, hence your profile should include the skills that are highly relevant to your targeted profile. Though in the banking industry recruiters search for general skills as well. So, make sure your profile is a match for both.

Further, just listing your expertise is not going to be enough. Get your mentors, employers, etc. to write you a stellar recommendation. If you provide credibility for your skills then it can do wonders for you.

 

Final Word

  • Just as the headline of your profile, your picture is equally important. Make sure you use a professional-looking photograph.
  • Continue to engage with your connections through comments and professional messaging.

As you are a banking professional, your profile is probably going to end up looking like all about your core competencies, However, it is important to include a few pointers about your hobbies that describe your personality as well.

 

Continue Reading

Business

HOW MILLENNIALS CAN GET AHEAD WITH THEIR MONEY

Granville Turner, Director at company formation specialists, Turner Little. 

 

Millennials are often painted as globe-trotting creatures that spend more money on avocadoes than their future. But that can’t be further from the truth. Millennials tend to be good savers, at least compared to other generations. Industry data shows that more than 70% of millennials have started putting money away for retirement and beyond.

“Millennials still struggle with investing. Often because they feel they don’t know enough about the market, but it’s never too late to invest in your understanding. It’s a great way to make your finances work harder for you,” says Granville Turner, Director at company formation specialists, Turner Little.

Here are some things you can start doing now, or preparing for, to set yourself up for a future of learning and investing:

 

Start early

The most apparent advantage millennials have over older generations is the luxury of time. Whilst everyone can weigh up the risks and rewards of investing, you’re particularly well-placed to see a solid return on your investments.

 

Challenge risk

When you invest money for longer, you can become less phased by the ups and downs and be able to view inevitable declines as opportunity instead. It’s better to look at yearly or even longer figures for a more accurate reflection of performance.

 

Put your money to work 

Money that sits in a savings account, uninvested, is almost certain to lose value over time due to inflation, or a creeping higher cost of goods and services. If your money is growing or earning you a return, it’s going to help you reach your financial goals faster.

 

Start small

Many millennials believe you need to have a serious amount of money to start investing. But in reality, even small contributions can build over time. The important thing is to start early, and make it a habit.

If you’re ready to start having the right conversations about the future of your finances, get in touch with us today. With years of knowledge and expertise, we’ll be able to assist with any enquiries, no matter how complex.

 

Continue Reading

Magazine

Partner Events

Trending

Business17 hours ago

TOP 5 LINKEDIN PROFILE OPTIMIZATION HACKS FOR ASPIRING BANKERS

According to Firmex, finance professionals cannot afford to be not on LinkedIn. A significant number of organizations acquire talent in...

Wealth Management19 hours ago

TAPPING INTO THE DATA GOLDMINE: THE FUTURE OF DATA-DRIVEN CREDIT MANAGEMENT

Willand Brienen, product owner at Onguard   Data, and the insights it reveals, can offer organisations a vast number of...

Finance19 hours ago

ENLISTING TECHNOLOGY TO HELP FIGHT FINANCIAL CRIME

By Rachel Woolley, Director of Financial Crime Fenergo   Million-dollar properties, private jets and parties on luxury yachts with celebrity...

Banking19 hours ago

TRANSFORMATION IS NON-NEGOTIABLE FOR BANKS LOOKING TO DELIVER VALUE IN A POST-PANDEMIC WORLD

Andrew Warren, Head of Banking & Financial Services, UK&I, Cognizant   In addition to responding to changing customer expectations, higher...

Business19 hours ago

HOW MILLENNIALS CAN GET AHEAD WITH THEIR MONEY

Granville Turner, Director at company formation specialists, Turner Little.    Millennials are often painted as globe-trotting creatures that spend more...

STRUCTURED DATA STRUCTURED DATA
Business19 hours ago

STOPPING THE CHARGEBACKLASH

By Gabe McGloin, Head of Intl. Merchant Sales @ Verifi   Brands have been encouraging consumers to move their shopping...

Business20 hours ago

CONSUMERS ARE READY FOR BIOMETRIC PAYMENT CARDS

Lina Andolf-Orup, Head of Marketing at Fingerprints   We’ve come a long way in the evolution of digital payments. Magnetic...

Finance2 days ago

WHY IT PAYS TO MAKE CYBER SECURITY PART OF THE M&A DUE DILIGENCE PROCESS

Anurag Kahol, CTO at Bitglass   Mergers and acquisitions (M&As) enable business leaders to adapt fast to new opportunities. Whether...

Interviews2 days ago

GOING FOR INVESTMENT IN CENTRAL EUROPE: START-UP LIFE OUTSIDE A TRADITIONAL TECH HUB

A Q&A with Bence Jendruszak, Co-founder and COO at SEON   At what stage did you realise you were going...

Banking2 days ago

CLOUD ALLOWS BANKS TO BASK IN CHANGE

by: Elliott Limb, Chief Customer Officer at Mambu   As a new era of banking takes off, the cloud is...

Finance4 days ago

COVID-19 WILL DRIVE FINTECH ADOPTION – BUT AT WHAT COST?

By Ian Bradbury, CTO – Financial Services at Fujitsu UK   Even before the impact of Covid-19, the financial services...

Business4 days ago

HOW TECHNOLOGY IS POSITIVELY IMPACTING COMPLIANCE AND HOW IT IS HELPING TO STREAMLINE PROCESSING TIME AND COST FOR FIRMS

By Joe Woodbury, Director – Investment Management Solutions at Lawson Conner (part of IQ-EQ)   Private Equity & Real Estate...

News4 days ago

TECHCOMBANK AND COMPASS PLUS CELEBRATE 15 YEAR MILESTONE IN BANKING PARTNERSHIP

Since issuing the first Visa card 15 years ago using solutions provided by trusted partner Compass Plus, Techcombank, one of...

CHALLENGER BANKS CHALLENGER BANKS
Banking4 days ago

HOW TO MANAGE OPERATIONAL RISK AND ACCELERATE BANKING INNOVATION IN TIMES OF RAPID CHANGE

Danny Healy, financial technology evangelist, MuleSoft   The unprecedented disruption of COVID-19 has changed how consumers interact with banks; there’s...

STRUCTURED DATA STRUCTURED DATA
Finance4 days ago

WE NEED FINTECHS NOW MORE THAN EVER

Lubaina Manji, Senior Programme Manager, Nesta Challenges   Whilst the sun is far from setting on the COVID-19 pandemic, predictions...

SMALLER BANKS SMALLER BANKS
News4 days ago

XALQ BANK SUCCESSFULLY COMPLETES IMPLEMENTATION OF TRANZAXIS

As part of a strategic project to modernise its infrastructure, Xalq Bank, one of the leading banks in Azerbaijan, has...

Business4 days ago

WHAT WILL A POTENTIAL CUT IN VAT MEAN FOR BUSINESS OWNERS?

The big question on everyone’s lips right now is will the Chancellor Rishi Sunak cut VAT to stimulate spending and...

Wealth Management7 days ago

COULD YOUR PET BE INVALIDATING YOUR CAR INSURANCE?

Not securing your pets ahead of a long drive could void your policy 10 things you need to be aware...

Finance1 week ago

WHY AN AMBIGUOUS ECONOMIC FUTURE IS POINTING FINANCE TOWARDS ALTERNATIVE SOURCES OF DATA

Omri Orgad, Managing Director, Luminati Networks   Every market, every investor, and every business owner in the current climate is...

banks banks
Finance1 week ago

ACCELERATING THE TRANSFORMATION OF THE FINANCE SECTOR

By Scott Wilson, Director of service at eFax   Technological advancements have always played a key role in pushing boundaries...

Trending