Class of 2013: Start a Blog

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As everyone is seemingly giving away free advice to those graduating in 2013, I thought I’d do the same for my last ever article for this blog.

For those of you who feel like crying over what I have just said, worry not; I shall soon be undertaking two new projects- a professional legal blog and a not- so- professional personal blog.

Both of those will (hopefully) launch by September 2013.

Back to my original point, then.

I could’ve have easily done an article on how to most efficiently look for a job or various ways of improving your CV; I am quite certain, though, that you have heard all of that before and are, quite frankly, sick and tired of such remarks and pieces of...advice.

That’s exactly why I decided to prove to you that starting a blog might actually be quite a good idea in the end.

I shall, naturally, be as short and sweet as I can; here goes:

It improves your writing skills

Quite self- explanatory, I would’ve have thought...For those in doubt, however, I’d like to point out that writing articles (whatever the topic) greatly improves your writing skills.

Why?

Well, probably and mainly because of the fact that you are aware that other people will read them and,  as a result, do your best to make a good and lasting impression.

It helps you think BIG

Let’s face it; thinking small’s not going to get you anywhere these days. You have to believe that you can make a change in your chosen field.

Also, do remember that most, if not all, employers look for people who are not afraid to realise their full potential and, to quote Superman, ‘show the world what they’re made of’.

It improves your research skills

I can assure you that, regardless of the topic that you have chosen, you WILL do some research before your start writing up an article.

As noted above, as you know that your blog is in the public domain, you’ll think twice before publishing anything that you hadn’t looked into in advance.

It shows you’ve got an opinion

The last employer who was looking for his droids was Luke Skywalker (pretty lame joke but you got my point).

Employers want people who have an informed opinion and, thus, know where they stand.

It improves your commercial awareness

‘We are not only looking for people with an outstanding academic record but also for ones whose commercial awareness will be able to contribute to the business as a whole’

Yeap, we’ve all been there...

Also, if you want people to read your blog (which you will, trust me) you are going to have to come up with interesting and trending topics.

How do you do that?

By reading the news and listening to podcasts, of course.

Before you know it, you’ll be jumping in people’s conversations, annoying the Hell out of them!

It helps you stay focused and teaches you discipline

When I first started this blog, I was almost certain that I’d not be able to maintain it for more than a month, let alone seven months as I’d planned originally.

In time, however, as people started to read my articles, I started feeling really bad when I even dared think about not submitting my daily entry.

It gets you into a frame of mind whereas because you know that you have to do something you just put all of your energy, attention and effort into in and do it.

It helps you get noticed

A friend of mine used to say ‘it’s not what you know these, it’s whom you know’. Although I disagree in that I am of the belief that a fine blend of those is essential, I trust that knowing the right person does help under certain circumstances.

Believe it or not, a specialised blog is a pretty good platform for taking the initial steps to your career.

Well, class of 2013, I trust that the above should be sufficient to convince you that starting a blog can be immensely beneficial to your professional development, whatever the sphere you’ve chosen.

For now, I bid you adieu.

...for now.

‘Academic’ Intelligence: A (Very) Brief Overview of Tax, Part Three

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Today’s article is the final one on taxation and will endeavour to look into some basic issues surrounding Inheritance Tax (‘IHT’).

The basic rule is that, when a person passes away his estate is taxed at 40% so long as it amounts to more than £ 325, 000. If the value of the estate is below £ 325, 000, or within what is known as the Nil Rate Band (‘NRB’), it is taxed at 0%.

‘Estate’ means (in general terms) everything that the deceased owed at the time of his death.

Let us an example:

John passed away in January 2012. He left a will saying that his Rolex watch and his doughnut business were to go to his son, Dan whilst everything else was to go to his wife, Gemma. At the time of his death, his estate consisted of:

• His VW Passat- £ 2500
• His Don King Doughnuts LTD business valued at £ 300, 000, which he had owned since 2000
• 12 Donald Road, a property he owned with his wife, Gemma, as joint tenants- £ 200, 000
• HSBS Bank account in his sole name- £ 1000
• His Rolex Watch- £ 1000

In February 2003 John made a gift of £ 1000 to his, Dan.

In March 2010, John made a gift of £ 3000 to his daughter, Jodie.

In December 2011, John paid £ 3000 into the Dog Trust.

John’s death estate is made up of his VW, his doughnut business, ½ of the jointly owned property, his HSBC account and his Rolex watch and is, therefore, calculated as follows:

£ 2500 + £ 200, 000 + £ 80, 000 (1/2 of the price of the property – 10% its value for IHT purposes) + £ 1000 + £ 1000= £ 384, 000.

The taxable estate, however, is another matter.

Under the will, Gemma, John’s wife, is to inherit everything but the Rolex and the Doughnut business, id est £ 183, 000. This sum is fully  IHT exempt as the ‘spouse exemption’ applies (s. 18 Inheritance Tax Act 1984 ‘IHTA’).

The doughnut business is covered by the business property relief (‘BPR’), ss. 103- 114 IHTA, as John had owned it for more than two years and was a limited company (unquoted shares).

The Rolex is not covered by any exemptions.

The two transfers that John made to his daughter and his son are called Potentially Exempt Transfers (individual to individual, ‘PET’) and are only taxed at 40% if the donor, i.e. John, does not survive within seven years of the gift.

The gift of £ 1000 to Dan, then, will not be taxed as John has survived the seven years.

The gift of £ 3000 to Jodie will, however, will attract IHT. Taper relief does not apply here because the donor has failed to survive at least free years (for more on taper relief and its application, please see << http://www.hmrc.gov.uk/inheritancetax/how-to-value-estate/gifts.htm#4 >>).

The final transfer of £ 3000 that John did into the dog trust is called a Life- Time Gift (individual into a trust, ‘LCT’).

IHT at 20% is payable at the onset; i.e. John should have paid £ 600 when he initially made the gift. If the donor survives for seven years, no further charge will be applied. Otherwise, IHT will need to be recalculated at 40% and the balance paid to HMRC.

In our case, however, an Annual Exemption of £ 3000 can be applied to the LCT; thus, it will not be included in the taxable estate.

 In the light of the above, then, the John’s taxable estate is made up of the HSBC account and the gift to Jodie, id est £ 4000.

As, however, this falls in the NRB, the IHT is paid at 0% and, thus, no IHT is due.

IHT calculations (much like CGT, CT, etc. ones) are, of course, much more complicated than the above examples and, should you need advice on your tax planning, I suggest you go to a specialist solicitor rather than referring to my articles as they are but a mere overview of various taxes in the UK.

Poet's Corner: Gluttony

Look: a fiery pit-

The words which carry

Our own glutinous mind.