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BackyardBullion

Good & Bad news from Mr & Mrs Backyard Bullion

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Good luck backyardbullion and don't worry too much about the VAT, any business that their taking is over 75 grand a year (I think this is the right number ) must register for VAT which can cause a lot of  concern for small business owners, I remember when I had to go through this in 2012, I was sooo worried but it's 2019 now and my business is doing better than ever before.

All the best

Edited by Nick1368

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I wish you both continued success for the future.

Yet another obstacle to overcome as any good business has to, and I am sure you attitude, ethics, and hard work will ensure your future is going to be a good one.

You both deserve it.

And don't forget, you have a lot of people supporting you and the delightful Mrs BYB.

May your dream continue to expand.  Rob

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1 hour ago, Nick1368 said:

Good luck backyardbullion and don't worry too much about the VAT, any business that their taking is over 75 grand a year (I think this is the right number ) must register for VAT which can cause a lot of  concern for small business owners, I remember when I had to go through this in 2012, I was sooo worried but it's 2019 now and my business is doing better than ever before.

All the best

Thanks Nick, we appreciate the words of encouragement, we are excited about the future for sure - it is just a big change!

The turnover threshold is £85,000 at the moment - and for those that are reading and thinking I am making £85,000 per year, that is Turnover, not profit! It it were profit I would be laughing!

1 hour ago, Bullionaire said:

Congratulations on your growth! Even though it does come with a downside. .

Glad I already paid for my 1ozers! :D

Thanks very much my friend!

1 hour ago, ram64 said:

Congratulations on the successful business and more prosperity in the future! :D 

Thanks!

52 minutes ago, rob6 said:

I wish you both continued success for the future.

Yet another obstacle to overcome as any good business has to, and I am sure you attitude, ethics, and hard work will ensure your future is going to be a good one.

You both deserve it.

And don't forget, you have a lot of people supporting you and the delightful Mrs BYB.

May your dream continue to expand.  Rob

We appreciate the kind words, thanks Rob!

44 minutes ago, Martlet said:

Benefit is claiming back VAT on equipment, supplies, new computer so on.  

Yes indeed, there are benefits to being VAT registered. We have taken these into account when deciding how to proceed with pricing. 

44 minutes ago, Silversaving said:

Glad to see you're doing so well with the business. I'll still do what I can to support you from over here in the states. Love your pours.

Thank you very much indeed!

10 minutes ago, HighlandTiger said:

The fact that you have to register for VAT, shows that as a business you are doing something right. :) 

We hope so, its got big this last 6 months and that is down to the customers out there supporting us!

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27 minutes ago, Lr103 said:

Congratulations on needing to do this!  

Can you clarify how this will impact international sales, if at all?

It is a good question. 

A fair proportion of our sales are from outside the EU - primarily from the USA.

These sales will be zero rated (no additional VAT to charge), but they do need to be shipped within 3 months of payment (might affect some people 😉 more than others).

That does not mean the prices are unaffected though. We have decided a small average price increase across the board will allow us to minimise the financial impact of a 20% margin call on UK/EU sales. This will allow us to remain (hopefully) competitive in the UK/EU market and the plan would be to maintain the majority of our customer base. 

But that does mean that my US customers are footing a little bit of that bill by proxy. 

We will be carefully monitoring the situation over the coming weeks and months and if the decision to increase prices across the board impacts our sales in a very adverse way we will look to re-evaluate the situation and the practicality of moving forward for the future. 

I hope that answers your question. It is a very very complex situation with many different elements to consider that all affect our business in different ways!

I have lost many a nights sleep over it this last week in the build up to announcing this today.

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10 minutes ago, BackyardBullion said:

But that does mean that my US customers are footing a little bit of that bill by proxy. 

We will be carefully monitoring the situation over the coming weeks and months and if the decision to increase prices across the board impacts our sales in a very adverse way we will look to re-evaluate the situation and the practicality of moving forward for the future. 

I hope that answers your question. It is a very very complex situation with many different elements to consider that all affect our business in different ways!

I have lost many a nights sleep over it this last week in the build up to announcing this today.

It does answer my question, and that works for me!  I know having a little VAT impact will not reduce my own purchases, and hope this is the case for your orders from others as well 😊

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8 minutes ago, matrawr said:

You'll have to excuse my lack of business knowledge but have you had to pay HMRC anything prior to the VAT?

Congratulations on the growth of your business 👍

Only my usual tax returns as a sole trader through self assessment.

Traditionally VAT is a customer problem and cost. But we are very aware of the impact a 20% additional premium would have on UK sales.

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Congratulations on your growth, it's well deserved👍 

I think most costumers don't worry about the 20%tax , these are quality premium items anyway!! (saying that, i'm happy that I payed already for my April orders 😉)

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7 hours ago, Seasider said:

Does this VAT registration affect the group orders (assuming they continue)? Am I right to think that the group order side of things is quite separate from the production and sale side?

It will not affect the group orders. 

These are a disbursements and are not part of my business anyway - just someone grouping together with some mates to buy in bulk.

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Just now, HelpingHands said:

Would it be legal to have two companies both under the VAT threshold?

One for production and one that buys from the other one to sell?

Yes - esentially as a sole trader your £85,000 threshold applies to all businesses you run as a sole trader. There are some ways around it - but the two businesses have to be very separate and very different usually. 

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