I'm just incredulous that Gordon Brown and Alistair Darling think that a 2.5% cut in VAT is going to kick start the economy by getting consumers spending again.
Firstly, retailers can't even shift the stuff on 20% off super duper mega discount splurge days.
Secondly, has anyone in the Government ever had any experience actually running a business? If so they would realise that the administrative cost - not to mention the sheer hassle - of changing all their prices (including the cost of re-printing catalogues and menus etc) is an absolute nightmare. And is any retailer really going to reduce their price from £9.99 to £9.78? I think not.
A friend of ours is the retail director of one of Britain's biggest chains. He has 20,000 different products on sale at 300 stores. We've already offered to send our children over to help out with all the re-labelling...
Showing posts with label VAT. Show all posts
Showing posts with label VAT. Show all posts
Tuesday, 25 November 2008
Sunday, 5 October 2008
Mrs Angry of Bakewell
Yes, I am ANGRY.
Why?
Because today a good entrepreneurial friend of mine has told me that he is putting his company into a CVA (Company's Voluntary Arrangement).
Is this because his business is loss making?
No.
It's actually a great British manufacturing company, which turns over getting on for £500k and is profit making every year.
The reason is that the business has fallen behind with their VAT. But instead of HMRCE being willing to negotiate terms, they are forcing the company into the action because of continued threats to send in the balliffs.
OK, OK I realise everyone has to pay their VAT, and if people don't it's not fair on all the rest.
BUT at a time when literally BILLIONS of pounds are currently being pumped in to try to make Britain a more enterprising culture, and encouraging people to go into business, WHY OH WHY are we condemning successful existing businesses to death in this way?
(Only about 5% of companies which set up in the UK go on to become profitable companies like my friend's)
Gordon Brown, Peter Mandelson, PLEASE - you guys need to sort out a more supportive solution for companies that get into trouble rather than just condemn them to death.
Call off the dogs and give these entrepreneurs some help in their time of need - so they can survive and be part of this country's future - not thrown on the scrapheap as another insolvency statistic.
Why?
Because today a good entrepreneurial friend of mine has told me that he is putting his company into a CVA (Company's Voluntary Arrangement).
Is this because his business is loss making?
No.
It's actually a great British manufacturing company, which turns over getting on for £500k and is profit making every year.
The reason is that the business has fallen behind with their VAT. But instead of HMRCE being willing to negotiate terms, they are forcing the company into the action because of continued threats to send in the balliffs.
OK, OK I realise everyone has to pay their VAT, and if people don't it's not fair on all the rest.
BUT at a time when literally BILLIONS of pounds are currently being pumped in to try to make Britain a more enterprising culture, and encouraging people to go into business, WHY OH WHY are we condemning successful existing businesses to death in this way?
(Only about 5% of companies which set up in the UK go on to become profitable companies like my friend's)
Gordon Brown, Peter Mandelson, PLEASE - you guys need to sort out a more supportive solution for companies that get into trouble rather than just condemn them to death.
Call off the dogs and give these entrepreneurs some help in their time of need - so they can survive and be part of this country's future - not thrown on the scrapheap as another insolvency statistic.
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