Post Tagged with: "Tax"

How Does the Tax Reforms Affect Obamacare?

Judge gavel, stethoscope, and calculatorObamacare insurance providers will raise premiums in 2019 after the U.S. government implemented tax reforms, which repealed a mandate of the Affordable Care Act (ACA).

The mandate refers to the requirements that every American should have health insurance. DECO noted that it remains uncertain how this will affect ACA assistance, as insurers remain divided on renewing their participation in Obamacare’s exchanges next year.

Individual Insurance

Obama insurers will need to reach a decision by spring at the earliest whether to renew its involvement in the insurance exchanges. As for the insurance premiums, it will increase as the mandate’s repeal will cause four million Americans to skip coverage next year, according to the Congressional Budget Office (CBO). Standard & Poor predicts that between three to five million people will not apply for insurance in the next 10 years due to the repeal.

By 2027, the CBO expects 13 million people to forego insurance. This will trigger an annual rate hike of 10% every year beginning in 2019. CBO based its forecast on the fewer number of insured healthier individuals, as they will no longer need to pay penalties if they fail to sign up for insurance.

Obamacare Enrollment

The number of people who signed up for Obamacare under the 2018 enrollment period reached around 8.8 million people, down from 9.2 million Americans year over year. However, this could be because of a shorter enrollment period.

The deadline for applications on the 2017 period lasted until January 31, while the open enrollment period for this year ended by the end of 2017. The deadline for 2018 originally fell on December 15, although publicity for the extended period became ineffective as even insurance brokers were unaware of it.

Hospitals and medical providers need to prepare for the tax reforms’ impact on ACA assistance. On the other hand, more Americans will have to find ways on how to pay for potentially higher insurance premiums in the future.

January 25, 2018 at 4:04 amMind of Money

3 Things You Need to Know About VAT Funding

Accountant's spreadsheet and calculatorVAT stands for Value-Added Tax. This is a type of tax that is often added to a product if there is value added towards the final sale or during the final stages of its production. For instance, if you buy a laptop that is produced somewhere in Europe, the laptop manufacturer pays VAT on every piece of material used to produce the said product. As the end consumer, you pay the applicable VAT. Now, there are cases when the manufacturer needs to get a loan to pay for the VAT they are being charged with.

Corporate and Medical Finance Ltd lists some of the things you need to know about an application for VAT loans.

How does a VAT loan work?

First, you need to find a lending company that offers VAT funding. You inform them about the amount of VAT debt you need to pay, and they will create a proposal to finance the debt for a particular period, normally between three and 12 months.

What are the advantages of getting a VAT loan?

For several SMEs, VAT payments can largely affect their cash flow, especially if there are a lot of challenges and setbacks. This means that the company often need to reduce their working capital just to cover the VAT payments. A VAT loan or funding can help SMEs lighten their load by stretching the payments within a specific term, freeing up any bottlenecks without the worry of being delayed in VAT payments.

Do I need to have good credit to have my VAT loan approved?

Like any loan, lending companies conduct credit and risk profiles checks to ensure credibility and establish good status before the VAT funding is approved. This is why borrowers are advised to work on their credit scores first so they can easily apply for VAT funding and help their cash flow to improve.

Get a VAT Loan Today.

If you’re having trouble with your VAT payments, consider applying for VAT funding. It’s a good and flexible financial solution to your VAT payment problems.

 

 

September 13, 2017 at 5:26 pmMind of Money