Thanks for the video, I had no idea this was planned, it seems very intrusive. For one person limited companies your earnings would be online for the world to see!
A few thoughts. If the figures are shown in a different order, rather than the traditional format of income statement, balance sheet, cash flow, but rather balance sheet, cash flow income statement might be better. Suppliers can also see customer's accounts and make an opinion as to if they can afford a price. I would also ask if members of the civil service would be happy to have their names and salary made public every year, as that is effectively what they are asking to be disclosed.
I would say the vast majority of people wouldnt even know where to look for company accounts or would even bother and if they did would still be banboozled by the numbers, including some of the company owners
Agree to a point but there are scenarios here where having the information to mis read in the first place are dangerous. More here www.heelanassociates.co.uk/your-profits-and-turnover-on-display-to-the-public/
Thanks for highlighting this. Even if the intention is transparency and public disclosure this measure is a really terrible idea! Data Aggregators will undoubtedly collate this information into various Data Sets to be repackaged and resold. Potentially sensitive financial information will then undoubtedly become available to nefarious persons and organisations via Data Brokers who may use it for criminal enterprises. It's unlikely that small businesses will have the resources or expertise to counteract or mitigate these potential problems. The advent of A.I data models will increase the velocity of any unintended consequences beyond the capacity of the Police or Regulatory Authorities to keep pace.
Only people who are familiar with the running of a business will know where to look and (hopefully) they will have an understanding of what the narrative may be behind profit and loss. Ultimately the relationship between provider and customer is important. This should be enough ie. Is the customer getting the service they want at a competitive rate? If so they should be happy to pay regardless of what the profit and loss statements suggest. The quality of service for the cost is vital and reputation is everything. As an example I am a little bit more expensive compared to my competitors however customers are happy to pay this as they know that the results are worth the cost. With all that said my finances should be my private business and I certainly do not want checks and balances printed for the world to see.
Many companies entering a business relationship carry out some due diligence on the other companies so why shouldn't anyone have access to this data to mitigate any risk or exposure?
There has got to be a much more serious punishment for financial crimes, financial fraud and identity theft. Major investment into policing and the enforcement needed. Private data should be protected and only provided to those in the positions of responsibility relevant to any particular account.
The survey can't be completed without checking at least one box in every section. That presumes the person agrees with one of the available comments (question 4 in particular). Leaving an option for 'other' and a text box would have been better. Since I think all concerns are valid but I can't see any that will have a long term impact. Once employers, employees, customers, suppliers and competitors are given time to get used to the new available information, they will be able to correctly (or get close) interpret the data and make more informed choices. Accountants that move first, especially with a significant online presence should be able to help people understand the data better when broken down into sectors and niches 😉 Criminals find it more difficult to hide and accountants have a new revenue stream. Not sure that's a win win 🤔
Wow that is just plain crazy, just what I need more ammunition for customers and competitors to use against us to help grow the UK economy. Thank you for taking the time to keep us informed. Survey Completed. 😎👌🏿
Punishing the many for the corruption/illegality of the few. Drowning in public data doesn’t expose those who hide and launder it, it opens small business owners for too many ridiculous conversations. It is common when growing to operate at a loss or steep discount until your reputation is built and you can charge at market rates or for the value of the service you provide. When the shareholders are private, what’s the point of exposing the same information as a publicly traded company? 🤯
Thanks for keeping us up to date. This is pontentially really damaging for small businesses trying to make ends meet. At the least, this should be opt in/out.
They just need to lower tax to encourage people to earn money. 50k threshold is a joke before start paying high rate income tax. They do kinda limit people over there. You take all the risk I take half of the profit is too much. Idea of Showing PnL to public is like, well done guys good idea, you improved the economy :)
thank you for highlighting this. Form completed. I wonder if the next step is for companies to publicly display all payslips and/or HMRC to make everyone's self assessment available to view online!
Agree with the sentiments below. Also may make people more wary of using a limited company or even go to the extreme of registering the company outside the UK. Do you think these changes would still go through even if the government changes ?
I think it will stop people from deciding to incorporate a company and also i see they increasing the price of all fillings at companies House also. To me, it seems like the government is doing anything to stop new/discourage new business starting and drive down the amount they want to receive in tax
Is it just me that not knowing or understanding the exact reasoning as to how publishing the P&L will aid the greater good and how it is an improvement on the current system. What does it acheive or add that the current system doesn't? Apart from using the terminology of 'More transparent'. I'm not sure of what exact benefit making the P&L to the public will have. What am I missing here?
If the problem, it is solving could be defined then we would be able to make an informed decision. Just saying to be 'More transparent' doesn't mean anything. They need to define exactly the problem this action would potentially solve. @@HeelanAssociates
@@HeelanAssociates thanks - it was a bit weird - wouldn't work on my Iphone, but worked on my laptop - maybe because I'm logged into Microsoft on my laptop?
