Antony on the road (6)

Sunday 22 Nov 08 - It seems that a reduction in VAT has emerged as the favourite for the main weapon to be used by the Government to stimulate the economy. (http://news.bbc.co.uk/1/hi/uk_politics/7744273.stm) I am a little sceptical as to how effective this is going to be as retailers are already falling over themselves to cut prices and tempt people to spend. I still think that lack of confidence driven by fear of unemployment will be the main reason for people not spending and unless firms boost cash flow by keeping the benefit of this VAT cut to themselves (for which they will be castigated by all and sundry) I can't see the cut doing much to address this. Let's see what tomorrow will bring.

Antony on the road (5)

Friday 21 Nov 08 - No events to attend today so a good chance to catch up with paperwork and the latest thinking of the media pundits on Monday’s pre budget statement. (No mention of client work I hear you say - well the reality is that client work is a priority whatever else I do and therefore continues to be dealt with expeditiously regardless of the other things that I do). Most seem to agree that it was the right thing although more and more were realising that it would require significant tax increases further down the line. (http://news.bbc.co.uk/1/hi/uk_politics/7741397.stm) Most of the suggestions (leaks?) coming out so far indicate that the Government is looking to put money in the hands of consumers to encourage them to spend. Maybe this is the answer although my own view is that it is lack of confidence and job security rather than lack of money that is stopping people spending. I would have though that a package of measures to help business cash flow and encourage job conservation would be cheaper and much more effective but I guess I am only an accountant so what do I know?

Antony on the road (3)

Wednesday 19 Nov 08 - Attended a Tax briefing on investigations with Baker Tilly (http://www.bakertilly.co.uk/)in Guildford which among other things concentrated on the new penalty regime and appeals process.My head was buzzing as they rattled through a number of changes seemingly designed to simplify and improve matters, but given the number of issues that are yet to be clarified by HMRC would appear to mean that a considerable about of bedding in is going to be required.I freely admit that I am glad that I don’t do tax. Obviously I am aware of the major issues affecting businesses and am able to manage tax advisors on behalf of clients but I don’t provide advice or deal directly with HMRC on a day to day basis. Our tax system is in dire need of simplification, not least in that it would provide some certainty to taxpayers, advisors and HMRC frontline staff themselves. However given the need that the Government has for cash I can’t see it happening for some time to come.However it was great opportunity to catch up with a number of small practitioners, all of whom were sceptical that Alastair Darling would be able to do much to get his billions through quickly enough to make a difference in the short term.