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Andy Onchan

Is Jersey in trouble and could IOM be next to raise tax?

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5 minutes ago, Andy Onchan said:

Been running a few years this one as Jersey did not have a VAT deal with the UK and suffered when all that disclosure and exchange of information had to be complied with. The IOM has the VAT buffer...such as it is...

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Bet we wish we "only" had a black hole that size....

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Posted (edited)

Seems that those students from a household earning a combined salary of £110,000 are deemed worthy of full university tuition fees, those with up to £200,000 part fees! The average wage must be even higher than our fictitiously inflated figure!

https://www.averagesalarysurvey.com/jersey

https://www.gov.je/Government/JerseyInFigures/EmploymentEarnings/Pages/EarningsIncomeStatistics.aspx

ETA links

Edited by Max Power

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3 hours ago, Non-Believer said:

Bet we wish we "only" had a black hole that size....

It's a spookily similar amount to ours.

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28 minutes ago, woolley said:

It's a spookily similar amount to ours.

Ah, but we trump them with a £3Bn pension gap and a £400m power station bill. Though the leccy debt will reduce after the first cold winter of gas and oil CH boilers being banned in new builds.

Of course.

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7 hours ago, Max Power said:

Seems that those students from a household earning a combined salary of £110,000 are deemed worthy of full university tuition fees, those with up to £200,000 part fees! The average wage must be even higher than our fictitiously inflated figure!

https://www.averagesalarysurvey.com/jersey

https://www.gov.je/Government/JerseyInFigures/EmploymentEarnings/Pages/EarningsIncomeStatistics.aspx

ETA links

A constable with ten years service earns more than I did as an inspector 

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15 minutes ago, Derek Flint said:

A constable with ten years service earns more than I did as an inspector 

That’s understandable. ;)

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11 hours ago, Andy Onchan said:

We’ve had similar short falls (£50m plus) that we’ve funded from reserves for years. Their issue seems to be about GST their version of VAT. We don't need to worry about that as we have a rock solid VAT share agreement with a country that’s exiting the EU and the UK- EU customs union. What could be more rock solid than that as a foundation for future prosperity? 

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2 minutes ago, MrPB said:

We’ve had similar short falls (£50m plus) that we’ve funded from reserves for years. Their issue seems to be about GST their version of VAT. We don't need to worry about that as we have a rock solid VAT share agreement with a country that’s exiting the EU and the UK- EU customs union. What could be more rock solid than that as a foundation for future prosperity? 

VAT take is rising year on year. People aren't about to stop spending money and it isn't like you can avoid VAT. Well, not if you're Joe Public.

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1 minute ago, woolley said:

VAT take is rising year on year. People aren't about to stop spending money and it isn't like you can avoid VAT. Well, not if you're Joe Public.

VAT take is currently rising year on year. But then many trading structures are only here because of access to the UK-EU customs union.via an IOM VAT registered company and if that changes then we may well find that those structures and the VAT they book in the IOM will go elsewhere. 

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51 minutes ago, MrPB said:

VAT take is currently rising year on year. But then many trading structures are only here because of access to the UK-EU customs union.via an IOM VAT registered company and if that changes then we may well find that those structures and the VAT they book in the IOM will go elsewhere. 

VAT doesn't work like that. It's a consumption tax which is subject to a sharing mechanism. Previous methods of calculating the Island's share depended on the size of our economy, hence some of our headier "enterprise" initiatives, but no longer. The new arrangements measure the amount of VAT actually raised on consumption by the population and businesses here in the real economy.

The largest VAT payer was Procter and Gamble who worked out of a small office in Castletown. They were booking their entire VAT revenue through the Island and paying hundreds of millions over to the Manx government. Obviously, none of that was due to the Island and it was processed into the shared fund. P & G rearranged their affairs in 2014. They left the Island and the payments ceased. The money didn't benefit us while they were here, therefore it didn't hurt us when they left.

https://www.three.fm/news/isle-of-man-news/procter-and-gamble-relocating-island-operation/

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3 minutes ago, woolley said:

VAT doesn't work like that. It's a consumption tax which is subject to a sharing mechanism. Previous methods of calculating the Island's share depended on the size of our economy, hence some of our headier "enterprise" initiatives, but no longer. The new arrangements measure the amount of VAT actually raised on consumption by the population and businesses here in the real economy.

I do understand how VAT works and you’ve underlined my point. The new formula is based on actual consumption here which still consists of planes, yachts and other VAT rated items as well as trading companies which will just go the second they can’t access the EU customs union so our VAT share could drop dramatically. 

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So it's in our interest to have a closer relationship with the EU?

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19 minutes ago, Donald Trumps said:

So it's in our interest to have a closer relationship with the EU?

Do we think that will be a factor in UK Govt (of whatever shade)'s thinking in months to come?

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