Who will be the next UK prime minister (Conservative leader)

The idea that VAT is passed on to the consumers is just not what happens in the real world unless you’re a large corporation. VAT hurts small and new businesses the most.

There’s no way I can charge £10 for a product and suddenly say to my customers they will now pay £12 if I’m a new business that just hit the VAT threshold. Small and new businesses don’t have the margin to compete on price so they end up eating the VAT in most cases.

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Maybe increase the £ school fee for Chinese students (or add VAT to their school fees), I see a lot and they seem pay a lot less in the UK than the USA. More students from China than from Wales!

More Chinese students are applying to UK universities in 2022 (studyinternational.com)

It depends on whether the consumer or the business is more desperate. If the consumer is more desperate, then the business will pass on most of the VAT to the consumer.

If the business is more desperate, then the business will suck up most of it.

Weird as it sounds, many European uni already have different requirements for foreign non-EU non-Switzerland student.
Then additional requirements for China and Indian students due to many of them having diploma mill certificates.


Pound is close to parity with dollar. I never thought I’d see this day…

It’s fallen 3.5% Friday U.S. time to 1.086. That is nearly unheard of for any major currency. Kaboom.

Might be sooner than 1-3 years.

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Currency reaction to the big tax cuts, will see if tax cuts will help all and not just high income people. Its a big income tax cut for higher incomes.

a 3.5% move never happens due to tax cuts. euro depreciated 1.5%, AUD lost 1.8%. it’s not just da pound, but it’s the worst today.

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The pain of paying suppliers now with a tanking pound :persevere: they all want dollars!

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An online gig I have pays in sterling. It’s painful. I’m considering quitting it.

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Same here. I’d rather be paid in Rwandan francs at this point. Or rubles.

Here is a brief outline of the mini Budget announced on Friday, looks to be good for businesses.

Business

Corporation Tax
It was announced in the March 2021 Budget that there would be a 6% increase in the Corporate Tax rate from 19% to 25%. However, in a move that the new Prime Minister has said is key to helping attract investment into the UK, this has been abandoned.

IR35
From April 2023 theIR35 rules introduced for the public sector in 2017 and the private sector in 2021 will be repealed, meaning that end users of contractors engaged through the contractor’s personal service company will no longer be responsible for assessing whether the contractor should be taxed as an employee. This will revert to being the responsibility of the personal service company providing the contractor.

Personal
Income Tax
From April 2023, there will be a single higher rate of 40% on Income Tax. This means the additional rate level will be scrapped. Also, a year earlier than planned, the basic rate will be cut to 19% from next year which “means a tax cut for over 31 million people”. The rate of Income Tax charged on dividend income was also increased by 1.25%. This will be reversed from April 2023, so that dividends will once again be taxed at 7.5% and 32.5% for basic-rate and higher-rate taxpayers.

Stamp Duty Land Tax
Up until today, there was no Stamp Duty Land Tax (SDLT) payable on the first £125,000 of a property’s value in England and Northern Ireland. This level has been doubled to £250,000 with effect from today (23 September). First time buyers currently do not pay SDLT on the first £300,000, but this will increase to £425,000 and the level at which they can claim relief rises to £625,000 from £500,000.

National Insurance
As with corporation tax, National Insurance (NI) increase has been reversed. The turnaround will be happening from 6 November and is largely to benefit top earners by about £1,800 a year, while those on lowest incomes will be about £7 better off.

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yeah…Tories

They just torpedoed the pound thus making most people immediately poorer.
Way to fuckin go!

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I mean this was simply a reversal. We all pay the same NI rate 1.25 increased, now it just reversed the increase. Now we all pay the same as before. Of course it’s less when you make less.

I don’t have love for the torries as they are as incompetent as they come but this seems like a weird criticism of them.

Truss seems to be doing marvellously:

https://www.news.com.au/finance/economy/world-economy/what-were-you-thinking-uk-prime-minister-liz-truss-grilled-on-countrys-financial-turmoil/news-story/7d9cb64d28d85cc934c71c713425a525

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