LET THE DUST SETTLE
Many of us sat at work on Tuesday 22 June watching the Chancellor’s emergency Budget unfold. At first it seemed tough, but sensible and considered, even cutting Corporation Tax next year to 27 percent, and by one percent each year for the next three years, to take it down to 24 percent. Then at about quarter past one he announced an increase in VAT from the current 17.5 percent to 20 percent.
The FMB reacted swiftly and sharply warning that the VAT increase will boost informal economy, as consumers resort to ‘cash-in-hand’ to avoid paying VAT on building work.
Richard Diment, Director General of the FMB said: “The VAT increase makes no sense as there is no guarantee that the tax revenue will actually increase for the Treasury. Higher taxes send consumers into the informal economy whereas a low taxation economy stimulates growth.
“This VAT rise will have a disastrous affect on many businesses and people across the UK. The new 20 percent VAT rate will hit the building industry particularly hard as we are still struggling to recover from a recession in which it has been the single biggest cause of redundancies and business failures. Today’s VAT increase will mean 7,500 jobs are lost in the SME construction sector this year. When you include the effects of the multiplier the total employment loss to the UK economy could amount to 23,000 jobs by the end of this year.”
Some clients might suggest pre-paying you for work to be carried out in 2011. As long as the amount is less than £100,000 and is for a genuine contract at arms length, the rate can be 17.5 percent. But you must seek expert advice if you are the least bit unsure.
Members can visit Information and help for advice on the latest rules and regulations.
AND ANOTHER THING…
As an exemplary housewife and general domestic goddess of the highest order, I thought I had dust control sorted. That was until I was invited to a ‘Hilti Dust Experience’ the other day. FMB partner, Hilti has been welcoming visitors to its Hilti Centres in a series of open days this summer where visitors could browse the store, watch demonstrations of the latest Hilti tools, and help themselves to a freshly barbecued breakfast. The highlight of the event for me was an education in dust control. All togged up in PPE including a white suit last seen on a scene of crime offi cer (I’ve kept mine by the way) we stood in an enclosed space to watch a disc cutter slice through a paving slab until the resulting dust made visibility decidedly difficult (see the image on the front cover of this month’s magazine!).
We let the dust out and then the whole process was done again, this time though, the disc cutter had a Hilti vacuum removal system attached. This sucked the dust away from the cutting blade and the air remained ‘gin clear’. Not sure if that’s the technical term for it, but it was a virtually dust free operation. Dust is simply collected, bagged and binned. I don’t know if Hilti has applied its technology to the domestic vacuum cleaner market, but if they have, I’m having one…
