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She said it would be fairer for care homes to pay domestic rates, as people live there.
Ok, well abandon all profit and we can talk. They are business rates because it’s a business.
It’s not but that is the option the Tories have chosen because billionaires recording mass profits is more important than businesses being able to run.
6 months is the initial price cap for non-domestic properties, there will be a review before the end of that 6 month period to work out what is required from thereon.
I suspect that after 6 months there will still be support, but it will be more targeted. There’s a good chance that the care home will still be getting support after 6 months.
The home has capacity for 39 guests, given that some have Alzheimers a charitable guess to her gross income before tax and overheads (staff wages, insurance, catering etc) would be around £35,000 a week. Most staff will be on minimum wage and the business will be run as efficiently as possible so being generous that would be a pretax profit of around £20,000 a week.
Let’s be really generous and tax her at 50% for the full year all in.
That’s an annual profit of just over half a £million. £80,000 a year minus her current energy bill is £71,000 a year.
That’s net profit to her of £441,000 or £1,2011 a day.
TLDR Care home owner upset her profits will drop to £1,211 a day due to rising energy prices.
Is there a way that people could setup a LTD company or a trust to pay for their engery bills and then just declare bankruptcy after 6 months?
[deleted]
It will take mass business closures before the penny drops for some people. The Tories are not solving the problem, they are kicking the can down the road in the hopes that people forget about the idea of a windfall tax on energy companies. Any solution offered will just be a sticking plaster while disaster occurs around them.
They should stop having the heating on all summer, totally unnecessary
Sorry I know a care home boss and money is something they aren’t short of. It’s cutting into profits that’s why you get the “sad face” newspaper shots.
> Care home operators are making up to £1.5bn a year in profits with hundreds of millions of pounds going to offshore investors, a think tank has discovered … The Centre for Health and the Public Interest (CHPI) estimated that £1.5bn a year – 10 per cent of the care home industry’s £15bn income – “leaks” in the form of rent, dividend payments, loans, directors’ fees, and profits – money not going to front line care. The CHPI report said it is “very difficult” to find out where the £15bn spent on care homes each year goes.
> Our forensic analysis of the adult care home industry finds that some of the largest for-profit care home providers operate in a way which hinders accountability of their true profitability; increases their financial fragility; and crucially locks in high future costs for care home beds. However, at the same time, many of the smaller for-profit and the largest not-for-profit providers are making low levels of profit, without damaging the public interest.
Unfortunately I can’t see this government making any distinction between not-for-profit homes and corporate owned, unless it’s for the benefit of the latter.
Instead of solving the problem, the Tories are just handing public money to private companies.
Stupid headline. I think the plan is to do it in 6 months stages.
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She said it would be fairer for care homes to pay domestic rates, as people live there.
Ok, well abandon all profit and we can talk. They are business rates because it’s a business.
It’s not but that is the option the Tories have chosen because billionaires recording mass profits is more important than businesses being able to run.
6 months is the initial price cap for non-domestic properties, there will be a review before the end of that 6 month period to work out what is required from thereon.
I suspect that after 6 months there will still be support, but it will be more targeted. There’s a good chance that the care home will still be getting support after 6 months.
The home has capacity for 39 guests, given that some have Alzheimers a charitable guess to her gross income before tax and overheads (staff wages, insurance, catering etc) would be around £35,000 a week. Most staff will be on minimum wage and the business will be run as efficiently as possible so being generous that would be a pretax profit of around £20,000 a week.
Let’s be really generous and tax her at 50% for the full year all in.
That’s an annual profit of just over half a £million. £80,000 a year minus her current energy bill is £71,000 a year.
That’s net profit to her of £441,000 or £1,2011 a day.
TLDR Care home owner upset her profits will drop to £1,211 a day due to rising energy prices.
Is there a way that people could setup a LTD company or a trust to pay for their engery bills and then just declare bankruptcy after 6 months?
[deleted]
It will take mass business closures before the penny drops for some people. The Tories are not solving the problem, they are kicking the can down the road in the hopes that people forget about the idea of a windfall tax on energy companies. Any solution offered will just be a sticking plaster while disaster occurs around them.
They should stop having the heating on all summer, totally unnecessary
Sorry I know a care home boss and money is something they aren’t short of. It’s cutting into profits that’s why you get the “sad face” newspaper shots.
https://inews.co.uk/news/health/care-home-operators-billions-pounds-profits-hedge-funds-360816
> Care home operators are making up to £1.5bn a year in profits with hundreds of millions of pounds going to offshore investors, a think tank has discovered … The Centre for Health and the Public Interest (CHPI) estimated that £1.5bn a year – 10 per cent of the care home industry’s £15bn income – “leaks” in the form of rent, dividend payments, loans, directors’ fees, and profits – money not going to front line care. The CHPI report said it is “very difficult” to find out where the £15bn spent on care homes each year goes.
https://chpi.org.uk/blog/the-hidden-profits-behind-collapsing-care-homes/
> Our forensic analysis of the adult care home industry finds that some of the largest for-profit care home providers operate in a way which hinders accountability of their true profitability; increases their financial fragility; and crucially locks in high future costs for care home beds. However, at the same time, many of the smaller for-profit and the largest not-for-profit providers are making low levels of profit, without damaging the public interest.
Unfortunately I can’t see this government making any distinction between not-for-profit homes and corporate owned, unless it’s for the benefit of the latter.
Instead of solving the problem, the Tories are just handing public money to private companies.
Stupid headline. I think the plan is to do it in 6 months stages.