Pro-European Party Wins Greek Elections

The Markets breathed a sigh of relief yesterday as the centre-right New Democracy party won the Greek elections ahead of the left wing anti-austerity party Syriza. Party leader Antonis Samaras has vowed to respect austerity pledges and is seeking a coalition partner as his party secured only 18.8% of the votes. 

There were widespread fears that Greece would crash out of the Euro had the far left party Syriza won the election. However, the New Democracy party will need to find a coalition partner soon in order to allay fears that Greece is unable to manage its economy effectively and remain solvent.

HMRC Target Online Businesses

The HMRC’s clamp down on tax dodgers continues with online traders being the latest businesses under the spotlight. However, there can be a grey area in determining whether individuals are deemed to be “trading” if they are selling items online. 

The general principal is as follows: If you are selling personal belongings you no longer want, then this does not constitute trading and you are not liable for tax on the profits. However, if you regularly buy and sell items online then this can be deemed to be trading and you will be taxed accordingly. 

Individuals who are not sure whether their activity constitutes “trading” would be advised to consult their accountant as the HMRC will be levying fines for businesses who do not submit their tax returns on time.

Cyprus May Be Next In Line For Bailout

Analysts are now turning to Cyprus which could be next in line for a European bailout of its banks which are heavily exposed to Greece. The banks have already written off more than €3 billion of Greek debt which has resulted in Cyprus Popular bank requiring a bailout. The Cypriot government have already requested support from the European Central Bank but may well look to arrange loans from China or Russia if a decision from Europe is not forthcoming.