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1.3 Finance
14. The Window Cleaner (TWC)
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13.13 The Window Cleaner:
1. The Window Cleaner (TWC) is a generic business model that has significant benefits to some organizations.
2. The Windows Cleaner is an example of a business that gets paid by many customers with negligible regulatory control.
3. It is suggested that many businesses would benefit by deploying the key characteristics of this TWC business model.
4. TWC is about IR45 where a person is said by HMRC to be employed by a company as an employee when all parties imagine the person to be self-employed.
5. TWC is about zero-hour contracts where people are employed only when they are needed to do a job.
6. TWC is about the Uber business model that is replicated by delivery drivers, couriers and people paid by the job.

2. Characteristics:
1. TWC is classified as self-employed in the eyes of each customer.
2. TWC is paid to do a specific job and is not paid by the hour, day, week or month.
3. TWC is responsible for specific job and is responsible for correcting any errors.
4. TWC is will use their own tools and equipment - they will do their own safety checks and calibration.
5. TWC is will use their own methods and procedures - the customer will only give outline direction of WHAT needs to be done and not HOW the job should be done.
6. TWC may work with a mate and may be substituted by another person from time to time.
7. TWC cannot be fired by a customer - the customer can terminate their own job, but TWC will continue to do other jobs.
8. It would be illogical to say TWC is employed by the customer and the customer is liable for taxation, pensions, holiday and other rights.
9. It would not be practical for the customer to employ TWC with a service contract and operate a payroll for the duration of a cleaning job.
10. TWC is personally responsible to self declare their income and to pay all applicable taxes.   TWC may claim all reasonable costs of doing business that are wholly and exclusively neccessary to do the jobs.   Taxable income is the profit between revenue paid by customers and purchases paid to suppliers.
11. When TWC has revenues exceeding the VAT threshold, then TWC would be obliged to charge the customer VAT and to pay that VAT to HMRC each quarter.   Being VAT registered means that purchases from suppliers include VAT that can be deducted from what is paid to HMRC.
12. Typical profit margins between revenue and cost of sale will be less than 10% and may be 1%.

3. Paid By the Job:
1. The Window Cleaner (TWC) is a metaphor for a new era jobs that are paid by the job and not by the hour.
2. Governments are likely to legislate to reduce paid-by-the-job employment and zero-hour contracts, but Governemnts cannot stop the right of people to earn a living.
3. It is suggested that many traditional jobs will evolve from employment by the hour to self-employment by the job.
4. It is likely that in the future more people will earn a living using a business model that resembles that of The Window Cleaner.
REASONS:
  (1) People enjoy the benefit of working the hours that they choose.
  (1) People wish to be free to choose when they take their holidays.
  (1) People are not concerned with retirement and pensions many years into the future.
  (1) People want to have costs deducted from their revenue and only pay taxes on their profits.
  (1) People may choose to work many hours some months and a lot less hours other months.
  (1) People wish to take a year off to travel the world.
  (1) People may want to be their own boss and not have other people order them around.
  (1) People want to do things their way and not the way that others may want things done.
  (1) People may want to meet with many customers each day and gain a reputation as a nice person.
  (1) People wish to pay taxes on the profits they make rather than the revenue they earn.

4. Modern Slavery:
1. Traditional employment is based on modern slavery where a boss gets rich by employing people to earn more than they are paid.
2. Payroll makes Government taxation easy based on the total earned by a person - without expenses.
3. Employed people are told when they can and when they cannot have a holiday.
4. Employed people are told what they must contribute to their pension plan with a value reduced by inflation.
5. Employed people are told the time they must arrive at work and the time they may leave.
6. Employed people are told when and where they can eat and drink.
7. Employed people can be fired when their boss does not earn more from them than what they are paid.
8. Employed people are told what to wear and how to behave, what to say and when to shut up.

5. Future:
1. In the future, people will either choose modern slavery by working for a boss or can choose to be paid by the job by working for themselves.
2. Events will prove if people want to be their own boss or to work to make somebody else rich.
3. It is suggested, that as a business model, to have businessess that help a lot of people become their own boss will have many benefits.
4. A large number of small companies is always more stable than one big company.
5. Where each small company has one owner-manager, then the company is agile, is highly motivated and can do whatever the customer wants.
6. Where a large number of small companies act together in a federation, then they can act as a big company without any of the problems.
7. Each small company will compete with every other small company and will discover its niche that it does better than all the other small companies.
8. The federation of small companies can win large project contracts because it has the in-depth skill to do any project better than any big company.
9. Small companies have lower overheads and a lower cost of doing business - economies of scale do not work when managing the cost of doing a job where labour is the primary cost.
10. Small companies do not need legal, financial and auditing overheads, do not pay idle shareholders and do not need to pay a payroll.
11. Big companies need to pay extra taxes, extra audits, for extra reporting and for health and safety.
12. Big companies have a significant environmental impact and social responsibility with associated costs.

6. Sovereignty:
1. Governments have taxation regulations to cover companies operating within national borders, but have a light touch on multi-national companies that operate in all parts of the world.
2. International tax treaties exist to minimise double taxation, but these are set and too hard to evolve with the advent of crypto-currencies that act as international cash.
3. Governments are able to make people use banking systems so taxation becomes practical, but banking systems cannot manage modern crypto currencies for the benefit of taxation.
4. "Royal Mint Digital Gold" is a typical crypto currency that may be bought and sold in any part of the world.
5. It is not reasonable for any Government to impose income tax on profits made in any crypto currency in any part of the world.
6. It may be hard for any Government to impose purchase tax (VAT) on purchased made in crypto currency in any part of the world.
7. When the physical location of a customer or supplier is not defined, then taxation sovereignty becomes a challenge.
8. When a person in the UK, buys some services in China and sells those services in Australia using a crypto currency, then how can any Government claim what tax is due.   The broker in the UK may earn a commission on the transaction that is classified as taxable revenue, but how can that revenue be quantified in UK pounds.   The broker in the UK may imagine the sale in Australia as revenue and the purchase in China as a cost of sale, but that implies that some exchange rate to GBP is practical and meaningfull.   The broker in the UK may be an employee of a company registered in Gibralta.

Document Control:
1. Document Title: The Window Cleaner.
2. Reference: 161314.
3. Keywords: The Window Cleaner.
4. Description: The Window Cleaner.
5. Privacy: Public information service for the benefit of mankind.
6. Issued: 11 Dec 2018.
7. Edition: 1.2.