Surviving the recession in difficult trading conditions

SURVIVING THE RECESSION IN DIFFICULT TRADING CONDITIONS

Surviving the recession in difficult trading conditions, how the tax man will take more money but doing nothing to help you survive the recession.

The government receives an income that it generally wastes on bureaucracy and mismanaged services run by bureaucrats who would not survive in the business world. In fact, if we all ran our businesses in the same way as councils, government departments and public services, we would have all gone bust years ago. The income the government receives comes in many forms but is known under the general heading of tax and luckily for the government it has a certain degree of control over this income as it has the power to raise taxes in any form as often as it likes. Furthermore, these taxes have to be paid by us whether we like it or not because the taxman has the monopoly and the power to extract any taxes he feels we owe.

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These taxes come in many shapes and forms. Corporation tax which is paid by companies on any profits they make, income tax which is paid on the greater proportion of income that we earn and unearned income from what little savings most people try to accrue.

Then there is value added tax. All businesses that are VAT registered have to pay the government the difference between the VAT they charge and the VAT they are charged on any goods or services they buy.

You as an individual having paid income tax on the income you earn have to pay value added tax on virtually everything you buy or service that you pay for. You also pay tax on fuel you use in your car, road tax on your car and if you are the main resident of a property, you are also paying tax to your local council. You also pay stamp duty when you buy a half reasonable house and the latest tax on selling a house which are called home information packs.

So, if you have no money at the end of the month and ask yourself where the hell it all went, you now know that one way or another the Government got the bloody lot and they plan on frittering it away faster than you did and will be coming back for more.

Unfair bank charges

Asset Finance

Commercial Mortgages

Bridging loans

I mentioned earlier that the government has a certain degree of control over their income because they have the power and believe the "God given right" to take as much as they want and waste it on over inflated incomes for senior civil servants who then chuck it around like confetti in the wind. However, they can only do this if you and everybody else are earning money.

However, the government's ability to control their income ceases when the economy goes into recession and businesses start to go bust, unemployment starts to rise and income levels drop. No government can extract blood from a stone and when companies and individuals no longer have the means to keep paying their taxes, the government's income starts to fall. If this hasn't already happened, it is likely to cut in over the next few months.

This is known in government circles as "the shit hitting the fan" and if it continues for too long, politicians and civil servants around Whitehall can be heard muttering things like "the figures don't add up" or "we are going to have to tighten our belts" which to you and I in simple language means "they have fucked up."

Making money in a recession