So what would you do?As is the ability to devalue currency. I honestly think we should have a petition to get David as chancellor with Tony as his civil servant. Are you better qualified than the chancellor and yes I’m sure Mr trump would believe you which is why I mentioned him.
Yes mate it was much better so fingers crossed things are starting to improve a bit more quickly now but have to be prepared for more increases again in the coming days though I thinkGood news on the total cases today wasn’t it Mate, wasn’t it the lowest it’s been in a month?
No I’m really not again this is economic theory against reality - the depression and the subsequent building works were in a long ago time l - I know of several manufacturing businesses that are going under. I know of one business that’s employed people for over 30 years and had never laid people off in any economic downturn. Now it has had to and money is not coming in from creditors and fine costs have to be paid. It’s abnormally cash rich but will close in ten weeks time if this isn’t resolved due to associate product lags
we now line in a global much more service aligned economy and have debt mountains that you could never have imagined at that time - many European countries now have debt of 140% of its GDP
Perhaps you should write to the leaders and say this is basic economics lads and here’s a Great Plan. If it’s that simple I’d guess they’ve thought of it
You are the guy whose always been pretty kind of flippant about the debt haven’t you? I think? Your in my view in for a shock as this if it carries on will be with generations for a very king time
I am fascinated though if it’s basic textbook economics whose going to do what and how these dead business and all their supplies will just wake up Bobby Ewing style and it’s all a dream
No I’m really not again this is economic theory against reality - the depression and the subsequent building works were in a long ago time l - I know of several manufacturing businesses that are going under. I know of one business that’s employed people for over 30 years and had never laid people off in any economic downturn. Now it has had to and money is not coming in from creditors and fine costs have to be paid. It’s abnormally cash rich but will close in ten weeks time if this isn’t resolved due to associate product lags
we now line in a global much more service aligned economy and have debt mountains that you could never have imagined at that time - many European countries now have debt of 140% of its GDP
Perhaps you should write to the leaders and say this is basic economics lads and here’s a Great Plan. If it’s that simple I’d guess they’ve thought of it
You are the guy whose always been pretty kind of flippant about the debt haven’t you? I think? Your in my view in for a shock as this if it carries on will be with generations for a very king time
I am fascinated though if it’s basic textbook economics whose going to do what and how these dead business and all their supplies will just wake up Bobby Ewing style and it’s all a dream
This company you know- why would they have been expecting money to come in from their creditors?
Oddly because they are not getting any money from theirs snd are likely to default as it’s a cycle of non production so terms have to be extended and of course schedules of production become revised
Well, perhaps a start would be to retain more cash in the businesses rather than massive dividend payouts to the very rich shareholders that do fuck all except own a piece of paper. Thus reducing the need for the higher debt and reducing pressure from interest payments?
The business I am referring to has huge cash reserves compared to most of its size - it pays no dividends as it’s a private limited Company - again reality over theory
You are aware of what a ‘creditor’ is, right? You might want to check your basic definitions.
The business I am referring to has huge cash reserves compared to most of its size - it pays no dividends as it’s a private limited Company - again reality over theory
Whatever I’m mean credit in the balance sheet I forgot you are an accountant.
Private limited companies still can (and often do) pay dividends to it's shareholders. Plus if that one has large cash reserves compared to others doesn't it just highlight the problem.
Just checked and apparently in the Great Depression the UK’s national dept was running at 180%.and have debt mountains that you could never have imagined at that time - many European countries now have debt of 140% of its GDP
Do you mean debtors?Oddly because they are not getting any money from theirs snd are likely to default as it’s a cycle of non production so terms have to be extended and of course schedules of production become revised
Do you mean debtors?
Private limited companies still can (and often do) pay dividends to it's shareholders. Plus if that one has large cash reserves compared to others doesn't it just highlight the problem.
By the looks of it he says the metric used for pop density is number of major dense urban areas. I find this flawed. What if you have a large percentage of your population living quite rurally with one or two absolutely heaving metroplii? Of course there will be no correlation.
For that it needs to be looked at at a smaller scale, such as comparing different major cities to each other and against rural areas.Look at the UK graph. London top. WM second, NW third. Bottom is Devon and Cornwall. Who'd have thunk it.
If pop density has no effect why is social distancing such an important factor? If people live in high rises with shared entrances (which is going to massively affect pop density) it greatly increases the chance of infection.
No no I’m not trying to pick fault, you mean debtors- this is obviously a topic of interest for me. I’m the ‘bean counter’ for a company that manufactures modular housing units for construction at sites in London, I’m kind of living these very issues. I’m no economist so I don’t have the answers but I do know the problems- I would suggest that this is going to have an impact for 5 years minimum. In my own circumstances it’s the supply chain- the subcontractors, the suppliers, they’re getting wiped out and there’s nobody to replace them and it’s like a domino effect.
Do you own a business? It has two shareholders and pays no dividends. Again I try and explain a point from a position of some knowledge and someone makes a counter claim with what knowledge exactly?
Thought so.he does indeed
he used the wrong terminology same as you did, and there are rules but ‘dividends’ still happens whether they’re directors drawings or something similar. Obviously I don’t know the specifics of the company you’re talking about but I wouldn’t write off what he says, he’s right albeit not technically via “dividends”.
I do find it strange as you’ve said you are an accountant why you had such a problematic time regarding the level of debt in the football club by the owners of the club was the £20 million I quoted when the accountant that broke it down into bite size chunks on here always said it was exactly that and you then started quoting Kevin Maguire. Was that a wind up?
Isn’t it NI contribution rather than tax?Dividends tend to be directors salaries in this instance as the tax rate is apparently lower at certain tax bands but clearly they are not normal dividends
Dividends tend to be directors salaries in this instance as the tax rate is apparently lower at certain tax bands but clearly they are not normal dividends
If they’re just taking a salary alone and no dividends/ drawings etc then all the cash is genuinely for propping up the business, and you’ve got to assume they’ve crunched the numbers to know how long they can last. The problem is trying to factor in whether the people that owe you money will go under, if they do then your projections are blown away. Massive uncertainty everywhere, a giant house of cards. Then you’ve got the one man bands with their own companies who might employ 10 guys, the self employed support means they’re absolutely screwed- and their closure means their customers have no supplier, manufacturing schedules blown apart, there’s a risk of people getting done for wrongful trading etc etc, I’m waffling and I have no answers, but this is going to be the biggest mess in my lifetime for sure.
Exactly thanks for a sensible post
why do I get the sense I’ve unwittingly taken sides in an argument
The forecasts are out there right now, even on the BBC- it’s going to be tough going. And I don’t know who said it but I do agree- when you have people taking £60m dividends the day before asking for a multi-billion bailout (EasyJet) then something is badly wrong, but I don’t know unfortunately of any government outside of China who would have the balls and the ability to get involved and clamp down on that. Like I said- I’m no economist but that can’t be right just like it can’t be right that when this recession is in full swing, the same old names will pay their 2% effective tax rate while there are millions on the dole- what do you do though, how do you fix it? If only there was the appetite for a proper shake-up geared towards- for want of a better word- ‘fairness’, and that’s not declaring any political affiliation either.
Do you own a business? It has two shareholders and pays no dividends. Again I try and explain a point from a position of some knowledge and someone makes a counter claim with what knowledge exactly?
The business I am referring to has huge cash reserves compared to most of its size - it pays no dividends as it’s a private limited Company - again reality over theory
I mean viruses don’t travel through walls so not sure the relevance to social distancing. You can be 1m from someone if there’s a brick wall between you.
Agree about the metric used though, would be better comparing sub national regions. He gives some explanation here:
In a nutshell: pure pop density is misleading, this isn’t perfect but best measure we have.
That’s going to play into SF’s hands majorly in the future, especially with all that’s going on.for the politically minded- looks like there is a new government in Ireland- Fine Gael and Fianna Fáil coalition. I wish I could explain what that means exactly but it’s causing quite the stir over here.
I did this for a living for over a decade. We turned a huge amount of sole traders/partnerships into ltd's due to the tax advantages at the time (since closed).
As the owners(shareholders) were usually also the directors (as I assume is the case here) they'd often pay themselves a 'bonus' at the end of the year in the form of a dividend (as they're usually higher rate tax payers so no NI as would be if they put a bonus in their wages). This would be placed into their director's loan account in the accounts which they could then draw from if they wished.
You stated an I quote:
thus suggesting that ltd's aren't able to pay dividends due to their set-up, which is not true. Maybe in this case they didn't take dividends, but that would be through choice, not because they can't.
That’s going to play into SF’s hands majorly in the future, especially with all that’s going on.
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