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Stumblor Pinball & VAT - a sad post (aka I'm very sorry)

stumblor

stumblor

Site Supporter
5Years
Joined
Sep 16, 2018
Messages
3,801
Location
London UK
Humble apologies everyone but the time has come to face reality and admit that I'm over the threshold this year for being a non VAT business. On the one hand, it's awesome, because it means that the business has progressed from a mere side hustle into something that could be a legit business (and full time job) for me this year. On the other hand, it sucks because everything is now going to have to carry a 20% price increase. This will hit the HD pin2dmds the hardest since they are the most expensive items we do.

Changes coming in later today.
 
stumblor said:
Humble apologies everyone but the time has come to face reality and admit that I'm over the threshold this year for being a non VAT business. On the one hand, it's awesome, because it means that the business has progressed from a mere side hustle into something that could be a legit business (and full time job) for me this year. On the other hand, it sucks because everything is now going to have to carry a 20% price increase. This will hit the HD pin2dmds the hardest since they are the most expensive items we do.

Changes coming in later today.
Click to expand...
Don't forget to make a claim for pre-registration input VAT. You can claim back VAT on services supplies to you in previous 6 months and on stock and assets owned at date of registration that were bought for the business in the 4 years prior. Softens the blow a bit
 
Also as you will be able to reclaim VAT on purchases you could look at reducing the nett price to customer so although you are charging VAT the price rise does not have to be 20% increase.

David
 
DAFlippers said:
Also as you will be able to reclaim VAT on purchases you could look at reducing the nett price to customer so although you are charging VAT the price rise does not have to be 20% increase.

David
Click to expand...

That is a good point. I'll make sure to factor that in.
 
Pop Bumper Pete said:
Be glad you do not sell over $50,000 to Australia, other wise you would have to sign up and collect tax for our government also
Click to expand...

Hopefully be the time that happens I can get someone else to do it for me 😳

You start out building flashy lights for pinball machines, you end up filling in 10 page tax forms for governments in other countries.
 
Well deserved success mate!

Couldn't happen to a nicer dude.
 
Completely understand Davey.... Part costs for components and the like have gone silly (if they are still actually available!)..
 
Is a pinball machine classed as part of the tools / equipment necessary for development ?

If you can, you should look into getting the vat back on any NIB purchases you have made in the last four years, same goes for any computers or software etc.
 
CHRIS B PINBALLS said:
Well done mate been there and done it and to be honest it’s not as bad as you probably first imagine
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Same here, when Mrs C first went over the threshold a few years back I had a bit of a brain melt but it's all good now :thumbs:
She's on a flat rate which is available within her industry; 10% year 1 (11% thereafter) her claimable at the standard 20% would be minimal so the flat rate works out better for her.
Also SO much easier for me when submitting her quarterly paperwork.

Good luck

https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay
 
Last edited by a moderator:
Congrats to you but I would try and find another way if possible. Under another family member, split the business. etc

Being VAT registered is a headache and that's not even factoring in the cost of the accountant. Done it before and would never do it again but if you do go that route, best of luck.
 
Okay so a nice little cap end on this story...

It looks as though once you activate VAT in Shopify, it automatically assumes that the original price contains the tax. This is good for a few reasons - one, tax is included in the price on the product page (no nasty checkout tax surprise), two, I don't have to bulk update product pricing , and three (giving some more thought to what @DAFlippers pointed out regarding VAT claims on purchases), it means that my products won't have to increase 20% across the board.

I still need to do some proper calcs on my assembly costs to work out the boring tax claim stuff, and so there will likely be some small incremental increases to even things out, but it won't be anywhere near the 20% increase that I thought a week or so ago. Which is great news, especially for those on the HD pin2dmd list.

One more reason I love Shopify.

Party down. Excellent.
 
stumblor said:
Okay so a nice little cap end on this story...

It looks as though once you activate VAT in Shopify, it automatically assumes that the original price contains the tax. This is good for a few reasons - one, tax is included in the price on the product page (no nasty checkout tax surprise), two, I don't have to bulk update product pricing , and three (giving some more thought to what @DAFlippers pointed out regarding VAT claims on purchases), it means that my products won't have to increase 20% across the board.

I still need to do some proper calcs on my assembly costs to work out the boring tax claim stuff, and so there will likely be some small incremental increases to even things out, but it won't be anywhere near the 20% increase that I thought a week or so ago. Which is great news, especially for those on the HD pin2dmd list.

One more reason I love Shopify.

Party down. Excellent.
Click to expand...
Great news!

Lets celebrate by having a 5% coupon code on lollypops 🤣
 
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