Vat

[Banker]

1 hour ago, Phillip Dearden said:

Is there much in it now?

Whilst many reserves have positive balances the Net Total of all Reserves, Funds, Revenue Account etc (ie the bottom half of the Balance sheet) is minus £566m - see audited accounts 31/3/2021.

This includes the NI fund.

 

That’s because of the pension liability of £4.7bn which is just an actuarial calculation & not payable in a lump sum.

However the cost of servicing the legacy pensions are increasing as contributions don’t cover payments, think c£35m pa & increasing!

[Phillip Dearden]

1 minute ago, Banker said:

That’s because of the pension liability of £4.7bn which is just an actuarial calculation & not payable in a lump sum.

However the cost of servicing the legacy pensions are increasing as contributions don’t cover payments, think c£35m pa & increasing!

The pension liability is a factor but that's because the pensions will have to be paid.

"not payable in a lump sum", how is that relevant?

 

[Banker]

Just now, Phillip Dearden said:

The pension liability is a factor but that's because the pensions will have to be paid.

"not payable in a lump sum", how is that relevant?

 

It’s showing as a liability but that’s the amount payable now as a lump sum to cover cost of providing the pensions if IOMG shut down & stopped paying so never going to happen.

[cissolt]

1 hour ago, SleepyJoe said:

Any idea where the £26m loan to the MUA is to come from?

The bottomless reserves.

 

[Phillip Dearden]

15 minutes ago, Banker said:

It’s showing as a liability but that’s the amount payable now as a lump sum to cover cost of providing the pensions if IOMG shut down & stopped paying so never going to happen.

No, its nothing to do with being shut down.

It is the Actuarial estimate of our current value of the Govts. obligation to pay pensions. If the govt. were a company, this is the amount that would be required to be in a fund to cover the pensions. The Debit (cost) to the Revenue Account is the recognition of the obligation to pay deferred remuneration to employees, to omit this would be to ignore a substantial cost of Government operations.

"lump sum"? Also not relevant.

[WTF]

1 hour ago, Phillip Dearden said:

No, its nothing to do with being shut down.

It is the Actuarial estimate of our current value of the Govts. obligation to pay pensions. If the govt. were a company, this is the amount that would be required to be in a fund to cover the pensions. The Debit (cost) to the Revenue Account is the recognition of the obligation to pay deferred remuneration to employees, to omit this would be to ignore a substantial cost of Government operations.

"lump sum"? Also not relevant.

it's a shame there isn't actually a fund cos with interest rates going up it could be earning real money

[The Old Git]

7 hours ago, Asthehills said:

Last time they messed about with VAT rates it cost some businesses more in faffing about with systems and accounting than it ever generated in savings or additional profits, and most didn’t ever pass the saving onto the customer.

Waste of time

A change in vat rate was a right pain in the backside. Think it happened twice when I was involved, glad I’m out of it. 

[Banker]

17 minutes ago, WTF said:

it's a shame there isn't actually a fund cos with interest rates going up it could be earning real money

It’s a Ponzi scheme same as Uk with pensions increased in line with inflation which will add to annual costs to taxpayers 

[BriT]

1 hour ago, Phillip Dearden said:

No, its nothing to do with being shut down.

It is the Actuarial estimate of our current value of the Govts. obligation to pay pensions. If the govt. were a company, this is the amount that would be required to be in a fund to cover the pensions. The Debit (cost) to the Revenue Account is the recognition of the obligation to pay deferred remuneration to employees, to omit this would be to ignore a substantial cost of Government operations.

"lump sum"? Also not relevant.

Isn’t the annual cost around £70M now anyway just to pay what’s owed now to those who have already retired?

[GD4ELI]

47 minutes ago, Banker said:

It’s a Ponzi scheme same as Uk with pensions increased in line with inflation which will add to annual costs to taxpayers 

Do you actually know what a Ponzi scheme is?

Edited September 2, 2022 by GD4ELI

[offshoremanxman]

2 minutes ago, GD4ELI said:

Do you actually know what a Ponzi scheme is?

The IOM government pension scheme is a classic Ponzi scheme in that it relies on new members being inducted into it in order to pay out members who want their money out (in fact it doesn’t even do that as new members don’t even cover outgoing) and without new members being brought into it would at some point fail. 

[Asthehills]

1 hour ago, The Old Git said:

A change in vat rate was a right pain in the backside. Think it happened twice when I was involved, glad I’m out of it. 

It cost me about 4K in accountants fees plus extra to have systems reconfigured as I recall.

Then there were the goons who couldn’t understand that reducing VAT from for example 20 percent to 15 percent actually reduces the price of an item by 4.16%

[The Old Git]

1 hour ago, Asthehills said:

It cost me about 4K in accountants fees plus extra to have systems reconfigured as I recall.

Then there were the goons who couldn’t understand that reducing VAT from for example 20 percent to 15 percent actually reduces the price of an item by 4.16%

We invoice after the work is done and it was mainly dealing with customers wanting the tax point “adjusted” to save them money. Some requests were frankly ridiculous. Actually changing the vat rate on the computer was quite easy for us but I get your point about the reduction not being understood. We also offered a prompt payment discount, which involved the vat being calculated on the discounted amount and we became quite good at quoting the relevant vat section from memory.