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Google chief does not ‘know’ his own salary

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Google’s EMEA chief Matt Brittin came unstuck on Thursday (11th February) as he claimed he did not know that exact figure of his annual salary, when he was put on the spot by Meg Hillier of the Public Accounts Committee.

Hillier and her fellow Committee members are scrutinizing Google’s tax arrangements in the UK. The technology giant’s tax settlement with HMRC (Her Majesty’s Revenue and Customs) involves a controversial £130m back tax settlement which many believe feels way short of what should really be paid.

Brittin took a grilling from the Public Accounts Committee as the angered British MPs pushed him for details of Google’s tax settlements with the UK authorities. Labour MP Hillier and Brittin exchanged heated words as the Google exec claimed he felt the anger from the British public over his company’s tax deal with HMRC.

“Do you really understand the anger, Mr Brittin?” Hillier questioned. “What do you get paid, Mr Brittin?” The Google boss eventually replied: “I don’t have the figure but I’ll provide that figure privately, if it’s relevant to the committee to understand my salary.”

After the initial exchanges Brittin and Tom Hutchinson, the firm’s tax manager, informed the panel that Google pays 20% on its UK profits and that their HMRC settlement was the result of an intense six-year independent audit.

Hutchinson stated that Google paid £2.2bn in corporation tax in 2015 globally, with most of that sum being paid in the United States. The company’s headquarters are in California. He explained, “It’s up to governments to decide where we should be paying that tax. I would love to see the system more simple so we wouldn’t have to come to hearings like this to explain it, but we need governments to work together to develop an overall worldwide system to take that 19% and split it in a simple way.”

The head of HMRC, Dame Lim Homer, also defended their deal with Google, claiming she was confident that, “we have got the full tax that’s due.”

Meanwhile, Labour’s John McDonnell, the shadow chancellor criticised Chancellor George Osborne over the matter. McDonnell said, “It’s time that Osborne got a grip of this situation as it’s becoming a daily occurrence that we read yet another multinational are not paying their fair share in tax meaning other taxpayers have to shoulder the burden. Osborne should use the EU negotiations not to cut the pay of people on low incomes but to get a deal at EU level on tax so that we are getting the tax status of these big multinationals under control.”

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The rise and rise of the tech-savvy sole trader

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Xero’s head of accounting Paul Bulpitt tells freelancers, contractors and sole traders how they can leverage the technology changing the future of tax.

Sole traders make up an ever increasing proportion of the workforce. Some work in creative industries – writers, media people, photographers and designers. Some as management consultants, project managers, programmers or developers. Others as builders, electricians, accountants and beauticians. The range of sole trader businesses gets bigger all the time.

More than three quarters of sole traders say their best working days are still ahead of them. So if you’re a sole trader, or thinking of becoming one, you’re in good company.

In 2016, there’s never been a better time to be a sole trader. Technology has pushed back boundaries and created new opportunities and depending on the type of work you do, you can be based almost anywhere. For example, some sole traders may need little more than a laptop and an internet connection. Others may need tools, supplies or a vehicle, but they’ll still be agile – ready to move wherever their work takes them.

Lightening the load by moving online

One reason why things are looking up for sole traders is because technology has made it easier than ever to do business. Online or cloud-based software has streamlined processes and sped up the exchange of information. For example, you may already be using:

  •       online office tools like Microsoft Office 365 or Google Apps
  •       email services like Gmail
  •       cloud-based file storage and accountancy software
  •       social media to market your services and keep in touch with customers
  •       video conferencing to talk to clients and friends
  •       websites to reach new clients.

It makes sense to move your whole business online as there’s no point being tied to a single computer or desk – cloud-based software gives you the opportunity to work from anywhere with access to your business from any device.

Filing your tax returns online

HMRC has announced its strategy to digitise the taxation process. This year, over 9,500,000 tax returns were filed online, and by the end of the year there will be 10 million people with digital tax accounts – a third of the working population. Everyone will need a digital tax account by the end of 2019. There are plenty of software options out there that can take the pain away – sole traders and small business owners using cloud-based accounting software for example can connect directly with HMRC to upload their annual tax returns, making it a doddle.

For sole traders, managing finances is crucial, and choosing the right business bank account can facilitate easier invoicing, payments, and expense tracking. Consider a dedicated sole trader account to separate personal and business transactions. This move enhances financial clarity and aids efficient tax reporting.

Although the digitisation is a major change to the way HMRC operates, this move to streamline the burden of compliance for small businesses and sole traders is ultimately a good thing, as it will eliminate wasted time and expenditure on inefficient compliance processes. For freelancers and contractors, it means no more of the dreaded paper tax returns!

Find an accountant in the know

Choosing an accountant is like choosing a new business partner. The top things you need to look out for include finding someone with experience in preparing tax returns and financial documents for freelancers or sole traders with a similar revenue to yours and in a similar sector. Since HMRC is going digital, make sure you find someone who is savvy about using cloud-based software. The more familiar you and your accountant is with business technology options now, the easier you will find the future, as cloud-based business processes, big data innovation and digitisation will become the norm.

A digital future
With HMRC’s digital transformation, filing tax returns in the future should make life a whole lot easier for freelancers, while cloud technology . At Xero we believe this automated process will ultimately halve the time it usually takes to file a tax return, saving us all from an exhaustive process and a frustration headache!

How Online Shoppers Can Save Money Through Dealslands

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When we look behind, say a decade back, people in those days usually used to go to brick and mortar stores to shop for things. Online shopping was not that famous and regular thing in those days. With changing days and season, things changed and so do the shopping trends.

In today’s world, shopping is no more a big deal for people. It has been simplified by the online process. So people no more roll trolleys in the stores, pick up items, go to the checkout and pay their bills. Last but not the least, they no more have to find a parking space to park your car. Online shopping has changed everything. It is even the best option for the laziest people as they only have to make some clicks with the mouse.

The best thing about online shopping is that it helps shoppers to save money. Now this sounds interesting, right? Yes, it is true. They do this using coupons and discount vouchers. If you are looking for a common place to find all the discount vouchers for UK stores, then you must for once visit Dealslands.

Dealslands is a coupon providing site that brings to you free and updated vouchers and offers from different UK stores. The vouchers are easy to use and the shopper can get benefitted from it at the same moment. All the stores are listed properly according to the category so that any shopper can easily find the coupon for the store they want. For example, you can get the latest offers by using Currys discount code if you want to purchase an electronic product.

The products are also listed in the alphabetical order making it easy for the shopper who is searching for a particular store. For example, if you only want to use Nike promo codes directly and don’t want to waste time surfing other offers, you can directly go to them by going through the alphabetical list.

Here you can find vouchers and deals on different kinds of products. You can find deals for clothes, footwear, travel, home and garden products, baby products, food and drinks, beauty products, books and magazines, electronics, gifts, etc. There are many more categories to opt for.

Dealslands makes every effort to make sure that you get the best deal for the product that you want to buy. They list the deals from time to time so that you have the newest deal available at your service. All the expired deals are listed separately so that shoppers don’t get confused with it.

It is even possible to keep yourself updated about the latest deals on different products and get these free vouchers directly into your mail, by signing up for email updates. There is nothing better than getting up in the morning only to find that you have an amazing offer waiting for your favourite dress in your inbox.

So dear shoppers, if you want to save big on your shopping, visit Dealslands for sure. You will definitely find some amazing deals there.

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Animal Friends Scoops Double Award Win at the Consumer Moneyfacts Awards 2015

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UK pet insurance provider, Animal Friends, has been named the winner of two consumer voted awards at the Consumer Moneyfacts Awards 2016.

Animal Friends was crowned Pet Insurance Provider of the Year as well as Best Claims Service for the second year in a row. The Best Claims Service award covers the insurance industry as a whole, naming Animal Friends the best insurance provider across all sectors.

In London on the 21st January, the awards brought together industry professionals from leading financial services and utility providers to celebrate the success from the previous year. The awards are the largest financial service survey in the country, making these results an even greater achievement.

Animal Friends won both awards thanks to a consumer vote, with the insurance provider’s customers choosing the company as the winner. Animal Friends were judged on technical merit, consumer satisfaction and confidence, and all round performance.

Westley Pearson, Director of Claims and Marketing, commented: “2015 was a huge year for Animal Friends, so it’s wonderful to be starting 2016 on such a positive note.  We’re constantly working to make our service and policies the best that they can be, and for our Claims Service to be named the best in the sector is hugely rewarding.”

-ENDS-

About Animal Friends Pet Insurance

Animal Friends is a multi-award winning ethical pet insurance company that supports animal welfare charities all over the world and has donated £2.4 million to animal charities to help improve the lives of animals. Twice-named Pet Insurance Provider of the Year 2015, Animal Friends is one of the UK’s leading pet insurance providers. For more information please visit www.animalfriends.org.uk

 

Forthcoming ‘buy-to-let tax’ prompts property rush

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Analysts await with interest the impact on the UK property market of the forthcoming ‘buy-to-let tax’, due to be introduced as of 1st April, with the government hoping it will ultimately ease what some believe are unsustainable price increases.

However, in the run up to the introduction of the new stamp duty rules, estate agents are in fact reporting increased demand from property investors aiming to buy homes before the surcharge becomes effective.

As of 1st April, anyone in the UK purchasing a property with a value of more than £40,000 to use as a second residence or to let out is set to pay stamp duty three percentage points higher than the standard rate. This measure is being introduced in order to help first time buyers or those simply buying properties to live in themselves, as opposed to serial investors who might be seen to exploit the rental market to the detriment of others.

But unsurprisingly there are signs of a late surge from investors to snap up whatever property they can before it effectively becomes more expensive to them.

The Guardian newspaper in London writes that ‘The Royal Institution of Chartered Surveyors recently reported that the housing market had seen an “unusually buoyant” December, and suggested that this was in part a result of investors trying to beat the tax change. Those involved in the market suggest that this has continued into 2016.’

For investors who are spending £1,000,000 on a property – not an unusually high sum in many parts of London – the new tax would essentially cost them £30,000 extra if they buy after 1st April.

But for those in London who are struggling to get their foot on the ladder with a first property purchase the new surcharge will not apply and will therefore potentially put them ahead of the queue – in front of investors – for certain properties.

The change to property taxation was announced by the Chancellor of the Exchequer George Osborne last autumn and caused mixed reactions amongst observers, some believing it could be counter productive, some believing it does not go far enough to help first time buyers and others believing it could be highly successful.

Estate agents in London in particular have reported a flurry of activity to ‘beat the tax’. Central London estate agent Cory Askew, of Chestertons, told the Guardian, “December and January are not normally busy months for us – it was fairly striking the change in activity. If we have the surge in demand now we can only assume it will quieten down in April, or there will be strong negotiation by buyers.”

Of course some first time buyers and buy-to-let investors will be holding fire for now, believing that increased activity before 1st April could temporarily distort the market and push prices higher up for a few weeks. The story looks set to roll on.

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Growth of Chinese economy slowest in 25 years

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China’s economy grew at the slowest rate since the end of the 1980s in 2015 with a 6.9% growth rate for last year, a drop of 0.4% from the previous 12 months.

The strength of the Chinese economy is seen as an indicator of the health of the global economy and the recent turmoil on China’s stock exchange has caused havoc in international markets. The latest overall figures continue to increase concern for investors across the globe.

Authorities in Beijing are playing down any panic about the figures and had set a growth objective of around 7% for 2015, with China’s Premier Li Keqiang saying decreased growth levels are not an issue provided sufficient new jobs are created.

Some analysts believe the growth figures are lower than being officially reported, with numbers dropping towards 6.8% growth in Q4.

The giant Asian country is in transition after huge growth sustained over a period of more than 10 years. The Chinese want to move towards a consumption and services based economy, rather than rely so heavily on exports and investment.

However, China still depends massively on its vast manufacturing sector and that will not change overnight. Indeed the news of China’s second consecutive year of slowing growth is no great surprise, with regular reports of its manufacturing industry slowing and subsequent reactions on the stock market causing chaotic scenes already this year.

For the Chinese and for those with investments in the Far Eastern behemoth economy there are genuine worries about the future. Annual growth figures are important to the global economy as a whole but the monthly data released by the Chinese is also scrutinized heavily, with some analyst believing the figures are often far from accurate.

Retail data and monthly industrial production figures for December were slightly worse than expected and that of course had a knock on effect on global markets.

Catherine Yeung from Fidelity International was quoted by the BBC providing the following analysis, “The health of the labour market, retail sales and industrial production data are all key indicators for growth. Like any economic data, it’s important to look at the themes and trends that drive them and not just the headline figure. When you look at China with this lens, we’re not seeing a meltdown, just a slowdown.”

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Drop in Oil Prices Results in Slow Global Economic Growth

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Only a modest growth of 0.5% was seen in the global GDP, despite the collapse of oil prices in recent years. In June 2014 crude was still priced at over $115 a barrel, it has since crashed to $30 at the start of 2016.

The modest growth is said to continue throughout 2016, which is good news. However, lowering prices and an oversupply of crude will put pressure on the main countries that export and produce oil around the world, some of which are England, Scotland, Wales and Ireland.

The dropping price of crude largely affects the UK and Ireland, which is the largest producer of oil and gas in Europe. In the past 10 years, the nation was able to cover its account deficit through incoming investment. However, since 2009, its shortage in investment has outpaced the insufficiency of its goods and services.

According to FXCM, “lowering prices and lagging oil production could induce a weakening of the pound.”

However, the UK remains a bullish importer of crude within Europe. Local analysts have expressed optimism that they may potentially gain benefit from the lowering oil prices by 2020, as it will spur greater investment in other sectors, such as manufacturing and transportations.

Due to the falling revenues, fossil fuel exporters and producers are forced to cut back expenditures and delay other projects. Most international oil companies are now forced to scale back their spending, make redundancies, delay some of their projects, as well as sell assets. They will be keeping activities that only offer the best returns on capital.

Analysts say, if the price stabilise in the second half of 2016, then we can expect companies to look at replacing reserves inorganically through acquisitions.

Oil price is forecasted to reach as low as $20 per barrel, but oil company OPEC said they will not slow down supply.

“We could see a short lived phase of all-out panic, which could trigger a freefall situation,” said commodity strategist Ole Hansen of Saxo Bank. “[It is still] difficult to rule out anything.”

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VW still apologising to US consumers over emissions cheating

Matthias Müller, the chief executive of German car manufacturing giant Volkswagen has announced a $900m deal to build a new SUV model in Tennessee on the eve of the Detroit auto show.

Following last year’s scandal around VW’s cheating of emissions tests – discovered initially by American researchers – Müller also apologised to the company’s American customers and admitted that the firm must rebuild confidence and trust in the U.S.

On his first official US visit to the United States since taking over as head of VW – following last September’s diesel car emissions tests scandal – Müller told the gathered American media, “We know that we have let down customers, authorities, regulators and the general public here in America.”

Speaking in Detroit – as the ‘motor city’ prepares to host one of America’s biggest auto shows – the German car manufacturer’s leading figure went on to add, “I would like to apologise once again for what went wrong at Volkswagen. Our most important task in 2016 is to win back trust. It’s not only our cars we have to fix. We have to repair our credibility, too.”

Last year it was US regulators who had discovered the emissions test falsification software in VW-built vehicles, with the German company forced to admit that

11 million diesel cars were affected worldwide, including models of the Audi, Porsche, SEAT, Skoda and VW brands.

The scandal centred around what have become known as ‘defeat devices’ which activate pollution controls when vehicles are being tested for levels of emissions of the highly toxic nitrogen oxide.

The revelations that this might have been done deliberately led to a global scandal damaging VW’s reputation and causing huge financial repercussions for the manufacturer. The mere fact that the company has thus far been able to ride the stormy post scandal waters highlights the scale of their operations and the financial and political power of the group.

However, the US government was not alone amongst other authorities worldwide to take legal action of the matter. In the US it has been stated that the defeat devices were installed on almost 600,000 VW, Audi and Porsche vehicles sold over the last six years.

Proceedings against Volkswagen allege that the company intentionally cheated pollution regulations and also hijacked investigations into the matter by covering up facts and giving out misleading information to the relevant authorities.

Briefing the press in Detroit Müller told journalists “we are not a criminal brand or group” and said that Volkswagen had not intentionally deceived American consumers or lawmakers, even if significant technical errors had been committed.

The extent of the financial fallout for the firm is not yet fully known. Volkswagen faces an expensive recall and fix process across the US, Europe and other territories, whilst government and civil law cases against the company could cost billions in fines, settlements and compensation.

The company’s executives are meeting regulators to negotiate this process whilst their engineers are working rapidly on technical solutions. In the mean time VW will plough on with plans to develop a new SUV vehicle at their factory in Chattanooga, which Müller announced will create 2,000 jobs.

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Irish housewife wins record lottery

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LONDON: Dolores McNamara, 50, of Garryowen, County Limerick in Ireland, won a 77 million pound lottery jackpot, claimed to be Europe’s largest accumulated fortune after nine rollovers.

The National Lottery in Ireland, which runs the Euromillions jackpot, said it has still not got any registration from McNamara, and hence could not confirm she is a winner. A spokesperson of the Lottery said, “Obviously it is all over the papers, but there is a formal procedure. The offices will be open on Tuesday but it would be mid to late next week at the earliest that the person would get the money, because of the magnitude of the amount.”

Euromillions tickets are sold across the U.K. Austria, Belgium, Portugal, France, Luxembourg and Spain. The winner has to match five main numbers from 1 to 50 and two lucky star number from 1 to 9. The previous record winning in Europe was 72 million pounds of the Italina Superenalotto in May this year, while the world record is 197.4 million pounds won by Andrew Whittaker in the U.S. Powerball in 2002.

McNamara, said her friends, was at the TrackBar in Garryowen, when she realised about the win. A barman said she has six kids and is a nice person. “She had given the ticket to a friend to check, telling her she couldn’t win anything – not even an argument. No one could believe it when she was told she had won.” Her husband Adrian, is a bricklayer and is recovering from a heart surgery.

She is into hiding, said her friends, to escape media interest. Her bank manager is said to have escorted her from the bar to the bank to help here put the ticket in safe. She is now 70th in the list of Ireland’s rich people, even ahead of Manchester United star Roy Keane and Hollywood actor Colin Farrell. She bought the 1.40-pound jackpot ticket on Friday, just hours before the draw.

Company man Rowe to replace Bolland as M&S boss

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UK retail giant Marks & Spencer will see current CEO Marc Bolland succeeded by Steve Rowe in April, with Bolland having announced his planned departure well ahead of time.

Like Bolland, Rowe is highly regarded in the retail sector as an experienced merchant and he will take over at the head of the firm in Q2 having previously managed M&S food. At present Rowe directs Marks & Spencer’s clothing and homeware offerings and his father was also a director of the leading British retailer until 2000.

Bolland’s departure is something of a surprise but was announced as M&S published a big drop in recent clothing sales. Bolland will be leaving the company with a £1.5 million pay-off, as he will continue to be paid until January 2017, after continuing to support Rowe in his new role until June of this year.

That arrangement will see Bolland receive nearly £900,000 in basic pay and other benefits and nearly £656,000 in shares. He already owns a stake in M&S estimated to be worth £3m. He could also earn a bonus of nearly £1.95m in cash and shares this year, plus more than £1.5m in additional shares, according to The Guardian newspaper.

M&S have recorded only a single quarterly increase in clothing sales over the past five years, with rivals taking an increasing market share. However, senior M&S figures have been supportive of Bolland and insist he was under no pressure to depart.

Indeed, food sales were strong in Q4 of 2015, as M&S food enjoyed its best ever Christmas. Food and drinks numbers at M&S have been on the rise steadily over most of the last decade.

Bolland remains upbeat about M&S’s status and his own role in the recent development of the business. The Guardian report that Bolland believes he has made a significant contribution to the ‘heavy lifting’ of modernising the company, by improving distribution, enhancing IT infrastructure, breathing life into the food offering, overseeing a strengthening in online services for customers and raising the quality of clothing on sale.

He described M&S as a “financially healthy and talented company” and went on to add, “The business is better in style, quality and margin as never before. You will see over the next quarters the benefits of that and if that is after my time I don’t mind. Can I look back and say it is all finished and great? Never. But I have done the heavy lifting that was needed. I am very pleased with what I have done over the last years and think I have built the foundations.”

Bolland holds a number of positions on the boards of large organisations and plans to devote more time to roles where he can give something back. The Dutchman is vice-president of the charity Unicef.

Featured Image – Source / CC 2.0

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