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About regprentice

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  1. Interestingly the contractors I know tell me their accountants made them write a statement confirming that they had satisfied themselves that their contracts did not put them in IR35. I know one guy with an 'old school's accountant who hasn't asked for this, that accountant told him that contractors time was up and he should look to convert to permanent. On the IR35 classification tests I can pass some of them as a permanent employee. I don't have set hours (I need to be in in daytime but can roll in at 10am and leave at 4 is without requiring permission), I can choose my place of work through remote working, and I use my own equipment (pc, phone etc) when working from home..
  2. The companies I'm familiar are banks and other financial institutions. All the contracting work is done In house and there is no end client. I worked on a large programme last year with more than 700 contractors.
  3. Cant disagree and its much wider than just, Tax rates NI rates or dayrates. When i mentioned to my colleague i was looking to buy a new macbook pro he offered to put it through his company as it would have saved me something in the region of £600 in VAT and 40% income tax. I declined as it'd be fraud, but the difference is absolutely insane. Car parking, bus tickets, lunch, coffee during a meeting all cost an PAYE employee more than a contractor who can expense these things. My colleagues are 75% contractor. I've been speaking to them about the potential changes in rights for 'self employed' people, holidays sick pay etc are all rights that, because of people like DPD, Uber, Sports Direct etc that contractors seem likely to find themselves legislated to have over the next couple of years. This will bring their terms and conditions much closer to those of a 'permanent employee'. The argument in the past has been that contractors are paid more because they don't have these rights, but it seems part of that argument is going to vanish. I would have thought that this will bring permanent and contractor rights closer together and reduce contractor rates (as its hardly likely to increase PAYE rates) My contracting colleagues tell me that if they are forced to accept these rights day rates will have to increase, they tell me that if they are forced into IR35 then day rates will have to increase but I can only see reasons for those rates to decrease as contractors and permanent staff become more and more similar. Will be interesting to see what happens. Edit - another thought - This isn't a change to the IR35 rules, but moving responsibility for asserting those rules to the employer. If you've had a long working relationship with an employer who now decides you are within IR35 then i would assume that puts all historic work you've done with that employer within IR35 as well.
  4. regprentice

    What/who will collapse first in 2018

    Discussion on Radio Scotland at lunchtime today, Johnstone Press, publisher of the i newspaper, the scotsman/herald and around 200 small local papers is up for sale. I wonder who wants to buy £220Mn of Debt for £3Mn ? https://www.bbc.com/news/business-45820672 https://www.holdthefrontpage.co.uk/2018/news/journalists-fear-uncertain-times-after-johnston-press-put-up-for-sale/ Daily Telegraph deputy business editor Chris Williams added: “Johnston Press has put itself up for sale. Has a market value of only £3m. “If rumours of £3m for the whole group of +200 titles is true, that works out as less than £15k a title. For that price I’ll get myself a newspaper and have a bit of fun.”
  5. https://www.oxfordmail.co.uk/news/15455182.Care_homes_in_Oxfordshire__most_expensive__in_UK/ Residential home in a small commuter town in Oxfordshire, walking distance from where his daughter lives. She has just retired herself and reckons she couldn't manage a long commute on a regular basis. According to this article the fees in this area range from a minimum of £750 to £1500 a week. In the most expensive home that would take my wife's grandads fees to £280k for 3 1/2 years, i'm not sure where the rest of the money goes, whether there are top up fees or whether they have to pay for food etc? My mother in law who holds power of attorney made the observation that 400K would last 3 and a half years, i haven't discussed how that breaks down in detail.
  6. The Nat West BTL Mortgage has the following lending criteria - http://www.intermediary.natwest.com/intermediary-solutions/lending-criteria.html then follow the link for BTL. The terms include the following. We will not consider multiple tenancies, Homes of Multiple Occupancy, bedsits, DSS tenants or 'Related Person' tenancies. A minimum income of £25k pa is required (for joint applications at least one applicant must earn £25k). Maximum LTV is 75% (for new build flats or houses a maximum LTV of 65% applies). Interest Coverage Ratio (ICR): The ratio of the expected monthly rental income from the Buy to Let property to the monthly mortgage interest payment which takes into account likely future interest rate increases. The minimum ICR threshold is 135%. We will top-slice if there is a rental shortfall, taking into account any free personal income the applicant may have. In all cases, expected rent must continue to meet a minimum rental cover calculation of 5.5% x 125%. The ICR is very important, i sincerely hope that the bank continues to be as aggressive in enforcing their terms as house prices continue to fall...it'll be a bloodbath for small landlords if/when there is a crash. no idea what 'top-slice' means... but it doesn't sound good. Anecdotal - i used to work for RBS (Who own Natwest). about a year after the GFC i was speaking to a senior manager in Finance and he told me that it was unbelievable how many companies RBS had taken ownership of. If a company breached its covenants RBS would call in their loan and take ownership of the company, they would leave the managment/owners in their job but now RBS owned everything. He reckoned there were 100's if not 1000's of companies that RBS had done this to. It's probably a large part of the GRG scandal thats been in the press recently, though nothing i've read has sounded quite the same as the structure that this manager discussed with me, which made it soud like RBS was sitting on a load of 'zombie' companies it would eventually sell for a profit, as opposed to aggressively close down.. According to their induction course for new staff, just before the GFC RBS was the largest single owner of hotels and bars in the UK. If they wholesale foreclose on their BTL book they might end up the largest single owner of residential property in the UK.
  7. regprentice

    Sears going bankrupt this week?

    Seems like a rerun of Hof/Debs , they even have their own Mike Ashley figure. https://www.forbes.com/sites/paularosenblum/2018/10/10/sears-plunges-towards-chapter-11-lampert-stands-to-win-whatever-happens/#67714f0d5237
  8. His daughter deliberately chose a home where the state funding would kick in when his money ran out without him having to move again. So that should be the 'base' NHS rate. Some homes cost more than twice that, but he would have had to leave and find an NHS place when his cash ran out
  9. My wife's grandfather lived on his own til he was 93, between 93 and 95 he required 2 hours a day of help in his own home after a bad fall which left him outside overnight from which he never quite recovered. Now at 95 he has just moved into a home. His house was sold for £400k and it will pay his care fees for three and a half years. Nothing wrong with him apart from age related diabetes. Would never have predicted he'd live this long. Quite likely to burn through the full £400K I would have thought, it's amazing that 'wealth' that took a whole lifetime to accumulate can be eroded to nothing in three years by care fees. The impact on his boomer children has been pretty significant. Despite living in their own £400k house and having 2 final salary teachers pensions they've already said there will be nothing left for their kids and are spending the money like water as they'd rather spend it than 'lose it' to the govt in care home fees. I've read a lot about the 'inter generational' contract recently and I think fear of care home fees has gone a long way to eroding the expectation of intergenerational wealth transfer through inheritance.
  10. Christ on a bike. And she was in tears of joy when she renegotiated her loan to only 13%.
  11. Debenhams preliminary results are due on the 25th of October. It'll be a white knuckle ride for the share price til then, and if the figures don't show significant improvement I don't think they will make it to Christmas Some chat on LSE share site about the state of DEBs finances...at the end of last year Debenhams had £918mn of net assets of which £820mn was Goodwill. The £98mn difference between those two numbers is probably the real value of Debenhams and is very similar to the £90Mn Mike Ashley eventually paid for HOF. http://www.lse.co.uk/ShareChat.asp?ShareTicker=DEB&page=2
  12. John Lewis turn this morning - headline in the FT ' John Lewis profits collapse 99% in first half'. Had a quick google to find the text of the FT article and the results that came up for 'john Lewis profits collapse' are pretty telling for the last four quarters. 8th march 2018 , FT, "profits at Waitrose and Johnson Lewis collapse' 77%" 11th Jan 2018 , retail gazette, "John Lewis Partnership warns on profit margin despite sales rise over Christmas" 14th Sept 2017, itv, "John Lewis profits collapse by more than 50%" I'm sure there are lots of 'one offs' and 'challenging conditions' but it looks like the jewel of high street retail is dropping like a stone.
  13. Interestingly there was a programme on radio 4 yesterday talking about this. (The new age of capitalism). It argues it's not data per se that is valuable but engaging people and getting their attention. (Time spent on Facebook etc) and that it is people's time that is the scarce commodity. An interesting point made was that Google Facebook and the rest measure success in clicks, adverts viewed etc, but that's not how people value their time. - no one ever sat down and said I'm going to click through 100 hyperlinks this evening. Sites and companies that can more closely align their measure of success with what people actually want to do will eventually win this economic cycle. They also said that skimming through sites like Facebook, Pinterest etc and finding the occasional image or story that interests you is the same psychological process your brain goes through when gambling, it wants to be 'surprised' and will happily wade through tons of crap for the emotional experience of finding that one 'gem' - this apparently increases your dopamine levels....
  14. Desperation on Debenhams part - I got an email this morning offering £25 on a £100 spend - On most items. I haven't seen anything like that before from them. Offer applies to full price and sales lines. Selected concessions/brands are excluded. Offer is valid from Monday 3 September - Sunday 16 September (inclusive) only. Spends of £100 or more in one transaction on included lines will receive £25 off. Offer excludes beauty, fragrance, Gift, Kidswear, furniture and selected concessions. Trying to jack up turnover before the next quarterly figures?
  15. regprentice

    1/3 have no Pension Savings

    I originally posted this in the Monster Mortgage Madness thread. "I stood in a boarding queue for a flight recently behind someone talking to a colleague... His firm was taking on newly qualified CIMA accountants and paying £20k a year. Apparently they want new starts so they don't have to 'unlearn' other firms processes, and he claimed they have their pick of CIMA graduates" I'm ACCA not CIMA but I had to study for 4 years AFTER completing a degree to get my ACCA Membership.... No way I'd be doing that for 20K.

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