#How to Calculate Flat Rate VAT

[madisonellie1]

VAT Flat Rate

At Account-Ease, we demystify and help our clients, businesses, to conform to the provisions of the VAT Flat Rate scheme and the UK Gov VAT return. Irrespective of the kind it is whether a quarterly VAT return or even managing with monthly VAT returns, we explain the same to the clients. Tutorial on how to complete a VAT return an example of a fully completed VAT return proves that you have explained this process adequately. Here at Flat Rate VAT Calculator, we harness the most effective software for VAT returns Flat Rate VAT, to enable you determine your flat rate VAT appropriately. It is important to comprehend how flat rate percentages work more so when implementing VAT on digital services. By using Account-Ease, one not only gets to appreciate the benefits of being VAT registered but also does not get fined with the penalty for late filing of VAT return as well as the VAT late payment penalty. We make sure our VAT accountants avoid any problems with regard to delayed VAT payments. We make it our responsibility to make sure your VAT returns are submitted in time to avoid penalties while keeping your business on schedule. That’s right, let the lenient experts of Ease manage your VAT properly so that you can handle what is most important—your business.

[darkmaga-returns]

By now, we are all aware of the plans of the mad scientists and billionaires to cover (CO2 absorbing) pasture and crop land with onshore wind turbines and solar plants. We are also aware of the intent to remove livestock – cattle, sheep, pigs and chickens – so that we ear bugs and ay land not polluted with solar panels and wind turbines is returned to nature for “rewilding”. We have seen how, in the UK, the Royal Society for the Protection of Birds is a huge sponsor of wind turbines that kill birds.

Here is an article that highlights the continuing war on farmers in the UK – via the inheritance tax that taxes unrealised capital gains – forcing the farms to be sold if there is insufficient cash to pay the inheritance tax calculated by bureaucrats.

Pay particular attention to the verbiage here:

“Inheritors will have to pay 20% of the value of the agricultural and business property above £1million. Having tax exemptions currently costs "about £1bn a year for taxpayers", according to Chief Secretary to the Treasury, Darren Jones.”

“Taxation exemption costs…”!!! Hey Mr Jones, it’s not your effing money! What you are doing is not “closing an exemption”, it is imposing a tax that did not previously exist! The argument here s that “society” is being cheated by people who have accumulated wealth in the value of farms – regardless of the ups and downs of the land owned by the farm or whether the value is in livestock or solar panels/wind turbines!

All taxation is theft. No money paid to the State is the State’s by right – it is a privilege granted by voters.

In my view, VAT is a tax imposed on the country in order for it to join the EU. The UK is no longer in the EU, ergo, VAT should be abolished. It acts as a trade tariff for imports and has increased the cost of living by its percentage rate.

Mind you, it is also my view that government spending, especially on health, needs to be reduced by at least half and that taxation should be simplified to abolish ALL customs and excise duties, tobacco or alcohol taxes, or road taxes, TV license fees and there should be a flat corporate and income tax rate of 15% with NO ALLOWANCES. Vote for me!

[cowbaehawyee]

Hello friends

This is my last ditch effort to make myself study for this godforsaken exam that I have coming up. Please feel free to ignore if none of this interests you.

So without further ado….

A LONG-WINDED, MOSTLY CORRECT, BUT DEFINITELY NOT DEFINITIVE GUIDE TO US TAX LAW

As told by an accounting student on her last limb, fueled by ginger lemon olipop and a bag of cherry twizzler bites

To begin with:

What’s a tax?: a tax is a payment that you make to the government to help the government pay for government things

What’s a taxpayer?: a person that pays tax, aka: everyone alive, and even some that are dead

What does “tax base” mean?: a tax base is an area, activity, event, etc. that a tax is levied on. The common examples that most would be familiar with are: the income tax, property taxes (personal and real property), Medicare/unemployment, and sales tax. However, there are tons of funky tax bases out there, maybe even some you’ve never heard of, like use taxes, excise taxes, estate and transfer taxes, or the elusive VAT tax.

What’s a tax rate?: the percentage that is used to calculate the amount of tax that you owe. This can either be a flat rate (easy to calculate, but uncommon), or a progressive/regressive rate (more complicated, and also more common).

Now that we have those basic definitions out of the way, let’s get into some other big questions that usually come up:

Why do I have to pay tax? This sucks!!!: Yeah, it does, but unfortunately if you want decent quality social services, the government has to get the money from somewhere. If they don’t, that means that the national debt keeps going up. Which is not ideal.

How does the government decide what gets taxed, and how much?: There are four ways to evaluate whether or not a tax is “good”. These are: sufficiency, fairness, efficiency, and convenience. Shortly defined, these are…

Sufficiency: the government makes enough money from the tax for it to be worthwhile

Fairness: people who have more ability to pay (ei: make more money) owe more tax, while people who are less able to pay owe less. Also, people who have the same ability to pay should owe the same amount of tax

Efficiency: implementing the tax has the desired effect economically, as far as influencing/not influencing people to make certain choices

Convenience: the tax is easy to implement, and easy to pay

If all of these requirements are satisfied, then a tax is good enough to be implemented

How does the government decide how much tax I owe?: Glad you asked!

1. When it comes time for tax season (from the beginning of the new year to April 15th), the government looks at all the income you had from last year and adds it all together. So bust out your form 1040, it’s time to get crunching. First, you get your adjusted gross income, which is basically just your total income, adjusted for a few small details that don’t apply to most people. Usually, your AGI will be equal to your total income, if you’re not a small business owner.

2. Next, it’s time for deductions. You can either “itemize”, which means to deduct the total amount for specific expenses you had throughout the year, or you can just do what most people do and take the standard deduction. Itemizing isn’t helpful for most people, because most people just don’t pay enough of the things that are considered itemized expenses to justify taking that over the standard deduction. Medical and dental expenses, state and local taxes, and charitable contributions are just some examples of things people can elect to itemize.

3. The next step after deductions is optional for people that don’t own part or all of a business. This is the qualified business income (QBI) deduction, which, simply put, allows the taxpayer to deduct 20% of their income received from sole proprietorships, partnerships, LLCs, and s-corporations. If you don’t have interest in any of those business types, this step isn’t for you.

4. Now we have your final taxable income! Yippee!!!! This is what’s used to calculate your tax liability, or what you owe. To do this, you first need to know what type of income you’ve made. Specifically, is it ordinary, or is it a capital gain?

What’s the difference between the two? Well, not much. It’s not intuitive, and the separation between the two doesn’t always make sense. However, the good thing is that the majority of what most taxpayers make is ordinary income. Wages, salaries, interest income, and most dividends are all ordinary.

Now that you have your final taxable income, you compare this to the income tax rate schedule, aka your “tax bracket”. These amounts change yearly, and are divided into income ranges, each being assigned a given tax rate percentage. Simply divide your income into the sections given on the rate schedule, multiply across, add up the products, and boom! There’s the amount of tax that you owe!

5. We now know how much tax you owe, we get to do the fun part, which is subtracting stuff to make that amount smaller. First up, credits! Credits aren’t as commonly used as deductions, as not everyone qualifies for one, but there are some pretty common ones that you may qualify for:

If you have a child/dependent, you could get a credit!

If you pay tuition for your school, you could get a credit!

If you make under a certain amount of income, you could get a credit!

Most tax services have a function that will help you figure out which ones you qualify for.

6. After you take out credits from the amount you qualify for, you then subtract any taxes that you have already paid. These are the withholdings that come out of your paychecks, and these further reduce your tax liability. And finally, after all of these steps…

7. We have arrived at the amount you either owe, or are owed in the form of a tax refund.

Why is tax law so damn complicated????: because people keep finding ways to get around paying taxes, and the IRS keeps patching loopholes. Rinse and repeat until the end of time

Why can’t the government just… tell me how much I owe and I’ll pay it?: because that would be too easy. And also because tax prep services like H&R Block and TurboTax lobbied to make sure that didn’t happen. Let’s just be glad that lobbying expenses aren’t deductible on a business return.

Now, let’s do a deeper dive into some other topics that may be of interest (read: that I needed to study). Most of you are most familiar with taxes levied on individual’s wage income, but there is a whole world of other entities, places, activities, and incomes out there.

Let’s get into that!

First off… let’s talk about some of the things that people consider when planning out their taxable transactions. This might not be something that you’ve ever given much thought to, but for business, business owners, and other high income individuals, this is something that really needs to be considered in order to be successful. But you know what’s cool? Everyone can benefit from good tax planning practices!

Tax planning!

Jurisdiction: WHERE you live, do business, etc. matters. Every state and locality has different tax rates, and sometimes even different rules for what is and isn’t taxable. For example, the Florida income tax, or lack thereof. I mean, sure, they get taxed higher in other areas, but wouldn’t it be nice to get your entire paycheck?

Entity: What’s maybe the most important variable in all of tax law is the entity. This just means: what TYPE of taxpayer are we talking about? Is it an individual? Sole proprietor? Estate? LLC? Trust? Partnership? Corporation? S-corporation? All of these have different rules and requirements that have an effect on tax treatment.

Time: WHEN is the taxable event? Is it possible to accelerate income into the current year, or defer an expense to the next year? Maybe it would even be better to accelerate an expense into a year where you know it will be taxed at a lower rate? Whatever it is, the timing of a transaction is always an important factor.

Character: What type of income is it? We went over ordinary vs. capital gain earlier, which are the main two types, but there are tons of different classifications for income. This is probably the most complex variable, as what income belongs in what category isn’t always clear, and portions of income may be reclassified into different categories for tax purposes.

Next, let’s take a look at the business side of things, starting with:

How do business taxes even work?

And the short answers is… it depends on the business. That “entity” variable really comes into play here, mostly because only one type of business is its own taxable entity: the corporation. They are legally their own “person”, so they pay taxes at their own separate rate. This makes doing business as a corporation the most “expensive” option out of all business types, because the income from them is taxed twice; once at the corporate level, and then again on the individual level when the profit is paid out as dividends. Companies typically choose to incorporate for the potential for growth, NOT for the tax benefits.

What about other businesses? Don’t worry, we didn’t forget about them! Other businesses like sole proprietorships, partnerships, LLCs, and S-corps are all called “flow-through” entities. What this means is that the business itself isn’t its own taxable entity. Instead, the profit that the business makes is distributed to the owners, and that share of profit is what is taxed, at the individual level.

How is taxable income calculated for a business?

There’s fewer steps to do this than in this individual tax, altogether. However, each individual step is far more bastardized and complicated, so it kind of evens out. You still keep the format of gross income - allowable deductions = taxable income, but the deductions, credits, and other adjustments look very different. Some main features of business taxes are:

The net operating loss (NOL) deduction:

There is a special word in accounting for when a company has more expenses than revenues; Bad. However, it’s not all terrible if a company sustains a loss in a certain year. If a firm has a net operating loss, this can “carry forward” as they say, and become a deductible item for next year’s taxes. This deduction is limited to 80% of the firm’s taxable income in the year they want to take the deduction, but they can carry forward the loss amount until it has all been used up.

Like everything in tax law, however, this isn’t without limitation, leading us to…

The excess business loss limitation

A taxpayer can’t just carry forward any amount that they lose, or at least some of them can’t. This limitation applies to non-corporate taxpayers, and non-corporate shareholders in flow through entities. Basically, if a taxpayer has a business loss more than a threshold amount ($610,000 for married filing jointly, $305,000 for single), the excess is what is allowed for their deduction in future years, subject to the same 80% rule as the NOL deduction. Also, if a taxpayer has multiple businesses, they are allowed to net income and losses against each other for ease in computing this deduction.

The qualified business income (QBI) deduction

As stated above, this deduction can be simply calculated as 20% of a business’s qualified business income. But this is tax law. Nothing is ever that simple.

To begin with, QBI is reduced by the deductible portions of self employment tax, health insurance premiums, and retirement plan contributions.

The deduction is 20% of remaining QBI, EXCEPT

It cannot be more than 50% of the W2 wages paid by the company, OR more than 25% of W2 wages plus 2.5% of the company’s unadjusted basis of qualified property

ALSO: the deduction can’t exceed 20% of taxable income BEFORE this deduction is computed

HOWEVER: if the taxpayers QBI exceeds a threshold amount ($383,900 for married filing jointly, $191,950 for everyone else), the amount of the deduction is phased down by 1% for each 1,000 dollars exceeding the threshold (2% for everyone not married filing jointly)

And finally: if the taxpayer’s QBI doesn’t exceed the threshold amount (same as above), disregard all of the above. They just take 20% :)

This deduction is so fucking complicated that the textbook gives you a worksheet to help you do it. This literally isn’t even half of the information on this deduction. I did an entire busy season internship and I am still no closer to understanding this. What the fugk

Cost recovery deductions

To understand what this means, first we need to understand what it is that we’re recovering. So let’s put it like this: you know when you buy a car for one price, but then when you sell it years later it’s worth way less? That difference in cost is called depreciation. This is something that’s extremely important to keep track of for tax reasons, because depreciation expense is deductible, and this means that companies can deduct either a portion of or all of the cost for an asset that would otherwise just be capitalized. This is good!

There are three cost recovery deductions out there, and they are applied on a business’s return in this order:

Section 179 deduction: This applies to depreciable personal property and computer software. For this deduction, the taxpayer is allowed to deduct up to $1,220,000 in asset purchases for the year. There are two limitations: the deduction amount can’t exceed taxable income, and the total asset purchases for the year can’t exceed $3,050,000. If they exceed this threshold amount, the excess over the threshold reduces the deduction amount. This means that in 2024, a company with over $4,270,000 in asset purchases cannot take section 179 at all. The good thing is, though, unused depreciation can be carried forward to future years as a deduction.

Bonus depreciation: Applies to most tangible personal property with a useful life of under 20 years, and also computer software and some other things that aren’t important. This deduction uses a percentage based on the year of purchase to decide the deduction amount, which for 2024 is 60% of asset cost. However, it is in the process of being phased out, so this bullet will be irrelevant by 2027.

MACRS: Applies to all depreciable property. MACRS is a system that assigns recovery time periods to each type of asset, which can range anywhere from 3-50 years (for example, local city sewer systems are an example of a 50-years asset). The method of depreciation used depends on the recovery period. If neither section 179 or bonus depreciation can be taken, MACRS is always allowed to be taken, which is still a beneficial outcome when compared to just depreciating assets the normal way.

So anyway

That was everything that I cared to write about today. There’s still like… 11 chapters in the book I haven’t even covered yet here. Might do some more over the weekend, not sure yet.

And uh, please feel free to ask questions if you actually read all that. Explaining helps me learn

Byeeeeeeee

[primoaccount12]

Expert VAT accountants ready to manage your tax needs

Value Added Tax (VAT) is a vital part of doing business in the UK, but it can also be complex and time-consuming. With changing regulations and strict compliance requirements, managing VAT correctly is crucial to avoid penalties and ensure smooth business operations. That’s why many companies turn to professional VAT accountants for expert guidance and support.

VAT accountants specialize in handling every aspect of VAT for businesses, from registration and calculations to returns and compliance checks. Whether you’re a startup approaching the VAT threshold or a growing limited company expanding internationally, working with skilled VAT accountants can save you time, money, and stress.

What Do VAT Accountants Do?

Professional VAT accountants provide comprehensive VAT services tailored to your business needs. These include:

VAT Registration: Helping you determine when and how to register for VAT with HMRC, and choosing the right scheme (Standard, Flat Rate, Annual Accounting, etc.).

VAT Return Preparation & Filing: Ensuring your VAT returns are accurate and submitted on time, avoiding costly mistakes or delays.

VAT Planning & Advice: Offering strategic guidance on how to manage VAT efficiently across your operations, particularly for international trade or multiple business sectors.

HMRC Compliance & Audit Support: Helping you prepare for VAT inspections and resolving any issues with HMRC.

Reclaiming Input VAT: Identifying areas where your business can reclaim VAT to reduce costs and improve cash flow.

Why Choose Primo Accountants as Your VAT Accountants?

At Primo Accountants, we pride ourselves on being experienced VAT accountants who understand the ins and outs of UK VAT laws and the specific needs of small to medium-sized businesses. We provide accurate, timely, and proactive support so you never have to worry about missing a deadline or making an error.

With Primo Accountants, you’ll benefit from:

A dedicated team of VAT experts with deep knowledge of UK tax regulations

Cloud-based accounting solutions for real-time access and streamlined VAT tracking

Transparent, fixed pricing with no hidden fees

Tailored support for various industries including retail, consulting, manufacturing, and e-commerce

Ongoing advice to help you make informed financial decisions

Conclusion

VAT compliance is a critical part of running a successful business, and working with professional  VAT accountants  ensures you stay on top of your obligations while maximizing efficiency. At Primo Accountants, we’re here to take the stress out of VAT so you can focus on growing your business. Whether you need help registering for VAT, filing returns, or managing international VAT obligations, our expert team is ready to assist.

[alzoradubaidotcom]

Cost-Effective Accounting Services in Dubai: Maximizing Your Budget

Introduction

Understanding the Importance of Cost-Effective Accounting in Dubai

As a business owner in Dubai, you operate in one of the world's most dynamic economic landscapes. With evolving regulations, competitive markets, and international stakeholders, maintaining financial accuracy is not just important. It's essential. Accounting services in Dubai have become a key pillar for businesses seeking long-term success.

What This Article Will Do for You

This guide will help you identify cost-effective accounting services in Dubai. You'll learn to maximize your financial resources, avoid compliance penalties, and ensure sustainable growth without overpaying for financial services.

Why Accounting Services in Dubai Matter

Dubai's Regulatory and Tax Environment

Dubai is a global business hub that enforces strict financial reporting and VAT compliance. The UAE introduced VAT in 2018, and compliance errors can result in heavy fines. Your accounting team must adhere to these regulations to protect your business.

The Cost of Inaccurate Financial Management

Inaccurate bookkeeping can lead to tax penalties, missed financial opportunities, and poor decision-making. Efficient accounting services help you track cash flow, prepare accurate financial statements, and meet all reporting deadlines.

What "Cost-Effective" Really Means in Accounting

More Than Just "Cheap"

Cost-effective does not mean low quality. It means receiving high-quality, professional services at a rate that aligns with your business needs and size. The goal is to receive maximum value for every dirham you spend.

Balancing Price and Value

Your ideal accounting partner provides services priced according to the value delivered. They streamline your processes, reduce financial risk, and offer strategic insights, not just numbers.

Core Accounting Services You Actually Need

Bookkeeping Services

Track every transaction accurately. Reliable bookkeeping ensures your records are audit-ready, which is essential in Dubai's regulated business environment.

VAT Registration and Filing

If your business earns more than AED 375,000 annually, VAT registration is mandatory. Your accountant should manage filings, ensure timely payments, and maintain compliance.

Financial Statement Preparation

You need income statements, balance sheets, and cash flow reports for bank loans, investor relations, and annual audits. These documents must be clear, accurate, and timely.

Payroll Processing

Dubai labor laws are strict. Mistakes in payroll processing can result in employee dissatisfaction or fines. A competent accounting service manages salaries, WPS filings, and gratuity calculations efficiently.

Internal Audits and Compliance

Regular audits help you spot irregularities, optimize processes, and prepare for external inspections. Choose an accountant with audit capabilities to stay on the safe side.

How to Identify a Cost-Effective Accounting Service in Dubai

Step 1: Define Your Needs First

Start by listing your financial pain points. Are you struggling with VAT compliance? Do you need help with cash flow management? Identifying your exact needs prevents overpaying for unnecessary services.

Step 2: Compare Fee Structures

Some firms charge flat monthly fees; others bill hourly. Choose what aligns with your cash flow. Always ask for an itemized quote.

Step 3: Evaluate Experience and Industry Expertise

Hire professionals who have experience in your sector. Whether you're in retail, real estate, or tech, Dubai's rules differ slightly by industry. Sector-specific knowledge means better service for you.

Step 4: Check for Technology Integration

Ask whether the firm uses cloud-based software like Zoho Books, QuickBooks, or Xero. Tech-savvy accountants help automate your processes and reduce manual errors.

Step 5: Request Client References

Speak to current or past clients. Were they satisfied with responsiveness, accuracy, and value? Real-world reviews are better than marketing promises.

How Much Should You Pay for Accounting Services in Dubai?

Freelancers vs. Accounting Firms

Freelancers may charge between AED 500–2,000/month, which is suitable for small businesses. Professional firms charge from AED 2,000–10,000/month depending on services and company size.

Price Benchmarks

Service TypeAverage Monthly Cost (AED)Basic Bookkeeping800 – 2,000VAT Filing1,000 – 2,500Financial Statement Prep2,000 – 4,000Full-Service Accounting Firm3,000 – 10,000

Get a Written Contract

Always sign a service-level agreement (SLA). It should include pricing, deliverables, timelines, and confidentiality terms. This protects both parties and avoids surprise fees.

Common Red Flags to Avoid

Vague Service Descriptions

Suppose the firm can't explain what they'll do. Transparency is key to trust.

No Local Regulatory Knowledge

Dubai's financial regulations are unique. Firms unfamiliar with UAE laws can cost you more in fines than they save you in fees.

Outdated Technology

Avoid firms using only spreadsheets or paper records. This increases errors and slows reporting.

Digital Accounting: A Smarter, Cheaper Option

Benefits of Cloud-Based Accounting

Cloud solutions offer real-time access, better security, and instant backups. They also reduce manual labor and increase accuracy.

Cost Comparison: Manual vs. Digital

Manual accounting requires more hours and higher labor costs. Digital systems streamline work and often cost less in the long run.

Hidden Savings: How Good Accounting Reduces Costs

Saves You from Fines

Accurate VAT filing, payroll compliance, and audit readiness prevent costly penalties from the FTA and Ministry of Labor.

Improves Budget Management

Clear financial reporting helps you plan better and avoid overspending. You get a stronger grip on operating costs.

Helps Secure Loans and Investments

Accurate statements build credibility with banks and investors. They improve your chances of securing favorable financial terms.

Choosing Between In-House and Outsourced Accounting

In-House: Pros and Cons

You get direct control but also pay for full-time salaries, benefits, and office space.

Outsourced: More Flexible and Scalable

You pay only for what you need. This is ideal for SMEs or startups looking for scalability without overhead.

Accounting Needs Based on Business Size

Startups and Freelancers

Stick to essential services: bookkeeping, VAT, and quarterly reporting. A freelancer or small firm is often enough.

SMEs

Add payroll, monthly reports, and financial forecasting. Choose a mid-size firm with sector knowledge.

Large Enterprises

Full audits, risk assessments, advanced analytics, and CFO-level strategy. Partner with a well-established firm with a proven track record.

Top Tools for Affordable Accounting in Dubai

Zoho Books – Localized for UAE VAT, affordable, user-friendly.

QuickBooks Online – Great for SMEs, has detailed reports and is scalable.

Xero – Cloud-based, ideal for remote teams.

Tally ERP – Traditional, but still popular in certain sectors.

FreshBooks – Excellent for freelancers and consultants.

Why Al Zora Accounting and Advisory Is a Smart Choice

A Trusted Provider of Accounting Services in Dubai

Al Zora Accounting and Advisory offers reliable, cost-effective accounting services in Dubai tailored to businesses of all sizes. Whether you're a startup managing limited resources or an established enterprise aiming to streamline financial operations, Al Zora delivers high-value services that align with your budget and compliance needs.

What Makes Al Zora Stand Out

Regulatory Expertise: Al Zora stays up-to-date with UAE's evolving tax laws and compliance standards.

Customized Solutions: Services are tailored based on your industry, size, and specific financial challenges.

Tech-Enabled Efficiency: They leverage leading accounting software like Zoho Books, QuickBooks, and Tally to ensure fast, accurate reporting.

Transparent Pricing: No hidden fees, just straightforward, honest pricing with maximum value.

Services Offered by Al Zora

Accounting and Bookkeeping

VAT registration and filing

Payroll management

Financial statement preparation

Internal audits and compliance reviews

Whether launching a new business or optimizing an existing one, Al Zora helps you maintain full control of your finances while keeping overhead costs in check.

Final Tips to Maximize Your Accounting Budget

Bundle Services

Instead of paying separately for each task, ask for a custom package. You'll get a better deal.

Stay Organized

Keep receipts, invoices, and documents ready. Organized records reduce the time your accountant needs, reducing your costs.

Review Reports Regularly

Don't wait for year-end reviews. Regular check-ins help you fix issues before they become expensive.

Conclusion

Cost-effective accounting services in Dubai aren't just about finding the lowest price. They're about maximizing the value of every dirham spent. Whether you're a startup needing basic compliance or an enterprise seeking full-scale auditing, there's a solution tailored to your needs and budget.

Choosing the right accounting partner helps you save money, stay compliant, and focus on growing your business. Start evaluating your current setup today your future self will thank you.

[acerealty1]

Understanding GST and Its Impact on Residential Property

Introduction

The Goods and Services Tax (GST) has been a game-changer in the Indian taxation system. Introduced in 2017, GST has streamlined various indirect taxes into a unified tax structure. One sector significantly influenced by GST is the real estate industry, particularly the residential apartment in Thane segment. Understanding how GST affects flats in Thane is crucial for both homebuyers and developers.

What is GST on Residential Property?

GST is applicable to under-construction properties but does not apply to the sale of ready-to-move-in properties. Before GST, multiple taxes such as Value Added Tax (VAT), Service Tax, and other charges were levied on property transactions, making tax calculations complex. With GST, a single tax structure simplifies the process, ensuring transparency.

GST Rates on Residential Property

Affordable Housing: GST is levied at 1% without Input Tax Credit (ITC).

Non-Affordable Housing: A GST rate of 5% is applicable without ITC.

Ready-to-Move Properties: No GST is applicable as they do not fall under the definition of a service.

Impact of GST on Homebuyers

Increased Transparency: The single-tax regime eliminates hidden taxes, ensuring buyers know the exact tax they are paying.

Lower Tax Burden: The removal of multiple indirect taxes has led to a reduced overall tax liability for homebuyers.

Simplified Purchase Process: The GST framework has reduced the complications in tax calculations, making transactions smoother.

Impact of GST on Builders and Developers

Streamlined Taxation: Builders now deal with a single tax system instead of multiple levies, reducing compliance burdens.

No Input Tax Credit (ITC): The revised GST rates do not allow ITC, which affects cost savings for developers.

Pricing Adjustments: Developers might adjust property prices based on tax implications, which could affect demand and supply.

GST on Other Charges Related to Residential Property

Maintenance Charges: If the maintenance charges exceed ₹7,500 per month per unit, GST at 18% applies.

Parking, Clubhouse, and Other Charges: GST is applicable on additional services provided by the builder.

Conclusion

GST has brought significant changes to the property in Thane sector by introducing a streamlined tax structure. While it has benefited homebuyers by eliminating multiple taxes, it has also posed challenges for developers due to the removal of ITC. Understanding these nuances can help buyers make informed decisions and developers strategize better pricing models. Whether you are planning to buy a 2 BHK property in Thane, invest in affordable flats in Thane, or explore a luxury 2 BHK home in Thane, being aware of GST implications is essential for a smooth transaction.

[kotsicpafirm]

Understanding Accounting and Tax Services in Japan: A Guide for Foreigners and Startups

Japan is a vibrant place for business, which also attracts entrepreneurs and foreign investors. However, Accounting and Tax Services in Japan are a maze and challenging for startups and expatriates.

How much is income tax in Japan salary tax for foreigners and what are the Accounting Services for Startups Japan?

Accounting and Tax Services in Japan

Japan’s tax and accounting needs are complex, whether you are managing a multinational or a local company. Corporate income tax, consumption tax (similar to value-added tax or VAT), and local taxes are all governed by the Japanese Corporate Tax system.

This includes performing bookkeeping, generating financial statements, and filing various documents with the National Tax Agency (NTA) to ensure compliance with Japanese Laws and Regulations, including Corporate Tax Law.

Income Tax in Japan for Foreigners

For foreigners working or investing in Japan, Income Tax in Japan for Foreigners laws provide for Income Tax on the basis of residency:

• Non-Residents (Under 1yr in Japan): Only their Japan-sourced income is taxed at a flat 20.42% rate.

• Residents (More than 1 year but not permanent): There is progressive taxation on global income (5%-45%) for residents.

• Permanent Residents: Tax on worldwide income with the same progressive rates.

Japan has treaties with numerous countries to avoid double taxation, thus providing foreign tax credits and deductions. The tax calculation process is much more precise and guarantees that benefits are maximized with the help of tax consultants.

Accounting Services for Startups Japan

For business registration in Japan, effective money management is essential. Startup Japan's professional accounting services cover the following areas:

• Company Registration & Compliance: What helps you establish your business structure smoothly and comply with Japanese financial laws

• Managing the Bookkeeping & Payroll: Keeping precise financial records and managing employee remuneration.

• Consumption Tax (VAT) Registration & Filing: Supporting businesses to comply with Japan’s 10% consumption tax regulations.

• Tax Advisory & Optimization: Advising startups on tax-deductible expenses and tax-saving tactics

To ensure your company stays afloat and to reduce the risks relating to accounting practices, it may be wise to partner with a local tax consultant who specializes in Japanese accounting laws offering you protection and peace of mind.

Conclusion

Learning Accounting and Tax Services in Japan as experts in their field, they have experience and insight into the Income Tax in Japan for Foreigners and can also provide Accounting Services for Startups.

Are you seeking accounting support in Japan? Reach out to an expert tax adviser right now to improve the efficiency of your financial practices!

[sankavin]

How to Automate Subscription Billing for Your SaaS and Scale Effortlessly

Running a SaaS business is all about recurring revenue, but handling subscription billing manually? That’s a mess waiting to happen. Lost invoices, failed payments, and constant customer complaints can turn your billing system into a full-time headache.

The solution? Automation.

By setting up an automated subscription billing system, you can get paid on time, keep customers happy, and focus on scaling your business—without spending hours fixing payment issues.

Here’s everything you need to know about automating subscription billing for your SaaS.

Special Mention: Automate Subscription Billing for SaaS

Why Manual Subscription Billing is a Bad Idea

If you’re still managing invoices in spreadsheets, chasing down failed payments, or manually updating customer plans, you’re wasting too much time.

Here’s what happens when you don’t automate your billing:

❌ Revenue Leakage: Customers drop off because their payment failed, and you didn’t catch it in time.

❌ More Support Tickets: Customers complain about incorrect charges, lost invoices, or expired credit cards.

❌ Increased Churn: Failed payments account for 10-15% of churn in SaaS businesses.

❌ Tax Compliance Issues: Selling globally? You’ll need to handle VAT, GST, and local tax regulations—manually tracking this is nearly impossible.

Why Automate Subscription Billing?

✅ No More Missed Payments: Automatically charge customers on schedule, retry failed payments, and send reminders before credit cards expire.

✅ Better Cash Flow: Get predictable revenue and accurate forecasts without constant surprises.

✅ Happier Customers: Let users manage their own subscriptions—upgrading, downgrading, or canceling without emailing support.

✅ Less Manual Work: Free up your team by automating invoices, tax calculations, and revenue tracking.

If you want to scale your SaaS, automation isn’t optional—it’s necessary.

Best Subscription Billing Software for SaaS

So, what’s the best way to automate your billing? It depends on your needs. Here are the top tools that can handle everything from invoicing to payment processing and churn reduction.

1. Chargebee – Full Subscription Management

🔹 Automates invoices, pricing plans, and global tax compliance. 🔹 Supports multiple pricing models (flat, tiered, usage-based). 🔹 Ideal for SaaS businesses scaling fast.

2. Recurly – Advanced Churn Reduction

🔹 Smart dunning management to recover failed payments. 🔹 Customizable subscription plans with analytics. 🔹 Great for reducing involuntary churn.

3. Stripe – Payment Processing & Billing

🔹 Supports global payments and multiple currencies. 🔹 Secure transactions with fraud prevention tools. 🔹 Best for integrating with existing SaaS platforms.

4. ProfitWell – Revenue Tracking & Analytics

🔹 Monitors Monthly Recurring Revenue (MRR) and churn. 🔹 Predicts customer Lifetime Value (LTV) and helps optimize pricing. 🔹 Helps SaaS companies improve retention and forecasting.

How to Automate Subscription Billing (Step-by-Step Guide)

Want to set up hands-free billing? Here’s how to do it:

Step 1: Automate Invoicing & Subscription Plans

Tool: Chargebee or Recurly

Set up recurring invoices that adjust for upgrades, downgrades, and cancellations.

Enable free trials, prorated charges, and discounts automatically.

Ensure tax compliance for global customers.

Step 2: Streamline Payment Processing

Tool: Stripe

Accept payments via credit cards, ACH, and PayPal.

Enable automated retries for failed payments to prevent lost revenue.

Offer localized pricing for different markets.

Step 3: Track Revenue & Reduce Churn

Tool: ProfitWell

Monitor churn rates, subscription growth, and customer lifetime value (LTV).

Identify high-risk customers and send proactive retention emails.

Adjust pricing strategies using real-time revenue insights.

Step 4: Set Up Dunning Management

Tool: Recurly

Send automated reminders for expired credit cards.

Retry failed payments multiple times before canceling subscriptions.

Recover revenue from at-risk customers before they churn.

With the right tools, your SaaS business can grow effortlessly without constantly fixing billing issues.

SaaS Billing Automation: What Are Your Options?

Not sure if Chargebee, Stripe, or ProfitWell are the right fit? Here are some alternatives:

🔹 Zuora: Best for enterprise-level SaaS businesses that need advanced customization. 🔹 Chargify: Perfect for B2B SaaS companies with usage-based pricing models. 🔹 PayPal & Square: Great for startups with simpler payment needs. 🔹 Baremetrics: Similar to ProfitWell but with a better user interface for analytics.

FAQs: Subscription Billing Automation

What is the best subscription billing software for SaaS?

Chargebee, Recurly, Stripe, and ProfitWell are among the top subscription billing platforms that automate invoicing, payments, and revenue tracking.

How does automated subscription billing work?

It connects invoice generation, payment processing, dunning management, and analytics into one seamless system.

Which is better: Chargebee or Stripe?

Chargebee = Best for subscription management and complex pricing models.

Stripe = Best for secure global payment processing and fraud protection.

How can SaaS businesses reduce churn with automated billing?

By using dunning management, automated retries, and customer engagement, SaaS companies can recover failed payments and prevent churn.

Final Thoughts: Get Your SaaS Billing Under Control

Still handling billing manually? It’s time to automate and take control of your revenue.

✔ No more lost payments. ✔ No more manual invoices. ✔ No more customer churn due to failed payments.

📌 Next Steps: 1️⃣ Pick the best subscription billing software for your SaaS. 2️⃣ Integrate automated invoicing, payments, and analytics. 3️⃣ Set up dunning management to reduce churn.

See how Konnectify helps SaaS businesses automate their billing effortlessly.

Have questions? Drop them in the comments. Let’s talk about how you can scale your SaaS with subscription automation.

[insurance-patner]

Different Types of Taxes: A Comprehensive Guide

Taxes are an essential part of every country's economy, providing the government with the revenue needed to fund public services and infrastructure. As individuals, businesses, or corporations, we all contribute to this system in various forms. This blog will explore the different types of taxes levied on individuals and entities, providing a deeper understanding of how taxes function and why they are necessary.

1. Income Tax

Income tax is one of the most common types of taxes. It is levied on the earnings of individuals and corporations. Governments use income tax as a primary source of revenue to fund programs and services such as education, defense, public health, and infrastructure.

Personal Income Tax: This is the tax imposed on individuals or households. The tax is calculated based on a taxpayer's gross income, with deductions for things like retirement savings or mortgage interest. The rate may vary depending on the country or region, and in many cases, the more you earn, the higher your tax rate will be. Some countries have a progressive tax system, where rates increase as income rises, while others may have a flat tax rate.

Corporate Income Tax: This is a tax imposed on a company’s profits. Like personal income tax, corporate income tax rates differ depending on the country and the size of the business. However, corporations can also reduce their tax liability by claiming deductions for business expenses like salaries, utilities, and research investments.

2. Sales Tax

Sales tax is an indirect tax that consumers pay when purchasing goods or services. Businesses collect sales tax from customers at the point of sale and then pass it on to the government. Sales taxes are usually a percentage of the purchase price and can vary by state or region.

General Sales Tax: This is the most common type of sales tax, levied on the sale of goods and services at the retail level. Different countries have different rates, and some may exclude necessities like food and medicines.

Value-Added Tax (VAT): VAT is a consumption tax levied on the value added to a product at each stage of its production or distribution. While similar to a sales tax, VAT is collected at each point in the supply chain, not just at the final sale. Many European and Latin American countries rely on VAT as a significant source of government revenue.

3. Property Tax

Property tax is a tax levied on real estate, such as land and buildings. It is typically assessed annually and is based on the property's value. Property taxes provide funding for local services like schools, police, fire departments, and infrastructure maintenance.

Real Estate Tax: This is the most common form of property tax and is based on the market value of land and buildings. Homeowners pay real estate taxes based on their property’s assessed value, which is determined by local authorities. Real estate tax rates can vary significantly depending on the jurisdiction.

Personal Property Tax: In some regions, personal property tax is levied on movable assets, such as vehicles, boats, or equipment. This tax is typically calculated based on the value of the asset and is often assessed annually.

4. Excise Tax

Excise tax is a type of tax imposed on specific goods, services, or activities. Governments levy excise taxes to discourage the consumption of certain products or to raise revenue for specific programs. Unlike sales tax, which is a percentage of the purchase price, excise taxes are often levied as a fixed amount per unit of the product.

Fuel Taxes: One of the most common forms of excise tax is the fuel tax. Governments impose taxes on gasoline, diesel, and other fuels to fund transportation projects such as roads, bridges, and public transit systems.

Tobacco and Alcohol Taxes: Known as "sin taxes," these excise taxes are imposed on products that are considered harmful, such as cigarettes and alcoholic beverages. The primary goal of these taxes is to discourage unhealthy behavior while also raising revenue for public health programs.

5. Estate and Inheritance Taxes

Estate and inheritance taxes are levied on the transfer of wealth after a person's death. These taxes are designed to redistribute wealth and ensure that large estates contribute to public funds.

Estate Tax: This is a tax on the total value of a deceased person's estate before it is distributed to heirs. Estate taxes typically apply only to estates that exceed a certain value threshold, which can vary by country.

Inheritance Tax: Unlike estate taxes, inheritance taxes are levied on the recipients of the estate rather than the estate itself. Inheritance tax rates may depend on the relationship between the deceased and the beneficiary, with closer relatives often facing lower tax rates.

6. Payroll Tax

Payroll taxes are deducted from employees' wages and are used to fund social security programs, unemployment insurance, and Medicare or similar health care programs. Both employers and employees typically contribute to payroll taxes.

Social Security Tax: This tax is used to fund government programs that provide retirement, disability, and survivors' benefits. In most countries, employees and employers both pay a portion of this tax, and it is calculated as a percentage of the employee's wages.

Medicare Tax: Medicare taxes fund health care for the elderly and disabled. Like social security tax, it is deducted from an employee’s wages and matched by their employer.

Conclusion

Taxes come in many different forms and serve as a critical tool for governments to generate revenue and fund public services. From income and sales taxes to excise and property taxes, understanding these different types can help individuals and businesses manage their financial obligations effectively while contributing to the greater good of society.

[georgeshutcheson]

How to File a VAT Return Online

New Post has been published on https://www.fastaccountant.co.uk/how-to-file-a-vat-return-online/

How to File a VAT Return Online

Are you a business owner in the UK looking to file your VAT return but not sure where to start? Don’t worry, I’ve got you covered! Filing a VAT return can be a daunting task, but with the right information and guidance, you’ll be able to navigate the process smoothly. In this step-by-step guide, I’ll walk you through the process of how to file a VAT return in the UK so you can stay compliant with HM Revenue & Customs (HMRC) regulations without breaking a sweat.

Understanding VAT and Why It’s Important

Before we dive into the nitty-gritty of how to file a VAT return, it’s essential to understand what VAT is and why it’s important for your business. VAT, which stands for Value Added Tax, is a consumption tax that is added to the price of a product or service at each stage of the production and distribution chain. As a business owner, you are required to charge VAT on your sales if your taxable turnover exceeds the VAT registration threshold set by the government.

Why is VAT Important?

Understanding the significance of VAT is crucial because it impacts your business’s bottom line. Failing to comply with VAT regulations can result in penalties and fines from HMRC, which can significantly impact your business’s financial health. By filing your VAT return correctly and on time, you can avoid unnecessary costs and ensure that your business stays on the right side of the law.

VAT Registration and Getting Your VAT Number

The first step in filing a VAT return in the UK is to register for VAT if your taxable turnover exceeds the VAT threshold. Once you are registered, HMRC will issue you a unique VAT number that you will use for all communication and transactions related to VAT.

How to Register for VAT

You can register for VAT online through the HMRC website or by completing a VAT1 form and sending it to HMRC by post. When registering, you will need to provide details about your business, including your company name, address, and turnover. HMRC will then review your application and issue you a VAT number if approved.

What to Do Once You Have Your VAT Number

Once you have received your VAT number from HMRC, you must start charging VAT on your sales as per the standard rate set by HMRC. You are also required to keep accurate records of all your transactions, including invoices, receipts, and expenses, to ensure you can file your VAT return correctly.

Choosing the Right VAT Scheme for Your Business

HMRC offers different VAT schemes that allow businesses to calculate and pay their VAT in a way that suits their operations. It’s essential to choose the right VAT scheme for your business to ensure you comply with VAT regulations and manage your cash flow effectively.

Different VAT Schemes Available

Standard VAT Accounting: Under this scheme, you pay VAT on your sales and claim VAT on your purchases.

Flat Rate Scheme: This scheme allows you to pay a fixed percentage of your turnover as VAT. It simplifies the process of calculating VAT but may not be suitable for all businesses.

Cash Accounting Scheme: With this scheme, you only pay VAT when your customers pay you, and you can reclaim VAT on your purchases when you pay your suppliers. It can help you manage your cash flow more effectively.

Choosing the Right Scheme for Your Business

When deciding on a VAT scheme for your business, consider factors such as your turnover, expenses, and cash flow. If you’re unsure which scheme is right for you, it’s best to seek advice from a tax professional who can guide you based on your specific circumstances.

Keeping Accurate VAT Records

Maintaining accurate records of your VAT transactions is crucial for filing your VAT return correctly and avoiding any penalties from HMRC. Make sure you keep all your invoices, receipts, and expenses organized and up to date.

What Records to Keep

Sales Invoices

Purchase Invoices

Receipts for Expenses

VAT Returns

Bank Statements

How to Keep Records Organized

You can use accounting software or spreadsheets to keep track of your VAT records. Make sure you reconcile your records regularly and have a system in place to store and retrieve documents easily when needed.

Calculating Your VAT Liability

Calculating your VAT liability involves determining the amount of VAT you’ve charged on your sales and the VAT you’ve paid on your purchases. This information will help you complete your VAT return accurately and ensure you pay the correct amount of VAT to HMRC.

How to Calculate Your VAT Liability

To calculate your VAT liability, follow these steps:

Total VAT charged on sales

Total VAT paid on purchases

Subtract VAT paid from VAT charged

The result is your VAT liability

Common Mistakes to Avoid

Not including all sales and purchases in your calculation

Failing to account for zero-rated or exempt sales

Misinterpreting VAT rules and rates

How to File a VAT Return

Once you have all your VAT records organized and your VAT liability calculated, it’s time to file your VAT return with HMRC. Most VAT-registered businesses are required to submit their VAT returns electronically. Here are the options for submitting your VAT return online:

Making Tax Digital (MTD): If you use accounting software that’s compatible with MTD, you can submit a VAT return directly through the software. Follow the user guide of your preferred accounting software to do this.

Appointing an Agent or Accountant: You can authorize an agent or accountant to submit your VAT return on your behalf.

VAT Online Account: If you’re part of the VAT Annual Accounting Scheme, you can use your VAT online account to submit your return. However, this option is available only for specific cases.

Paper Returns: In exceptional circumstances, you can submit a paper VAT return. Examples include religious objections to using computers or lack of internet access. If eligible, HMRC will send you a paper return.

Paying Your VAT Liability

After filing your VAT return, you will need to pay any VAT liability to HMRC by the due date to avoid penalties and fines. Make sure you have the necessary funds available to pay your VAT liability on time.

How to Pay Your VAT Liability

You can pay your VAT liability through various methods, including:

Direct Debit

Bank Transfer

Debit or business Credit Card

Late Payment Penalties

If you fail to pay your VAT liability on time, HMRC may charge you penalties and interest on the outstanding amount. It’s crucial to meet your payment deadlines to avoid unnecessary costs and maintain a good relationship with HMRC.

Reviewing Your VAT Return

Once you have filed your VAT return and paid your VAT liability, take the time to review your return to ensure all information is accurate and complete. A thorough review can help you identify any errors or inconsistencies and rectify them before HMRC conducts an audit.

What to Look for When Reviewing Your VAT Return

Check that all sales and purchases are included

Verify the accuracy of VAT calculations

Review any zero-rated or exempt transactions

Confirm that your payment details are correct

Benefits of Reviewing Your VAT Return

Minimizes the risk of errors

Ensures compliance with VAT regulations

Demonstrates diligence and responsibility

Seeking Professional Advice

If you’re unsure about any aspect of filing your VAT return or need help navigating the process, don’t hesitate to seek professional advice. A tax professional or accountant can provide you with guidance and support to ensure you file your VAT return correctly and efficiently.

When to Seek Professional Advice

If you’re unsure about which VAT scheme is right for your business

If you’re struggling to calculate your VAT liability

If you need help with complex VAT transactions

If you’re facing challenges with HMRC

Conclusion

To file a VAT return in the UK doesn’t have to be a daunting task when you have the right information and guidance at your disposal. By understanding the VAT process, choosing the right VAT scheme, keeping accurate records, and filing your return correctly, you can ensure your business stays compliant with HMRC regulations and avoids unnecessary penalties. Remember, if you need help or have any questions along the way, don’t hesitate to seek professional advice to make the process smoother and more manageable. Happy filing!

[vat-calculator007]

Unlocking Financial Efficiency: Your Guide to VAT Calculations

In the fast-paced world of business, managing finances efficiently is crucial. Whether you’re a small business owner or handling the financial aspects of a larger enterprise, understanding and calculating Value Added Tax (VAT) is a fundamental skill. In this blog post, we’ll explore the significance of VAT calculations and introduce a handy tool that can streamline the process.

Introducing VAT Calculators: It’s not just a website; it’s a valuable resource for anyone dealing with VAT calculations. Let’s delve into some of the features that make this platform stand out:

User-Friendly Interface: The website offers a clean and intuitive interface, making it easy for users to navigate and access the calculators they need.

Versatile Calculators: From basic VAT calculations to more specific scenarios like Reverse VAT or Flat Rate Scheme calculations, the website provides a range of calculators catering to different needs.

Real-Time Results: The calculators on the website provide instant and accurate results, saving users time and effort in manual calculations.

How to Use the Calculators: Using the calculators on this website is a breeze. Simply choose the calculator that corresponds to your needs, enter the relevant details, and let the tool handle the calculations. It’s a simple yet powerful way to enhance your financial efficiency.

TaxJar:

Website: TaxJar provides sales tax automation solutions, helping businesses manage their tax obligations, including VAT.

Time Savings: The real-time results ensure that you get your VAT calculations done swiftly.

Accuracy: Say goodbye to manual errors; the calculators provide precise results.

Versatility: Whether you’re a sole trader or managing a larger business, there’s a calculator for you.

Conclusion: Efficient financial management is the backbone of any successful business.you have a reliable ally in your journey towards financial efficiency. Embrace the convenience, save time, and ensure accuracy in your VAT calculations. Take charge of your financial landscape and let technology simplify the complexities.

[radkindoffeminist]

@stumblngrumbl

My response will be too long in the comments. As an economist and accountant (or accounting trainee? Not long started) and as someone who lived in Scotland for some years, I know a thing or two about taxes which are in the UK.

The only difference I know of between Scotland and the rest of the UK is that they have marginally different rates for income tax. See below:

Note that these are marginal tax rates! So if you are earning £30k a year in England (national average I believe) then you will be paying 0% on £12,570 and 20% on the rest of your income, not a flat 20%. (This is why I had previously used effective tax rates in my argument above -marginal is useful to compare how much extra you can expect but effective is much more useful for a direct comparison between incomes, especially across countries and especially when a progressive tax rate is used rather than a flat rate.)

Then there is national insurance (NI) which is typically 12% up to £50k/year and 2% over that. (NI is a bit of a weird one because there are people who have 2% or 0% NI rates but most workers are on the 12%/2% standard.) National insurance contributions were counted into my calculations above: if you earn £30k then 18% of your income goes into income tax or NI. Interestingly, you don’t pay NI if you are over retirement age (which I believe is currently 66).

You mention pension taxes which is actually a weird one because pension contributions in the UK are not taxable and actually reduce the income tax you pay! As in, if you earn £45k/year and pay £2k/year then your income tax is based on you earning £43k/year. So long as your pension contributions are less than your annual earnings and total less than £60k/year. See the difference below between £30k no pension and £30k paying 5% pension (which is relatively standard).

There are five more taxes which I can think of as applying to day to day life: VAT (sales tax); Road tax; council tax; fuel duty; and TV licence.

VAT is typically 20% of purchases. Some items are 0% or 5% (normally essentials) but most are 20%. Road tax is £180/year if you own a car (some variations for new or expensive cars and electric cars are £0 but mostly it’s £180). Council tax is the thing that varies most as it’s based on the council you live in and the value of your house. Around where I live the cheapest is £1300/year and the most expensive is £4000/year. Exemptions apply to low income and students; discounts for people living alone as well. Fuel duty is set at 53p/litre (which currently makes it a rate of around 40% of petrol costs). And a TV licence isn’t technically a tax but I’ve included it as it’s money that you have to pay if you own a TV which you use to watch live or recorded TV shows or use BBC iPlayer. It’s like £150/year.

There’s also specific taxes on alcohol and tobacco but I know less about these ones.

I could go on about a bunch of different taxes that people might pay, such as on dividends received or capital gains, but the ones mentioned above are the ones which most people are going to be paying regularly.

Men with bruised egos are so fucking funny. I love watching them constantly trying to defend themselves and make it out like I’m wrong and stupid when their point doesn’t even disagree with mine.

Me: These are the tax rates in the UK. This means that the effective tax rate at £30k is 18% and at £60k it’s 27%.

Man: You lose personal allowance over £100k making the effective tax rate 60%.

Me: Yes, over £100k you begin to lose the personal allowance and therefore that portion is ‘taxed higher’ but the effective tax rate is still 37%

Man: Between £110k and £120k, 60% of additional income goes towards tax.

Me: Yes, the MARGINAL tax rate is 60%. The effective tax rate changes from 35.5% to 37.8%. Do you have a point?

Man: A 60% tax bracket does exist. Do all Americans talk about tax as a whole? (Side note: This was because the original TikTok was saying that British people are taxed at 60% to find the NHS/government.)

Me: I’m British. Effective tax rate is a commonly used comparison and was used in my economics degree.

Man: Get a refund for your degree because marginal rates are always used and the general public references the brackets.

Me: Marginal and effective tax rates are both used in economics. Well done!

Man: Effective rates aren’t really used.

Me: Who are you to tell me what is used?

Man: You can use it if you want but you’ll be a minority in your field.

Me: So you have no qualifications? You’re just angry that a woman is smarter than you and that bruised your ego.

Man: You’re the one being wrong and throwing your degree around.

Me: You used the term effective tax rate wrong and you have the audacity to tell me that I’m wrong? 😂😂😂

Man: Economics degrees always use marginal tax rates and any worthwhile degree will teach you that.

Me: They teach both as they’re both useful comparisons in different contexts. Source: I have a masters degree in economics and you don’t.

[fromtheglasscloset]

Pleasing Prices

The unfortunate reality of currency conversion in online shopping, and how to lower its impact on your purchases. A.k.a you might be spending more than you need on your favourite foreign brands.

Hi, I feel the need to preface this post with a few things:

1. I love Harry 🤍.

2. Yes this post is brought on by Pleasing, and uses the site as an example, but this is not a problem unique to Pleasing.

2. Currency conversion can be unfair.

3. Most of this is handled by 3rd party services - not the shopping site.

4. This is perfectly legal.

5. Examples are from my personal experience with buying the 'perfect polish set' using a foreign currency.

6. All prices have been converted to USD.

7. For this post: HC = Home country.

8. There is a lot of math in the post explaining things, but you don't need to understand it to benefit from the steps.

Okay let's go!

Btw: The Perfect Polish Set is listed as $65

No changes (Delivery to HC vs UK)

I live in europe and if I would have just gone to the site, put the set in my bag and payed I would have payed $132.42, broken down to price: $68.86 + shipping: $63.56.

Now, I have family in the UK and was curious what they would pay. So with just changing the mailing address I get price: $66.59, shipping: $9.84, tax: $15.36 (total $91.79)

In shop Currency Conversion

Weird that the price isn't the same and isn't the same as the $65 price listed either, right?

Well, no, not really. This is because the site/service doesn't necessarily use the same conversion as your bank.

So let's not let the site do the conversion, set the currency to USD (or whatever the 'official currency' of the shop is.)

Setting the currency to USD

UK: Change the currency, check out as usual.

HC: For some reason I could not checkout with the USD prices while I was logged in. However I could do it if I used 'check out as guest'

Result:

My currency converted vs USD

HC: $68.86 vs $65

UK: $66.59 vs $65

This might not be a huge difference in this case, but why pay more than you need.

Shipping & Tax

Another thing I noticed, was that originally when I was checking out using my HC, the breakdown only showed the price and shipping. Whereas using the UK I got price/shipping/tax. So originally I had assumed I would still need to pay tax on arrival on top of the $130+ I was looking at.

However, when I used 'checkout as guest' I could see both shipping: $36.4 & tax: $25.21. Which combined is lower than my original 'shipping'. Leading me to believe the tax was already added, but for some reason not visible.

Note here that the 'tax' might include costs that are enforced by your country for example a VAT processing fee. I recommend checking your regulations and seeing if the number makes sense.

End result

So, those changes resulted in:

Shipping to HC: Saved $5.82 / ~4.6%

$132.42 》$126.6 (later one listed with shipping & tax)

Shipping to UK: Saved $3.03 / ~3.4%

$91.79 》 $88.74

Scalability

Of this one nail set, this might not seem like a lot. But all of these numbers are scalable. The currency conversion is always going to be some % higher, not a flat number. The tax is then calculated as a % based on that raised number.

So if this was something more expensive you were buying, let's say $500, for my currency rate was about 6% worse, and 20% tax (UK)

Currency: $500 -> $545 -> add tax -> $654

USD: $500 -> add tax -> $600

So the more you are spending the worse this will hurt your wallet.

Hoping this might help you lovelies save a few $ in the future ♡

Note: if you think this is an attack on H or Pleasing, please read the 'preface' part again.

[guylty]

Our new baby is here! From my first tentative and spontaneous question to Ali re. rescuing the site (1 November), via the hand-over (25 November) and the developers starting work after our fundraiser in early December, Richardarmitagenet soft-launched in early January. Looking back, I am amazed how fast it all went – three months from a vague idea to rescue the site from being switched off, to a fully migrated website. Four developers were involved in migrating the site and restructuring it to my specifications. They worked a total of 173 hours on the site. I was involved in the background, helping with the categorising of the site, confirming links and testing the site as the development progressed. The guiding principle was to save all existing content, and to my knowledge the developers have done exactly that. The galleries, news timeline, interviews, clips and fan submissions were all transferred – an invaluable wealth of information that is now accessible again for all fans.

The reason I hadn’t announced the relaunch of the site to big fanfare, is really that after the migration and restructuring of the site, I was still tinkering with the site. Lots of little bits – setting up new e-mail addresses for the site, repairing broken links, updating contact details etc. – as well as familiarising myself with the new backend (which looks a bit different to what I am used to from my own WP site), meant I was dawdling because I wanted to set it all up before I officially declared the site relaunched.

Adjustments and Features

If truth be told, there are probably still a few constructions sites on RAnet. Any new baby eventually comes with teething problems. Which you may have noticed if you have been visiting the site over the last couple of weeks. But yesterday I finally got around to ticking off several major adjustments:

New e-mail addresses connected to the richardarmitagenet.com domain have been created so that fans can get in touch with the site for news or comments – news (and questions) can be sent to news@richardarmitagenet.com

A new guestbook has been added to the “Fans” category in the main menu

A calendar of events is now visible in the side bar where upcoming release dates, events and appearances of Richard can be checked

A new page for radio clips was added to the “Press” category

And the broken links to the all-important news archives 2009 to 2015 were repaired and will now provide access to the news of yesteryear again.

With the new e-mail address established, I opened a new Twitter account for RAnet (allowing Ali to keep the old account through which she is connected with her friends). You can follow it @RAnetTweets.

Going Forward

Since its soft-launch, I have been updating the News section on RAnet again. As in the past, news will be added in a timely fashion, although not necessarily individually as news items are coming in, but whenever I have the opportunity to do so. Going forward, I am happy to continue that job and the general admin of RAnet (uploading interviews, clips etc.), but I may look for co-admins who can look after some of the other sections of the site – particularly the galleries come to mind. There may also be an opportunity to hand-over the management of the RAnet Twitter account, depending on how active that account is going to be. I intend to keep my own blog going, too, so I am keen to open RAnet to co-admins in order to spread the workload and to “uncouple” it from me as its sole proprietor – not least because I’d like it to continue to be the neutral, classy, unopinionated resource it has always been, enabling its use unimpeded by potential personal dislike of *me* as a person. The site is *your* site, made by fans and for fans, and its use as a resource for the fandom is the top priority. In the meantime, please do have a look at RAnet, click through the various sections, and if you find broken links or have suggestions, do let me know. But most of all: Enjoy and pat yourself on the back – your support of the fundraiser has enabled the rescue and relaunch of RAnet. Thank you!

Accounts

Speaking of the fundraiser – that brings me to the final accounts of the rescue operation aka web development. For auditing purposes, so to speak, these are the accounts of the whole project: Our fundraiser in December 2019 generated a total of €1738.77 after postage and fees. You may remember that I had written in an earlier post that I had agreed with the developers on a flat rate fee of €1550. (I had deliberately given them a slightly smaller budget than our available total funds, for two reasons: a) contingency, and b) I had hoped to have a little money left over for a big bouquet of flowers to be sent to Ali for her invaluable work over the years.) Unfortunately the final invoice exceeded €1550 because the developers had to charge me VAT. (Originally we had calculated the total fee ex-VAT because the invoice would be transacted through my work account. However, in the end that was not possible due to tax laws that require me to have a special tax number for electronically supplied services within the EU.) So, the final fee was €1797. I have topped up our fundraising proceeds with the missing €60. All bills have been paid and the transaction has therefore been finalised. For your information, I am including the invoices below. (Addresses blanked out for privacy reasons; if anyone wants to see the invoices unblanked,  get in touch and I can show them to you bts.)

#gallery-0-7 { margin: auto; } #gallery-0-7 .gallery-item { float: left; margin-top: 10px; text-align: center; width: 33%; } #gallery-0-7 img { border: 2px solid #cfcfcf; } #gallery-0-7 .gallery-caption { margin-left: 0; } /* see gallery_shortcode() in wp-includes/media.php */

First instalment December 2019

Second Instalment January 2020, part 1

Second Instalment January 2020, part 2

And proof of the transaction via receipts from my bank:

#gallery-0-8 { margin: auto; } #gallery-0-8 .gallery-item { float: left; margin-top: 10px; text-align: center; width: 25%; } #gallery-0-8 img { border: 2px solid #cfcfcf; } #gallery-0-8 .gallery-caption { margin-left: 0; } /* see gallery_shortcode() in wp-includes/media.php */

Right, and that concludes the financial review.

I now declare Richardarmitagenet open 😀

  RAnet Has Relaunched Our new baby is here! From my first tentative and spontaneous question to Ali re. rescuing the site (1 November), via the hand-over (25 November) and the developers starting work after our fundraiser in early December, Richardarmitagenet soft-launched in early January.

[continuations]

Universal Basic Income: An Introduction

Here is the text of a speech I gave at the 72nd Annual NYU Labor Conference, which this year was on AI and Automation.  Unfortunately there is no recording - I stuck relatively closely to this, but didn’t read it.

----------

Universal Basic Income: An Introduction

Thank you for the opportunity to speak to this audience about Universal Basic Income. I am approaching this topic from the perspective of a venture investor who backs companies that automate tasks ranging from image recognition to medical diagnosis, as well as someone who has thought and written about automation for nearly three decades going back to my undergraduate thesis on automated trading in 1990.

For anyone unfamiliar with the term Universal Basic Income or UBI, it refers to a payment to every citizen that is unconditional, i.e. paid independent of employment status or income. A commonly used number is a monthly payment of $1,000 per adult and less per child. The idea for such a scheme in the United States is quite old and an early mention can be traced all the way back to Thomas Paine’s 1795 pamphlet on “Agrarian Justice.” Proponents over the years have come from all over the political and ideological spectrum, ranging from Milton Friedman to Martin Luther King Jr.

If I have done my math correctly, the first Annual NYU Labor Conference took place in 1947 at what we can now recognize as the beginning of the golden era of the Industrial Age. A period that lasted for 40 some years during which market based economies produced exceptional growth with the benefits shared between capital and labor. For the last twenty plus years, however, the benefits of growth have accrued primarily to the owners of capital in what has become known as the great decoupling, which is attributable to the twin effects of automation and globalization.

Given this impact of automation on labor it is not surprising that this section of the conference has the word “Mitigation” in its title. UBI is often positioned defensively: “Automation will take away your job, but here is some money.” This framing is deeply problematic. At best it makes UBI appear like another welfare policy and at worst it carries a ring of “opium for the people” -- a way of keeping the working population docile while capitalists get richer.

How then should people think about UBI? In my book World After Capital, I refer to it as “Economic Freedom.” Why? Because UBI massively increases individual freedom. It provides a walk away option from a bad job, a bad spouse or relationship, even from a bad city. As such it also provides new found bargaining power in the labor market for the roughly 40% of Americans who are part of the precariat. At its most fundamental, UBI makes people free in how they allocate their time. They can choose to work and make more money or they can choose not to and instead spend their time on friends and family, or art, or science, or politics, or the environment, or any of the millions of things humans do outside of the labor market.

There is another crucial distinction between the defensive, mitigation framing and the offensive, freedom framing of UBI. The former implies that we are stuck in the Industrial Age, whereas the latter carries the possibility of a new age, which I call the “Knowledge Age” in my book. The defining characteristic of the Industrial Age isn’t “industry” -- as in manufacturing -- rather it is the job loop: people sell their labor and use their income to buy “stuff” (goods and services), which in turn is made by people selling their labor.

Employment in agriculture declined from 90% of all jobs in 1780 to below 3% today. This change is often taken to show that we successfully replaced agricultural jobs with other jobs and that we can and should do so again now: automate existing jobs only to replace them with new and different jobs and thus stay in the job loop of Industrial Age. But that reading shows a lack of imagination. A different interpretation is that something that once occupied the bulk of human attention, producing enough food to feed the population, has been reduced to an afterthought.

Well, what occupies the bulk of our attention today? The job loop. Paid labor. If we succeed in enabling automation to its fullest extent, if we succeed in transitioning into the Knowledge Age, then 100 years from now we will have done to paid labor what we did to agriculture. A reduction from something that occupies 80 percent or more of human attention today, to something that’s barely noticeable.

It is crucial that we free up human attention now because too many important problems are going unsolved. The market based system has been so successful that it has solved the problems it can solve, leaving us with the ones it cannot. Prices do not and cannot exist for events that are rare or extreme. There is no price for a human finding their purpose. There is no price for preventing an asteroid impact. There is no price for averting a climate catastrophe. Because we are relying on the market to allocate attention, we are paying far too little attention to these crucial issues and far too much attention to making money and spending it on stuff.

UBI then is a central pillar of a new social contract that enables a transition to the Knowledge Aga, a transition that is as profound as the one from the Agrarian Age to the Industrial Age. What replaces the job loop? In World After Capital, I suggest that the answer is the Knowledge Loop, in which we learn, create and share knowledge -- broadly defined to include not just science but also art and music.

Now of course there are many objections to UBI. Most of these, such as people spending money on drugs, or an immediate collapse in the supply of labor, are easily dismissed by the evidence from UBI trials around the world going back to the famous 1970s Mincome experiment in Canada, all the way to the currently ongoing Kenya study by Give Directly. There is also indirect evidence that contradicts these objections, such as the by now well documented benefits to the Native American population from casino licenses.

I will therefore focus on two objections, one practical and one philosophical, that are not so readily addressed by the available evidence.

The practical objection that looms largest is that UBI is simply not affordable. Almost every analysis that comes to this conclusion makes two mistakes. First, looking at a gross instead of net expenses. Second, examining payments from a fiscal perspective only.

The gross expenses in the United States would amount to something like $3.3 trillion or roughly the same as all Federal revenues. Net expenses, however, would be quite a bit smaller. In conjunction with introducing a UBI, it is crucial to modify the tax code so that income tax is paid starting with the first dollar earned. A large fraction of the population that is currently not paying federal income tax, Mitt Romney’s infamous 47% remark, would instantly owe some amount of income tax. And of course for people already paying taxes the net transfer is also smaller. At a 35% flat tax rate on all income, whether from labor or capital gains, as well as eliminating various deductions, the net expense required for a UBI is on the order of $1.5 trillion. And this is a completely static calculation which does not assume any GDP growth benefits of UBI, which have been estimated as high as $2 trillion dollars.

$1.5 trillion in new expenses still sounds like an impossibly large amount. But with a UBI in place it becomes possible to eliminate some programs such as food stamps and TANF entirely and modify other programs, such as Social Security, for savings on the order of $500 billion. Now to cover the remaining $1 trillion there are various proposals worth considering including a carbon tax, a financial transactions tax and a VAT -- the latter being favored by 2020 Democratic presidential candidate Andrew Yang. Some combination of these could cover the entire remaining $1 trillion.

But we should also consider a fundamentally different approach to implementing a UBI. I am talking about moving from fractional to full reserve banking, something that has historically been favored by economists from the Austrian school, as well as by Milton Friedman, whom I previously mentioned as a UBI advocate. Since the 2008 financial crisis, we have created annually on the order of $500 billion in M2 money supply. This money creation in a full reserve banking system would be possible as direct payments into citizens’ UBI accounts. Instead of letting commercial banks decide where newly created money enters the economy, it would enter equally for everyone. That would make it harder for someone like myself to get a mortgage for a second or third home, but would make it possible for many people to afford a first one.

At the $500 billion annual level we are simply matching the current money supply growth, which has not been inflationary. It is, however, possible to fund more and potentially all of UBI that way instead of via taxation. Wouldn’t that result in inflation? Won’t prices simply go up to offset the new money created? If we wanted to fund more of UBI that way we would have to also institute some form of demurrage, for instance through negative interest rates. Doing so will become much more readily possible with “programmable money,” a better term for what is often referred to as crypto currencies.

All in all though the key takeaway here should be that through some combination of changes in the tax code, elimination and modification of existing welfare and social programs, and some new taxes and/or changes to the banking system, it is entirely possible to finance a UBI. The fact that this is possible shouldn’t be surprising, seeing how even at the gross expense level of $3.3 trillion, a UBI represents only 15% of GDP.

Now on to the philosophical objection. This is the claim that removing the need to work in order to earn a living robs people of their purpose. While strongly held today, this view of human purpose would strike people from other time periods such as the middle ages or antiquity as absurd. They would have answered that human purpose is to follow the commandments of religion, to be an upstanding community member or to be a philosopher.

Why is it so difficult for us today to disentangle our job from our purpose? Well we have spent the last two hundred years or so telling people from practically the day they are born that finding and succeeding at a job is their purpose. It is deeply woven into our culture as part of the protestant work ethic. And it has become the singular goal of education. The current obsession with STEM education is not because of the need to solve difficult problems, such as climate change, but rather because of a belief that people with a STEM degree will find a better job. This of course should not come as a surprise as the modern education system was designed for the Industrial Age. So education too is something we will have to change.

By now you might say that clearly I must be crazy. I want to introduce a UBI, revise the tax code substantially, even alter how money is created in the economy and change the education system to boot? Any one of these seems impossible, let alone all of them together.

We can’t change this much. And yet we have done so twice already. After living as foragers for millions of years — 250,000 of those as Homo sapiens — we changed everything when we transitioned into the Agrarian Age roughly 10,000 years ago. We went from migratory to sedentary, from flat tribes to highly hierarchical societies, from promiscuous to monogamous-ish, from animist religions to theist ones. Then again only a couple hundred years ago we changed everything when we transitioned from the Agrarian Age to the Industrial Age. We moved from the country to the city, we switched from  living in large extended families to living in nuclear families or no family at all, we went from lots of commons to private property (including private intellectual property), we even changed religion again going from great chain of being theologies to the protestant work ethic.

Each of these massive changes in how humanity exists were in response to a huge shift in our technological capabilities. Agriculture allowed us to create artificial food supply. Industrial technology allowed us to create artificial power. And digital technology now allows us to create artificial intelligence. Digital technology is as big a change in our capabilities as those two prior ones, it is not simply a continuation of the Industrial Age. We should expect to have to change everything rather than getting away with a few incremental patches here and there.

In conclusion: UBI is not a mitigation measure, keeping us trapped in the Industrial Age. UBI is a necessary, but not a sufficient, enabler of the Knowledge Age. We need to change pretty much everything else about how we live as well, including education, healthcare, the intellectual property regime, and much much more.

[filetaxme]

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For example, certain sectors such as oil and gas exploration, free zones, and renewable energy projects are eligible for tax holidays. Additionally, companies may be eligible for reduced tax rates or exemptions in specific cases. The UAE has a strong commitment to maintaining a competitive corporate tax rate, and this has helped to attract foreign investment and contribute to the country’s economic growth.

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