FINANCE TALK - Part 5.

Now before I move onto my thoughts on preparing for the likely event of a financial collapse,

I would like to talk briefly about "crypto" and tax.

Let’s start with 'Crypto'.

I first heard about crypto a few years ago during an interview with a film star, who was asked how he had made so much money. I then read an article in a newspaper that talked about crypto.

I decided to do a bit of investigating to see what it was about. It didn’t sit well with me so I left it alone. Then in 2020/21 people kept going on about crypto so I did some more investigating. I decided to dig deeper than I did before and look at how it actually worked.

I thought by doing this I might feel more comfortable about it. My gut still told me it wasn’t for me, so I left it alone again.

Q: So why are my guts so anti crypto. A: Well..... Crypto is web based. It operates within the current financial system, even if it is different to the monetary system. It is a form of digital currency, just not the one the government wants to bring in. The government knows it exists. Crypto does not fit the government’s future plans. Crypto is web based. This means it is hackable. Even the secure wallets, that are not supposed to be hackable, are hackable – FBI, MI5 and other government agencies will have found ways of hacking into them. Crypto is a digital currency. That means it is controllable and is susceptible to an EMP attack, if there was one. Crypto was brought to the attention of the general population by film & pop stars, and mainstream media, which makes me think it is part of a plan to get people onto a digital currency. I know it has existed long before 2019 but that does not mean it isn’t part of the agenda.

To me Crypto is another form of investment. Money can be made, and it can be lost, just like any other investment. All investments are digital in my eyes. They are just numbers that get moved around. They only become real when they are converted into cash. I believe crypto is part of the agenda. It is definitely part of the current financial system which the government is trying to bring down. At the moment money can be made from crypto but ...

What will happen to it after the financial crash?

What will happen to crypto once the new digital currency comes in?

Will crypto still be available or will the government remove all trace of it and convert the funds into their digital currency in their one world bank account?

Or will they just make it disappear?

My biggest problem with crypto is that it is web based and I don’t like anything web based, including the cloud-based accountancy software packages I have to work with. HMRC are making everything they deal with web based – which makes it controllable by them, including the amount of tax you pay.

So let’s talk tax

Tax was first introduced into England during the medieval times to fund wars, our wars. Not other countries’ wars; it was reformed in the 1215 Magna Carta where new taxes were introduced such as inheritance and poll tax.

Tax is of the sea. It is a 'Maritime' levy covered by maritime law. It is not part of God’s law. This means that if you are of the land you do not have to pay tax....but you do have to convince HMRC of this. They have been known to close bank accounts and bankrupt individuals and corporations who owe them tax. Sole traders are of the land so, under common law, they do not have to pay tax.

Nowadays everything is taxed. Some things more than once. Even zero-rated foods and products will have been taxed at some point down the line. Most people don’t even realise they are paying tax. It can be very well hidden and is often called something else.

Here’s a little something to get you thinking. According to the Worldometer the population of the UK as of the 14th July 2022 was 68,608,507. If everyone paid £1 in tax that would be £68, 608, 507. The thing is not everyone pays £1 in tax. Some pay less and some pay more. I have taken the UK population figure and done a rough calculation based on averages taken from various statistics, websites and my client base. By my conservative estimation the government takes around £2 trillion in income tax alone in a year. On top of this £2 trillion, you have your national insurance contributions. Class 1 and Class 2 - these are supposed to go towards the NHS and your state pension. Class 3 – this is a voluntary one. It is used to top up your state pension if you have under paid or have gaps in it. It is something self-employed people should look at if they want to get a full state pension when they retire. Paying class 2 national insurance does not give you a full state pension. Class 4 national insurance – this one is a wolf in sheep’s clothing. It is not a national insurance. It is a tax. A tax that only sole traders pay and it is taken from their profits before any allowances are deducted.

Then you have all these other taxes..... Vat - which goes to the European union, even though we are no longer part of it...... Inheritance tax, capital gains tax, stamp duty, airport tax, fuel tax, energy tax, plastic tax, death tax, road tax, council tax, savings tax, dividend tax, import/export duty, insurance tax, excise duty, land fill tax, climate change levy and many many more.

And, as if we weren’t being taxed enough, from April 2023 there will be a new one – the health and social care levy – to help fund the NHS after Covid.

Comments & Questions Welcome

to be continued ... "People say that the national debt is so great that it will never be repaid. I beg to differ".

Alison Gale

POSTED ABOVE 3 JULY 2023