Barclays. 1% corporation tax on 11.6BN profit
Discussion
Have we covered this yet? I need their accountant. That is all.
http://www.guardian.co.uk/business/2011/feb/18/bar...
http://www.guardian.co.uk/business/2011/feb/18/bar...
hornetrider said:
Have we covered this yet? I need their accountant. That is all.
http://www.guardian.co.uk/business/2011/feb/18/bar...
You and me both. http://www.guardian.co.uk/business/2011/feb/18/bar...
It is a non-story. Or to be more accurate it is a story being deliberately twisted to make it look as if Barclays has done something wrong.
Companies only pay UK corporation tax on the profits made in the UK. The vast bulk of Barclays's profits were made overseas.
There is an implication in the BBC's report on this that Barclays would have paid more corporation tax if they had not paid £3.4bn in bonuses. However a quick calculation shows that by paying profits as bonuses (which are subject to income tax, employers NI and employees NI) rather than as dividends (after corporation tax but then subject to income tax) resulted in circa £500m extra being paid in tax. If the bonuses were then spent there would be further benefit to the taxman via VAT etc. Even if the bonuses were put in savings the interest earned would be suject to income tax.
Companies only pay UK corporation tax on the profits made in the UK. The vast bulk of Barclays's profits were made overseas.
There is an implication in the BBC's report on this that Barclays would have paid more corporation tax if they had not paid £3.4bn in bonuses. However a quick calculation shows that by paying profits as bonuses (which are subject to income tax, employers NI and employees NI) rather than as dividends (after corporation tax but then subject to income tax) resulted in circa £500m extra being paid in tax. If the bonuses were then spent there would be further benefit to the taxman via VAT etc. Even if the bonuses were put in savings the interest earned would be suject to income tax.
motco said:
IFAIK it's perfectly normal to offset previous year's losses against tax. Why is Barclays being singled out for criticism?
Because everything is the banks fault (apparently).The Labour MP who is pushing this story says it is evidence of the current governments failure to "take the robust action needed to make sure that the banks which caused the crash pay their fair share."
So to clarify for anyone who missed that, he is claiming that it is the current (i.e. the one formed following the general election on 6th May 2010) governments fault that Barclays corporation tax bill for the period 1st January 2009 to 31st December 2009 was too small.
hornetrider said:
Have we covered this yet? I need their accountant. That is all.
http://www.guardian.co.uk/business/2011/feb/18/bar...
My initial thought was they must have good accountants.http://www.guardian.co.uk/business/2011/feb/18/bar...
However, it seems that they have just caried forward last year's losses. The left wing politicians and media will spin the story to their advantage. Disgusting behaviour.
Don
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Pretty much in agreement with everything said so far. The media's irresponsible reporting continues on the issues of the UK's banking industry - the amount of hate out there is increasing daily as more stories like this are spun in such a way to provoke outrage. The Guardian's piece I don't think even really mentions why the rate was so low, i.e. bringing forward losses.
Is it only a matter of time that the lynch-mob mentality apparent on the internet (comments on various articles etc), spill out into the real world and we see violence against those in finance? Though banks should accept some responsibility, what of government policies more than a decade ago and general societal greed - which in my opinion has even more to do with the financial crisis? The worst though, have to be the media - irresponsible reporting is so very dangerous and entirely avoidable. But then they wouldn't sell any newspapers would they...
Is it only a matter of time that the lynch-mob mentality apparent on the internet (comments on various articles etc), spill out into the real world and we see violence against those in finance? Though banks should accept some responsibility, what of government policies more than a decade ago and general societal greed - which in my opinion has even more to do with the financial crisis? The worst though, have to be the media - irresponsible reporting is so very dangerous and entirely avoidable. But then they wouldn't sell any newspapers would they...
ralphrj said:
Because everything is the banks fault (apparently).
The Labour MP who is pushing this story says it is evidence of the current governments failure to "take the robust action needed to make sure that the banks which caused the crash pay their fair share."
So to clarify for anyone who missed that, he is claiming that it is the current (i.e. the one formed following the general election on 6th May 2010) governments fault that Barclays corporation tax bill for the period 1st January 2009 to 31st December 2009 was too small.
Who the hell does the PR and Media stuff for teh Coalition?The Labour MP who is pushing this story says it is evidence of the current governments failure to "take the robust action needed to make sure that the banks which caused the crash pay their fair share."
So to clarify for anyone who missed that, he is claiming that it is the current (i.e. the one formed following the general election on 6th May 2010) governments fault that Barclays corporation tax bill for the period 1st January 2009 to 31st December 2009 was too small.
They are being attacked and blamed for everything they have inherited and just dont fight back...
As above, how the hell can this be the Coalition's fault? Basic Accounting will allow the previous losses to carry forward and this is all based on legislation and rules - let alone trading - that occurred under Brown FFS.
Bloody madness and left wing cr4p. Banker bashing once again. When will people grow up?
fido said:
Fantastic news that a British company makes 11.6BN (and most of it on the IB side). Good luck to them.
Its a bank. It makes money by gambling, taking it from productive industry, pulling it out of thin air, or blackmailing taxpayers.Not a penny of that 11.6Bn will actually be any form of wealth creation.
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