Tag Archives: poverty

What Everyone Needs to Know about Tax: An Introduction to the UK Tax System Book Review

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What Everyone Needs to Know about Tax- An Introduction to the UK Tax System Book Review

What Everyone Needs to Know about Tax: An Introduction to the UK Tax System By James Hannam immediately caught my eye. Sure I have an interest in finance and the workings of the society that we live in, but I have always been interested in tax. Now tax is a good thing; it is how society runs. No tax and no NHS, education or public services at all. But are we overtaxed? I thought that most people are overtaxed before, after reading this book, even more so. As the book points out there is income tax, employee national insurance (of various classes), employer national insurance, VAT, stamp duty, council tax, inheritance tax. The list just goes on. We are overtaxed and the government tries to make some of these taxes as invisible as possible. Did you know that someone on a salary of £26,000 pays almost £8000 in tax a year? Or that the top 0.05% of the UK population pay over a quarter of all income tax? The top 10% of earners pay over half the income tax, which is about 100 billion a year. Just 5% of the population pay more in income tax than the rest of the population put together. How much do you have to earn to be in this top 5%? Just over £50,000 a year. Another great section goes on about how taxes cause the poverty trap that people on benefits can get caught in when they try to get off benefits, they can essentially get taxed at 90%. More than the richest in society. Depressing? Yes. Fair? No. The book also has a great section on pensions versus ISAs. I have always been wary of pensions and the book helped clarify my thoughts.The book is full of great facts like that by a man who really knows his stuff. The book is chock full of essential information and interesting fact. I can highly recommend it to anyone who wants to get a grip of the complex UK tax system.Due to be published by Wiley, 23rd March 2017
£19.99, Paperback and e-bookISBN: 9781119375784“You pay a lot of tax. Of course, you know that. But I bet you don’t know just how much you pay, or all the ways the government has to extract the cash from you.” – James HannamIn his new book, What Everyone Needs to Know about Tax, James Hannam takes look at the UK tax system and provides non-specialist readers with an easy-to-understand explanation of tax and tax policy to show them just how much they pay, how the money is collected and how tax affects ordinary people every day.With no accounting or legal knowledge required, it contains practical case studies to illustrate how tax functions in the real world, for example: how the VAT on a plumber’s bill all adds up; why fraudsters made a movie to throw HMRC off their scent; how a wealthy couple can pay minimal tax on a six-figure income; and the way tracing the money you paid for your iPad sheds light why the EU is demanding Apple pay billions extra in tax.Written in a conversational style, What Everyone Needs to Know about Tax gives readers a real-world look at how tax works. In it they will:

  • Learn about the many ways that the tax system separates us from our money
  • Discover how Brexit could change the way we pay taxes
  • Understand how changing tax policy affects people’s everyday lives
  • See through the rhetoric from politicians and the media surrounding tax controversies

The system’s underlying logic is illustrated through three ‘golden rules’ that explain many of the UK tax regime’s oddities:

  • Lots of small taxes together add up to make big tax bills – “The point of all these taxes is to spread the pain so we notice it less.”
  • No matter what name is on the bill, all taxes are ultimately suffered by human beings – taxes levied on manufacturers are passed on to the consumer through a higher price for the product
  • Taxes are kept as invisible as possible – “Since we all hate paying taxes, the government has perfected the art of ensuring that we rarely have to hand over the money ourselves. Most taxes are paid by businesses on our behalf.”

With tax, there are no easy answers. No one enjoys paying them, but without them, the government would shut down.Whether readers are self-employed, have a general interest in the way the UK tax system works, are a finance or tax professional, or students wanting to understand more about taxation in a break from traditionally dry text books, What Everyone Needs to Know about Tax gives them the background and foundational knowledge they need to be a well-informed taxpayer.What Everyone Needs to Know about Tax will be published on 23rd March 2017 and will be available wherever books and ebooks are sold.
JAMES HANNAM, PHD, has spent twenty years advising clients on every aspect of the UK tax regime while working for firms including EY, Freshfields, and KPMG.

Down and Out Today: Notes From The Gutter by Matthew Small Book Review

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Down and Out Today by Matthew Small Book ReviewI have always been interested in socioeconomics and poverty, and this book from Matthew Small really caught my eye. When my preview copy arrived I read it very quickly. It is a good book. It is well researched and asks important questions. The comparison between poverty in India and poverty in the UK is an interesting one. The truth is there is really no comparison, in India you have slums, in the UK you have a welfare system. The parallels are interesting. You have the Big Issue seller who doesn’t think he is poor because he has what he needs, people who work hard but life beats them down. Those in India with no safety net. Many of the stories in this book haunted me. Especially the one about a a little girl and a baby boy both sleeping on the streets at night. They were alone with no adult, the little girl asleep, using a plastic bag full of rubbish as a pillow and the baby boy, presumably her brother, wearing nothing but a ripped T shirt, bare bottom on the concrete. The baby was gurgling and laughing, playing with a piece of paper on the street, sticking it in his mouth the way babies do. Smalls says he is haunted by this and it is the worst thing he has ever seen but nothing is done. I often think of the child and infant. I have even tried to find them via the internet. I can just hope that someone took pity on them and lifted them from their plight. We live in such a sad world and I can’t help but think more can be done It made me so proud of my own country and our welfare and NHS. You cannot say we do not help the poor. Those who are homeless long term tend to have mental health issues or drug or alcohol problems. Because of this I feel that is where we should turn our efforts in the UK: to those with mental health problems or addiction. This book is a good book but also a haunting one. More importantly, if anyone could let me know what happened to those poor children I would be eternal grateful.

Down and Out Today: Notes from the Gutter is available here.

This is a topical book exploring the meaning of poverty today; questioning whether poverty is specific only to money. The book explores poverty across contemporary society and cultures specifically looking at UK poverty (in Bath) in comparison to India.

Second book from the popular ‘Notes From’ series, with the first book The Wall Between Us endorsed by Jon Snow. The book includes powerful images from Matthew’s travels.

What does poverty mean today? Writer Matthew Small seeks to answer this question and witness the similarities and differences between poverty in the UK and India.

Poverty stretches across all of humanity and by travelling East, Small encounters the raw faces of poverty in India’s slums; he works in a leprosy community, joins the Sisters of Mercy on the littered yet exhilarating streets of Kolkata. He then returns to the UK, to Bath, to see what the passing of three months means to those who are scarred by one of the most unglamorous of all humanities’ ills, being poor.

Small engages with different community members who are living with poverty, to answer these long standing questions: What’s keeping them down? What’s pushing them out? And how can we move forward?

 

 

Statistics From Think Tank NLA Reveal Frightening Extent of London Housing Crisis

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Gillray's Steakhouse and Bar view London EyeSome interesting and shocking news today on the London Housing Crisis. New London Architecture (NLA), the capital’s think tank on the city’s built environment, has today announced a series of findings from their insight study into the London housing shortage. The research gathered by former Development Director at Peabody, Claire Bennie, has formed the basis of their forthcoming exhibition New Ideas for Housing. The exhibition examines London’s housing market, past and present, as well as the results of an extensive global ideas competition, set-up with the Mayor of London to tackle the shortfall.

Current statistics show that the capital’s population has now hit record numbers and is set to keep rising. It is estimated that we need 40,000 new homes every year for 20 years to deal with the current population increase and a further 9,000 a year, on top, just to catch up on the deficit. Current delivery of new homes stands at between 20-25,000 a year, this means the delivery of new homes has to at least double from its current rate.

Earlier this year, London’s population passed its previous peak of 8.6 million people, and future projections suggest there will be 9 million people in London by 2020, 10 million by 2030 and 11 million by 2050, adding nearly 70,000 people and 34,000 jobs every year.

The comparison in quality of life between homeowners and those renting properties is creating a widening gap amongst Londoners. 40-50% of all renting households in London are living in poverty whilst 40% of owner-occupied homes have two or more spare bedrooms. The proportion of 25-34 years olds owning their own homes has fallen from 59% to 36% in less than a decade and the current population figures show that 80% of all new housing is only affordable for 20% of Londoners.

A rise in renting is a common theme throughout the research with a third of all privately owned homes now rented out. Successful European models show that long-term renting can act as a possible solution, but this would mean a large-scale change across the industry in the way that housing is funded and delivered. Developers such as Argent are already looking into large build-to-rent developments that could change the way we live in the capital.

Contrary to popular belief that many of London’s developments second-homes for foreign millionaires, only 121,000 homes are recorded to be ‘empty’. However, there has been a significant growth in properties bought as investments, currently 61% of all new homes are bought with the no intention of occupying (Molior London).

80% of households bring in less than £45,000 a year and with house prices rising by 18% last year and living wages only rising by 2.1%, a revised approached to the capital’s housing market needs addressing.

Peter Murray, Chairman of New London Architecture, rallied this call for change by saying: “There is no silver bullet to solve London’s housing crisis – we need to look at lots of smaller and innovative contributions to fill in the gap left by the traditional providers”

Claire Bennie, Architect and Housing Development Specialist, and former Development Director at Peabody, commented: ‘Housing London is the pressing issue of our time: we now need to implement the best solutions from this competition without delay so that our young people can settle and thrive in this great metropolis.’

Greater London is a relatively low-density city and covers 152,200 hectares of land. If all of London’s residents were standing in a grid, they would be spaced 14m apart but if London continues to grow upwards and outwards then there is the potential to create 470,000 new homes over the next 20 years. There is currently an estimated 75,000 hectares of available space in Greater London and with the potential to create to 100,000 homes on sites as small as 0.25 hectares the density of city must improve. The NLA exhibition New Ideas for Housing will explore some of the most innovative solutions to the housing crisis and what is next for London.

Only 2% of Britons Know How Rich They Really Are

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moneyWe are not sure if you saw Channel 4’s How Rich Are You Show last night but it was interesting. Take the quiz and find out how rich or poor you are below. The poll is also an eye-opener.

In a new poll commissioned by Channel 4, people in the UK were asked to guess how their income compared with the rest of the country’s, and then answer a series of questions to calculate the true result. Only 2% of the people surveyed guessed correctly.

The poll was commissioned to accompany How Rich Are You (1 x60) which airs at 8pm on the 10th November. Presented by Richard Bacon, this one-off special will show each of us where we stand in the great money map of Britain – and what that position means. With the help of leading experts, a studio audience and individual case studies, the show builds up a shocking and surprising portrait of the country that is now – officially – the most unequal in Europe.

Alongside the programme, the channel has launched a website app which will enable every viewer to take the ‘How Rich Are You’ test at home. Visitors to channel4.com/howrichareyou can answer a set of simple questions to determine if they are as rich or as poor as they think they are. The data for the app has been provided by the Institute for Fiscal Studies.

As many as 67% of the people surveyed underestimated their income compared by more than 10%, indicating a serious lack of understanding as to the economic state of the nation. Only 7% of people overestimated their income compared to the UK – but nobody overestimated by more than 10%. Just 2% correctly estimated their level of income vs the UK population.

The survey reveals that despite the struggles of the current economic climate, 75% of adults say that they manage financially, with 16% stating they struggle to get by.

Despite this there is still a bleak picture of life in 2014, as 61% feel that life in Britain has worsened over the last 20 years. Just 13% feel that life has improved.

The survey shed light on our embarrassment at talking about money. It revealed that 31% of adults surveyed would not be happy to discuss how much money they earn with family and friends, while 19% are not sure how they feel about it.

Interestingly, it is younger people who are more willing to discuss finances, with 60% of those aged 16-24 happy to talk about how much money they make.

When asked about inequality across the UK, the majority of adults (84%) think that the wealthy should pay higher taxes.

Those that feel they have enough money in their household (rating themselves as ‘well off’) feel less strongly on this matter, but still display strong agreement at 73%.

The survey also asked people about average salaries of other professions including a nurse, MP, care worker and average CEO. The results were fascinating with 70% of people overestimating the salaries of a CEO and more than half overestimating the salaries of an MP.

  • An average Nurse in the UK earns just over £26,000. Half of the adults that we spoke to correctly chose this amount, a quarter over estimated how much they earn, while a further quarter under-estimated their wage. Interestingly, those who were struggling in their household underestimated a nurse’s wage the most, while those that were well off overestimated their wage the most.
  • Just 27% of adults correctly knew an MPs current wage of £66,400, while a further 31% thought that MPs were on their soon to be higher wage of £72,000. A further 26% thought that they were paid nearly £20,000 more than their current wage.
  • An average care worker in the UK earns just under £13,000, 42% of adults correctly chose their wage. 50% thought that their earnings were at least 30% higher.
  • An average CEO in the UK earns an annual income of just under £118,000. Just 13% of the adults we spoke to correctly picked this amount, the majority (70%) thought their wage was significantly higher.

Dr Fazia Shaheen, Economist and expert on How Rich Are You? commented: “These numbers serve as a reminder of how little we understand about each other’s lives. We are failing to see the bigger picture – too busy trying to get by on our own wages to notice the growing gap between the very rich and the rest of us.”

John Hay, Commissioning Editor for Channel 4 commented: ““I’m convinced that years from now we will look back on the growing gap between rich and poor as the most significant issue of our age, and I think there’s a real hunger to understand it better (as well as to find out how much our neighbours earn). Richard and the team at Electric Ray have a gift for making important television that doesn’t feel like homework, so I hope this will be both revelatory and addictive viewing.”

Take the quiz here.

 

Groundbreaking Festival For Girls To Be Headlined By Jessie J

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Girls are the most powerful force for change on the planet

girleffect festival London will host Girl Effect Live, an event bringing together some of the UK’s best and brightest talent, to celebrate the potential of girls, to stop poverty before it starts

 

Jessie J will headline Girl Effect Live, an all-day festival taking place in London on Sunday 20th July, which promises a day of celebration, creation and conversation about the power of girls to break the cycle of global poverty.  It will bring together some of the UK’s best and brightest talent to spotlight girls as the most powerful force for change on the planet.

 

Girl Effect Live will take place in venues in and around London’s Brick Lane two days before the world’s first ever Girl Summit, hosted by the UK government and UNICEF.  It will comprise a series of exciting and inspiring happenings during the day, and a gig in the evening to celebrate, incite and educate young people in the UK about the aspirations and opportunities of girls living in poverty.

 

The daytime schedule at the Vibe Bar kicks off at 13:00 and will feature a range of creative activities including spoken word performances from exciting talent including Dizraeli and James Massiah; comedy from female comedians: Mae Martin and Ava Vidal; SLAMbassadors UK workshops hosted by the champions of UK youth slam Megan Beech, Ollie O’Neil and Tiana Oldroyd; a live graffiti wall and exclusive Girl Effect nail art by Wah Nails – the acclaimed London-based nail salon.  Visitors will also be able to purchase a limited edition ‘Girl Effect’ necklace by Tatty Devine.

 

Truman Brewery’s Dray Walk gallery will also play exclusive host to the ‘Girls Reframed’ exhibition: featuring exclusive pieces from renowned artists such as Jimmy C, Hattie Stewart, Magnus Voll Mathiassen, and Michela Picchi.

 

At Loading Bay there will be a girls-only immersive experience that brings to life the realities faced by girls living in poverty with artistic consultancy provided by Punchdrunk Enrichment.

 

As night falls the day’s festivities will culminate in what promises to be electrifying performances from Jessie J, supported by Sasha Keable plus special guests at Village Underground, celebrating the potential of girls around the world and the achievements of the day.

 

Jessie J comments:  “Living in the UK, we’re fortunate that we have the opportunity to strive for and fulfil our full potential, but this isn’t the case for many girls living in poverty. I am involved in Girl Effect Live, because I want to take a stand with other girls in the UK to inspire, recognise and celebrate the amazing potential of girls everywhere.”

 

Girls will be invited to lend their voices in support of girls in poverty, by going to a video booth or speaking to the roving camera crew. Their voices will be edited into a film that will be taken to the Girl Summit where they will contribute to the efforts to end FGM and early, forced and child marriage within a generation.

 

The Girl Effect Live: Day event is completely free but capacity is limited at some events, so pre-booking is recommended. Tickets to the Girl Effect Live: Night event are priced at £10 and will be issued via an online ballot. Lucky ticketholders will also receive a limited edition ‘Girl Effect’ necklace from Tatty Devine.

 

For more information on how to register for the day event and the ballot for the evening music performance visit:www.girleffectlive.com.

 

To share your voice and help make a noise on social media about the event, the UK public are also invited to join in conversations on social media using #GirlEffectLive and via Girl Effect on Twitter, Instagram and Facebook.  There will also be coverage of Girl Effect Live throughout the day on SBTV.

 

 

One In Three In The UK Can’t Afford To Eat Healthily

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appleMore than a third (39 per cent) of people in the UK – around 25 million – say they do not eat healthily because it is too expensive to do so.   One in seven people (14 per cent) said they do not have time to prepare healthy food, and one in ten (10 per cent) said they do not know how to eat healthily.

 

These are the findings of new research out today from UK health charity Nuffield Health, who questioned more than 3,100 UK adults.  The figures provide a snapshot of the UK’s views on obesity and healthy lifestyle choices.  Experts say the findings are concerning, and show poor understanding about healthy living and an acceptance that obesity has become the norm in society.

 

The research, carried out to support National Obesity Awareness Week, highlights the urgency for effective obesity prevention strategies.  Of those polled, a third of people said they had noticed a rise in obesity in the area they live.  40 per cent of people said that seeing obese adults in the area they live in is common, with almost the same number – 38 per cent – saying that childhood obesity is now the norm.

 

The figures back up research released this week by the National Obesity Forum which shows that current strategies are failing to halt the rise in obesity, and a 2007 prediction that more than half of people in the UK will be obese by 2050 will in fact be exceeded.

 

Of the respondents, a further 550 people who were measured as obese – with a Body Mass Index of more than 30* – were questioned about their views on weight management.

Of this group:

  • Nearly half (48 per cent) are resigned to remaining obese due to a lack of willpower
  • 17 per cent said they had never attempted to lose weight
  • One in five (20 per cent) would rather be overweight than watch what they eat.

 

When questioned about attitudes towards exercise, the figures showed:

  • 40 per cent said they find exercise boring
  • A quarter (25 per cent) do not have time to exercise
  • One in seven (14 per cent) would rather be overweight than have to exercise.

 

When questioned about the Government’s response to tackling the problem, almost half (45 per cent) said that GP referrals for exercise should be considered. 40 per cent would like to see increased funding for recognised weight management programmes, 43 per cent want stricter regulations on ‘unhealthy’ food and drink chains from sponsoring high profile events and 40 per cent said that school meals should be regulated as a matter of urgency.

 

While the majority of respondents (81 per cent) said obesity is the fault of the individual, when questioned about contributing factors to the UK’s obesity epidemic, more than half (55 per cent) said the blame lies with the food industry.

 

Jackie Donkin, Nutritional Therapist at Nuffield Health, said; ”People who are trapped in the rut that is obesity need to take a step back and really think about the food they are eating.   As a nation, if we continue in this way we are heading for not only an obese population of children and adults, but a chronically ill population.  The key to success is not just dieting, it is long-term lifestyle changes that people need to adopt and which will only work if taken in small steps over a long period of time.

 

Eating more fruit and vegetables, cutting down on takeaways, or eating food in its natural state, rather than covered in rich sauces, will drastically reduce the amount of fat and sugar we eat.  Increasing day-to-day activity; walking up the stairs instead of taking the lift; walking those short distances instead of taking the car; going for a walk around the block in the evening, will all contribute to a healthier lifestyle, which once adopted will become much easier to maintain over time.”

 

Katy Perry teams up with UNICEF and visits children in Madagascar

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Beautiful and talented singer/songwriter Katy Perry has visited Madagascar to bring attention to the situation of children in the tropical island country, one of the poorest in the world and still recovering from a political crisis that began in 2009.

 

“In less than one week here in Madagascar, I went from crowded city slums to the most remote villages and my eyes were widely opened by the incredible need for a healthy life – nutrition, sanitation, and protection against rape and abuse – which UNICEF are stepping in to help provide,” Perry said.

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“I am grateful to UNICEF for giving me the opportunity to see first-hand how their programmes make a real difference in children’s lives. Support for UNICEF is saving children, I am a witness to it.”

On her first visit in support of UNICEF, Perry saw a full range of programmes, from education, nutrition, health and child protection to water, sanitation and hygiene.

Beginning her trip in a slum area of the capital Antananarivo, she visited a child protection centre and met abused and abandoned children and young mothers receiving support and counseling. More than three out of four children in Madagascar live in extreme poverty, making them vulnerable to exploitation.

Most international donors have frozen development aid following the 2009 crisis, forcing the government to make drastic cuts in public spending and resulting in large parts of the population not having access to basic health care and primary education. Perry visited a UNICEF supported pre-school and a primary school built to enable children to go back to school.

At the Sahavola pre-school, 117 boys and girls between the ages of 3 and 6 receive a quality early education and learn the importance of thinking creatively and working collaboratively. They are also encouraged to participate in health and hygiene practices at an early age. To promote proper hygiene and sanitation, UNICEF constructed latrines and sinks at the pre-school, where Perry took in hand washing with the children.

The old village primary school, made from sticks and with a thatched roof, was destroyed by one of the tropical cyclones that hit the island every year. It was replaced by UNICEF with a solid, cyclone-resistant building.

 

 

Schooling rates in Madagascar are alarmingly low. Only three children out of every 10 who start primary school complete the cycle. Two-thirds of teachers have not received any formal training.

 

UNICEF and national school authorities are working to improve the situation through school construction and providing learning materials, training for teachers and supporting community action plans for education.

“An education is an incredible opportunity here. I visited a very remote community, where children and teachers walk for 45 minutes just to get to school. This is a testament to how appreciative they are about their education,” said Perry in the UNICEF- supported primary school in the village of Ampihaonana.

In the nutrition centre in Androranga village, Perry learned about UNICEF’s efforts to tackle another serious problem of the country – chronic malnutrition. Half the children in Madagascar are chronically malnourished, putting the country among the six worst in the world for chronic malnutrition.

 

Poor maternal nutrition, poor feeding practices and poor food quality contribute to the failure of these children to reach their full potential mentally and physically. The centre, run by a community health worker, identifies cases and works with village mothers to improve children’s nutrition, including focusing on the importance of exclusive breastfeeding during the first six months of a child’s life.

So, How Do Charities Spend Your Money?

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Oxfam launches nationwide search to find a member of the public to see for themselves how money donated to the charity is spent

Oxfam is today launching a nationwide search to find a member of the public to travel to one of their projects and see for themselves how money donated to the charity is spent. The successful applicant of this unique opportunity will report back with their personal experience of Oxfam’s work helping communities out of poverty and will feature in a major advertising campaign.

Oxfam’s research highlights that uncertainty about whether donated money gets to where it’s needed or if it even makes a difference long term can be a major barrier to giving. The ‘See For Yourself’ campaign aims to dispel these myths and show how giving just £3 a month to Oxfam really can transform people’s lives. The core of the initiative is being open and honest about how donated money is spent by showing Oxfam’s work from an impartial point of view.

Earlier this year mum-of-two and Oxfam supporter, Jodie Sandford, became the first person ever to take part in ‘See For Yourself’ when she travelled to Zimbabwe to see Oxfam’s work first-hand. Now, in an unprecedented step, the charity is widening the recruitment for the next phase and is specifically looking for someone who is not an Oxfam supporter to travel with them to Malawi, southeast Africa.

Oxfam are looking for someone who is curious and not afraid to ask questions. They will need to be willing to embrace new experiences as the trip itself will be physically and emotionally challenging. The journey will take them to an Oxfam project, where they will meet the local people and share their personal account of their thoughts and feelings about directly witnessing Oxfam’s work.

The whole experience will be filmed as part of a TV, print and online campaign which will launch this autumn to encourage more people to donate to Oxfam on a regular basis.

Oxfam’s Paul Vanags, Head of Public Fundraising added: “Regular donations make Oxfam’s life-changing, life-saving projects possible but we urgently need to do more. We believe that the most powerful way to encourage more people to give is to show them our work through the eyes of someone impartial who’s never seen it before. This trip will not only offer an experience of a lifetime, it will also form the basis of a major initiative to help us find new regular supporters.”

Prospective candidates will need to hold a valid UK passport and be available to travel for up to two weeks in July or August 2012. Recruitment is open from 6-14 June 2012 and Oxfam will be interviewing short-listed applicants on 21-22 June 2012.

To apply go to www.oxfam.org.uk/apply