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By *oi_LucyCouple
over a year ago
Barbados |
"More good news for the UK  "
Potentially. The UK has a fantastic creative and IT industry (I'm a bit biased, I work in it). And one of the reasons brexit is such a concern is that this is an industry that relies on cross-border working and business. It will be very interesting to see what happens with things like VAT when we leave the EU as the recent changes to VAT have forced a lot of small businesses out due to increase in red tape. The changes by the EU of the 'place of supply' for VAT caused a lot of trouble in this industry for small players.
Snapchat is loss-making, so there won't be any tax revenue from them for a while. So the corporation tax rate (or lowering of) is not that relevant. They do say they may employ some engineers here, they already have 70 staff here. They are currently advertising for jobs, but most of which are legal and accounting. Which makes me believe that we might end up with another Starbucks-like scenario in which they claim no profits here.
-Matt |
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By (user no longer on site)
over a year ago
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Exactly so it isn't really any good news at all.
Just like the FTSE 100, basically none UK Companies doing well on paper due to them reporting in Dollars vs a ravaged Sterling yet their main bulk of profit / production is outside the UK anyway so we get very little gain from them.
this is a good report on the FTSE 100 VS FTSE 250
http://www.independent.co.uk/news/business/news/ftse-100-record-high-why-pound-value-crash-brexit-a7502401.html |
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By (user no longer on site) OP
over a year ago
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"More good news for the UK
Potentially. The UK has a fantastic creative and IT industry (I'm a bit biased, I work in it). And one of the reasons brexit is such a concern is that this is an industry that relies on cross-border working and business. It will be very interesting to see what happens with things like VAT when we leave the EU as the recent changes to VAT have forced a lot of small businesses out due to increase in red tape. The changes by the EU of the 'place of supply' for VAT caused a lot of trouble in this industry for small players.
Snapchat is loss-making, so there won't be any tax revenue from them for a while. So the corporation tax rate (or lowering of) is not that relevant. They do say they may employ some engineers here, they already have 70 staff here. They are currently advertising for jobs, but most of which are legal and accounting. Which makes me believe that we might end up with another Starbucks-like scenario in which they claim no profits here.
-Matt"
err loss making? A company that is valued at £21 billion? I don't think so. And all taxes will be paid in the UK |
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By *oi_LucyCouple
over a year ago
Barbados |
"More good news for the UK
Potentially. The UK has a fantastic creative and IT industry (I'm a bit biased, I work in it). And one of the reasons brexit is such a concern is that this is an industry that relies on cross-border working and business. It will be very interesting to see what happens with things like VAT when we leave the EU as the recent changes to VAT have forced a lot of small businesses out due to increase in red tape. The changes by the EU of the 'place of supply' for VAT caused a lot of trouble in this industry for small players.
Snapchat is loss-making, so there won't be any tax revenue from them for a while. So the corporation tax rate (or lowering of) is not that relevant. They do say they may employ some engineers here, they already have 70 staff here. They are currently advertising for jobs, but most of which are legal and accounting. Which makes me believe that we might end up with another Starbucks-like scenario in which they claim no profits here.
-Matt
err loss making? A company that is valued at £21 billion? I don't think so. And all taxes will be paid in the UK"
*sigh*
You do know the difference between revenue, profits, and valuation right?
-Matt |
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By (user no longer on site) OP
over a year ago
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"More good news for the UK
Potentially. The UK has a fantastic creative and IT industry (I'm a bit biased, I work in it). And one of the reasons brexit is such a concern is that this is an industry that relies on cross-border working and business. It will be very interesting to see what happens with things like VAT when we leave the EU as the recent changes to VAT have forced a lot of small businesses out due to increase in red tape. The changes by the EU of the 'place of supply' for VAT caused a lot of trouble in this industry for small players.
Snapchat is loss-making, so there won't be any tax revenue from them for a while. So the corporation tax rate (or lowering of) is not that relevant. They do say they may employ some engineers here, they already have 70 staff here. They are currently advertising for jobs, but most of which are legal and accounting. Which makes me believe that we might end up with another Starbucks-like scenario in which they claim no profits here.
-Matt
err loss making? A company that is valued at £21 billion? I don't think so. And all taxes will be paid in the UK
*sigh*
You do know the difference between revenue, profits, and valuation right?
-Matt"
yes. So can you tell me what this companys' profits were last year or are set to be this year? |
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By *oi_LucyCouple
over a year ago
Barbados |
"More good news for the UK
Potentially. The UK has a fantastic creative and IT industry (I'm a bit biased, I work in it). And one of the reasons brexit is such a concern is that this is an industry that relies on cross-border working and business. It will be very interesting to see what happens with things like VAT when we leave the EU as the recent changes to VAT have forced a lot of small businesses out due to increase in red tape. The changes by the EU of the 'place of supply' for VAT caused a lot of trouble in this industry for small players.
Snapchat is loss-making, so there won't be any tax revenue from them for a while. So the corporation tax rate (or lowering of) is not that relevant. They do say they may employ some engineers here, they already have 70 staff here. They are currently advertising for jobs, but most of which are legal and accounting. Which makes me believe that we might end up with another Starbucks-like scenario in which they claim no profits here.
-Matt
err loss making? A company that is valued at £21 billion? I don't think so. And all taxes will be paid in the UK
*sigh*
You do know the difference between revenue, profits, and valuation right?
-Matt
yes. So can you tell me what this companys' profits were last year or are set to be this year?"
I don't believe they have published ones for this year, or forecast for this year, but in 2014 they lost $128 million while bringing in just $3 million in revenue. If they had turned it around to be profitable I think they would have been shouting it out in glee by now. All reports I've read suggest that their operating losses will have increased this year.
-Matt |
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By (user no longer on site)
over a year ago
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"More good news for the UK
Potentially. The UK has a fantastic creative and IT industry (I'm a bit biased, I work in it). And one of the reasons brexit is such a concern is that this is an industry that relies on cross-border working and business. It will be very interesting to see what happens with things like VAT when we leave the EU as the recent changes to VAT have forced a lot of small businesses out due to increase in red tape. The changes by the EU of the 'place of supply' for VAT caused a lot of trouble in this industry for small players.
Snapchat is loss-making, so there won't be any tax revenue from them for a while. So the corporation tax rate (or lowering of) is not that relevant. They do say they may employ some engineers here, they already have 70 staff here. They are currently advertising for jobs, but most of which are legal and accounting. Which makes me believe that we might end up with another Starbucks-like scenario in which they claim no profits here.
-Matt
err loss making? A company that is valued at £21 billion? I don't think so. And all taxes will be paid in the UK
*sigh*
You do know the difference between revenue, profits, and valuation right?
-Matt"
The real answer obviously is no, otherwise a comment such as that would never be posted. |
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By *asyukMan
over a year ago
West London |
It is not bad news though. There will be jobs and spending here.
We can agree on that.
I suppose the concern is that they may just be domiciling here to game the international tax system and they believe that is what the UK will exploit... |
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By (user no longer on site) OP
over a year ago
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"More good news for the UK
Potentially. The UK has a fantastic creative and IT industry (I'm a bit biased, I work in it). And one of the reasons brexit is such a concern is that this is an industry that relies on cross-border working and business. It will be very interesting to see what happens with things like VAT when we leave the EU as the recent changes to VAT have forced a lot of small businesses out due to increase in red tape. The changes by the EU of the 'place of supply' for VAT caused a lot of trouble in this industry for small players.
Snapchat is loss-making, so there won't be any tax revenue from them for a while. So the corporation tax rate (or lowering of) is not that relevant. They do say they may employ some engineers here, they already have 70 staff here. They are currently advertising for jobs, but most of which are legal and accounting. Which makes me believe that we might end up with another Starbucks-like scenario in which they claim no profits here.
-Matt
err loss making? A company that is valued at £21 billion? I don't think so. And all taxes will be paid in the UK
*sigh*
You do know the difference between revenue, profits, and valuation right?
-Matt
The real answer obviously is no, otherwise a comment such as that would never be posted."
I already answered 'yes', just didn't have this years figures.
Now if anybody thinks that this is a loss making company can they explain how? with revenue expected to be around $1 billion next year? |
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By (user no longer on site)
over a year ago
|
"More good news for the UK
Potentially. The UK has a fantastic creative and IT industry (I'm a bit biased, I work in it). And one of the reasons brexit is such a concern is that this is an industry that relies on cross-border working and business. It will be very interesting to see what happens with things like VAT when we leave the EU as the recent changes to VAT have forced a lot of small businesses out due to increase in red tape. The changes by the EU of the 'place of supply' for VAT caused a lot of trouble in this industry for small players.
Snapchat is loss-making, so there won't be any tax revenue from them for a while. So the corporation tax rate (or lowering of) is not that relevant. They do say they may employ some engineers here, they already have 70 staff here. They are currently advertising for jobs, but most of which are legal and accounting. Which makes me believe that we might end up with another Starbucks-like scenario in which they claim no profits here.
-Matt
err loss making? A company that is valued at £21 billion? I don't think so. And all taxes will be paid in the UK
*sigh*
You do know the difference between revenue, profits, and valuation right?
-Matt
The real answer obviously is no, otherwise a comment such as that would never be posted.
I already answered 'yes', just didn't have this years figures.
Now if anybody thinks that this is a loss making company can they explain how? with revenue expected to be around $1 billion next year?"
Experts |
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By *oi_LucyCouple
over a year ago
Barbados |
"
The real answer obviously is no, otherwise a comment such as that would never be posted.
I already answered 'yes', just didn't have this years figures.
Now if anybody thinks that this is a loss making company can they explain how? with revenue expected to be around $1 billion next year?"
The same way most companies make a loss. By spending more than they get in. It doesn't matter if they have a $1 billion revenue if they have $1.1 billion in expenses.
There has been some leaked info saying they are targeting $1B revenue for 2017, but not much in the way of details, or whether they will be profitable on that. Maybe they will be. Maybe they won't. But to think that just because they have a high revenue they will be profitable is not automatically true.
Twitter had a revenue of $602 million for Q2 2016, yet a loss of $107 million.
Remember, this is the crazy world of the internet, a lot of the valuations and revenue predictions seem like fairy tales.
-Matt |
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By *abioMan
over a year ago
Newcastle and Gateshead |
matt... can i ask a question since you seem to know what you are talking about (as opposed to others... )
are we looking as another potential "tech bubble" happening.. and bursting |
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By *imiUKMan
over a year ago
Hereford |
"More good news for the UK
Potentially. The UK has a fantastic creative and IT industry (I'm a bit biased, I work in it). And one of the reasons brexit is such a concern is that this is an industry that relies on cross-border working and business. It will be very interesting to see what happens with things like VAT when we leave the EU as the recent changes to VAT have forced a lot of small businesses out due to increase in red tape. The changes by the EU of the 'place of supply' for VAT caused a lot of trouble in this industry for small players.
Snapchat is loss-making, so there won't be any tax revenue from them for a while. So the corporation tax rate (or lowering of) is not that relevant. They do say they may employ some engineers here, they already have 70 staff here. They are currently advertising for jobs, but most of which are legal and accounting. Which makes me believe that we might end up with another Starbucks-like scenario in which they claim no profits here.
-Matt
err loss making? A company that is valued at £21 billion? I don't think so. And all taxes will be paid in the UK
*sigh*
You do know the difference between revenue, profits, and valuation right?
-Matt
The real answer obviously is no, otherwise a comment such as that would never be posted.
I already answered 'yes', just didn't have this years figures.
Now if anybody thinks that this is a loss making company can they explain how? with revenue expected to be around $1 billion next year?"
Maths. |
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By *asyukMan
over a year ago
West London |
"matt... can i ask a question since you seem to know what you are talking about (as opposed to others... )
are we looking as another potential "tech bubble" happening.. and bursting "
Probably not just a tech bubble. There is a huge equity bubble.
All that quantitative easing has been used to buy equities (shares). Companies have been spending their cash on stock buy-backs pumping up their own share prices. Increasing interest rates mean that the money in the bond market also needs somewhere to go.
There are a lot of companies with huge valuations based on income "potential" and we're about 8 years from the last trough in the economic cycle.
Brexit might be a footnote  |
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"More good news for the UK "
Not only Snapchat, fast food giant McDonald's also announced last month it is moving it's non USA tax base from Luxembourg to the UK. IBM also announced in November it will launch 4 new data centres in the UK. |
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By *oi_LucyCouple
over a year ago
Barbados |
"matt... can i ask a question since you seem to know what you are talking about (as opposed to others... )
are we looking as another potential "tech bubble" happening.. and bursting
Probably not just a tech bubble. There is a huge equity bubble.
All that quantitative easing has been used to buy equities (shares). Companies have been spending their cash on stock buy-backs pumping up their own share prices. Increasing interest rates mean that the money in the bond market also needs somewhere to go.
There are a lot of companies with huge valuations based on income "potential" and we're about 8 years from the last trough in the economic cycle.
Brexit might be a footnote "
Fabio: what he said up there ^^^^
I can't speak to the wider economic world... it seems pretty dire to me... but I don't know enough about quantitive easing and the likes to comment.
But as for the tech side... I do think we are in another tech bubble. I mean just look at some of the acquisitions going on and claims. E.g. the Snapchat claim of $1B revenue. Yet no profit as far as we can see. I, personally, hope it lasts another year at least as for me personally it could do with lasting a bit longer. I'm heading over to LA on Saturday so might get a better feel then.
One of the biggest trends driving things at the moment is the Internet of Things (IoT). The trend at the moment is for every. fucking. thing. to be connected to the internet. When you start seeing companies devising systems for barcoded dispensing of proprietary wine bottles you know it's gone wrong. Most of the ideas are literally shit... but they seem to be still managing to get to market somehow.
So based purely on timing and cycles... yes, it feels like there could be another big crash coming up. It was 8 years since 2008, 8 years before then was 2000. But then.... California has been expecting the 'Big One' all this time and that's not happened yet either. So who knows.
-Matt |
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