Economics Finance

The VAT rate in the UK has been reduced, temporarily, in an attempt by the UK government to stimulate the economy and get people spending. Whether or not this will work remains to be seen. However, implementing the change can be tricky – invoices have to be amended, spreadsheets and databases need to be changed, and things can get complicated!

Some people prefer to use the ‘fraction’ to work out VAT. When the VAT rate was 17.5% the fraction was 7/47. Now, the fraction needed is 3/23. This means that the total (VAT inclusive) price is 23 23rds, the VAT amount is 3 23rds, and the NETT price is 20 23rds.

* To add VAT at 15% on to a sale- multiply by 1.15 – Example £50.00 + VAT = £57.50. Alternative, divide by 20 and multiply by 23.
* To calculate how much the VAT will be on a sale, multiply by 0.15 – Example VAT on £50.00 = £7.50. Alternative, divide by 20, multiply by 3.
* To work out the NETT price (price excluding VAT) DIVIDE by 1.15 – Example £57.50 less VAT = £50.00.Or, use the fraction – divide by 23 then multiply by 20
* To work out the amount of VAT on a VAT inclusive price, it is much easier to use the fraction – divide by 23 then multiply by 3. Otherwise, divide by 7.667 to get the VAT amount. Continue reading ‘How to Calculate and Deduct the New VAT Rates’ »

The Bankruptcy Code gives homeowners facing foreclosure the right to cure the default any time up until the foreclosure sale process is completed. The key word here is “process,” and state law determines what the process is for a valid auction or sheriff sale. Until this has been completed, homeowners who file bankruptcy can use the federal laws for another chance to save their home and cure the default.

The Bankruptcy Code itself does not even determine when a house is considered “sold” for the purposes of a valid foreclosure sale. This means that state foreclosure laws will most likely be used in cases where borrowers attempt to pay off a loan through bankruptcy, even after a sheriff sale. Another aspect that works in favor of homeowners is that many states require an auction to be confirmed before it is valid.

This means that homeowners who file bankruptcy have rights during the foreclosure process that are safeguarded at least through the sale of the property. These rights may be guaranteed for even longer than that, depending on how the confirmation process of the auction works after the home has been sold by the courts. If there had been a bankruptcy, the lender may not just be able to sell the house and take it over right away.

Redemption rights may extend the rights of the borrowers even longer. In states that have a redemption period, the borrowers are given a set period of time in which to cure the default even after the home has been auctioned at a trustee sale. But for those homeowners in states where a redemption period is not available, filing for bankruptcy may create a pseudo-redemption period through the right to cure.

However, rulings by state courts on this issue may determine how long this extra right to cure lasts. Some courts have ruled that the foreclosure sale process is completed once the gavel falls at the auction. In these cases, filing bankruptcy will not extend the time to cure the default for any significant period of time. Once the auction has been conducted, the sale process is complete, and the right to cure has expired Continue reading ‘Using Bankruptcy to Cure a Mortgage Default’ »

While bankruptcy is very much a viable and legitimate means of resolving desperate financial situations, people have some very grave and real concerns about a number of potential consequences. A commonly asked question by those considering bankruptcy as a route to solving their problems is, “Will bankruptcy affect my job?” And if so, “HOW will bankruptcy affect my job?”

Well, technically, federal law prohibits any discrimination on the part of your lawyer against you because you have declared or are planning to declare bankruptcy. So, you should not feel concerned about the potential problems with an existing employer. There should be no ill will, negative responses, being overlooked for promotions and certainly not fired over your personal financial situation in regard to bankruptcy. If you receive this type of treatment, your employer is in breach of the law and you could take legal action against him or her. Continue reading ‘Will Bankruptcy Affect My Job? Get the Answers Here’ »