Firm closing

[Non-Believer]

9 minutes ago, english zloty said:

https://www.tynwald.org.im/spfile?file=/business/opqp/sittings/20212026/2024-GD-0035.pdf

if you need a laugh, this will cheer you up. DFE made up figures for the past year

DFE - "The Department will continue to operate with the highest levels of financial discipline to ensure responsible stewardship of public funds."

just don't mention Love IM.

DFE - "In addition to directly supporting the retention of over 37,200 private sector jobs"

are they mad?

Don't mention Cube either. Or Vision 9. Or World TT Series. Or fairy houses.

[John Wright]

2 minutes ago, Anthony Ingham said:

How does a VAT bill cripple a business?

The Boathouse

“

Important announcement! As of this week we have made the incredibly difficult decision to reduce the restaurants opening hours. 

Unfortunately we just can't continue to operate as  much as we would like as the  VAT bill has been crippling us and the only option we have is to close our doors completely or operate at the weekend only. 

We love what we do and want to continue to offer our hospitality to our growing loyal customers for as long as possible so we hope you continue to support us in these difficult times.

Anyone with an existing booking within the times that are now closed will receive email confirmation that their booking has now been cancelled. We would be happy to rearrange your booking. 

On a more exciting note our new menu for May is being released this evening so keep your eyes peeled 👀

It’s having to pay it when you haven’t budgeted/provided for. I had a VAT bank account and transferred VAT received every week. Meant I always had the funds available.

My business, like a restaurant, had few VAT inputs.

Many businesses don’t provide and the quarterly bill comes as a surprise. Transferring funds or making proper provision as you go allows you to have a better idea of whether your business is a going concern.

[Numbnuts]

8 minutes ago, Non-Believer said:

Don't mention Cube either. Or Vision 9. Or World TT Series. Or fairy houses.

Film studios , Powerstation , it goes on and on .Hold your breath on the wind farm . Bound to be a massive overspend/cockup .

Edited April 29 by Numbnuts

[Two-lane]

24 minutes ago, english zloty said:

https://www.tynwald.org.im/spfile?file=/business/opqp/sittings/20212026/2024-GD-0035.pdf

 

My opinion of this type of document is that it is about style rather than content. It is created by and for people who like bright, shiny, colours and and a variety of arrows and lines and curves.

Dull, boring, analytical text and spreadsheets are not for the kind of people who created this.

If someone really wanted to analyse what was going on, I do not think that the data would be represented in this style.

Edited to add: How much did it cost to produce this, compared to a text-only document?

Edited April 29 by Two-lane

[english zloty]

10 minutes ago, Two-lane said:

My opinion of this type of document is that it is about style rather than content. It is created by and for people who like bright, shiny, colours and and a variety of arrows and lines and curves.

Dull, boring, analytical text and spreadsheets are not for the kind of people who created this.

If someone really wanted to analyse what was going on, I do not think that the data would be represented in this style.

Edited to add: How much did it cost to produce this, compared to a text-only document?

the headline is at the end. it appears DFE costs £1.5 million more than it makes, despite a £16 million nest egg from Registrations.

[Anthony Ingham]

1 hour ago, John Wright said:

It’s having to pay it when you haven’t budgeted/provided for. I had a VAT bank account and transferred VAT received every week. Meant I always had the funds available.

My business, like a restaurant, had few VAT inputs.

Many businesses don’t provide and the quarterly bill comes as a surprise. Transferring funds or making proper provision as you go allows you to have a better idea of whether your business is a going concern.

So again it really just comes down to running a business properly and knowing what you are doing.

People who include VAT collected for government as income and spend it are lining themselves up to fail.

VAT for a restaurant is very simple and of course means they can claim back so if turnover is down it shouldn’t be a big deal or a surprise.  A big VAT bill means a business is doing well in terms of income vs outgoings (ex wages) so if someone can’t manage it then they don’t have a grip of their running costs or margins.

Edited April 29 by Anthony Ingham

[Anthony Ingham]

4 hours ago, Passing Time said:

Yet the commissioner clowns object to new housing that could attract younger people to live in Ramsey

 

2 hours ago, Blade Runner said:

Says the person who changes the paper in the printers at Starship Enterprise...........

 

2 hours ago, Non-Believer said:

The Stella's of St Paul's Sq. Hefty rent and the business rates wouldn't have helped, smaller businesses aren't as well equipped as the bigger ones to handle the pressures now being faced.

Hmmmm

I wonder why this superb example of how to make a shop inviting and somewhere you would want to visit is struggling?

PS.  Its worse inside than it looks from outside.

Its a shame, but anyone blaming government or rents or the economy is deluded.

 

[WTF]

12 minutes ago, Anthony Ingham said:

 

 

Hmmmm

I wonder why this superb example of how to make a shop inviting and somewhere you would want to visit is struggling?

PS.  Its worse inside than it looks from outside.

Its a shame, but anyone blaming government or rents or the economy is deluded.

 

have they been burgled ?

[CallMeCurious]

I believe there are two ways to pay VAT for SME.

One is to calculate VAT 20% on invoices in and VAT 20% on invoices out and pay the difference. Basically, you reclaim VAT on every single purchase against the VAT you collected from sales. 

The other is to pay a flat rate scheme by trade (like hairdressers 13%, catering 12.5%, retail food 4%) on sales only. Different trades have different rates which are all less than 20% but you can't reclaim VAT unless it's a large capital purchase .

Either way you have to account for them, literally, in your cashflow.

 

[Non-Believer]

50 minutes ago, Anthony Ingham said:

 

 

Hmmmm

I wonder why this superb example of how to make a shop inviting and somewhere you would want to visit is struggling?

PS.  Its worse inside than it looks from outside.

Its a shame, but anyone blaming government or rents or the economy is deluded.

 

Some people like shops like that, it's part of the appeal. Look how long Jurby Junk and Moochers thrived. Olde Worlde places where you could meander.

But isn't it strange that all these business closures/reductions in hours that we are now seeing are all citing similar causes, some after being in business for long periods of time?

[Anthony Ingham]

7 minutes ago, Non-Believer said:

Some people like shops like that, it's part of the appeal. Look how long Jurby Junk and Moochers thrived. Olde Worlde places where you could meander.

But isn't it strange that all these business closures/reductions in hours that we are now seeing are all citing similar causes, some after being in business for long periods of time?

Well, the day I did go in there wanting to buy something there was nobody in the shop who could process a transaction.  They asked me to come back a few hours later.

I really think there is a bit of bandwagon jumping as businesses that are just not very good close and make a statement.  Up until recently they just closed and nobody noticed.

I doubt there are five people who will read this who would have ever known that shop existed or had closed if it wasn’t for social media on 2024.  Ten years ago people wouldn’t have noticed or cared.

On the positive.  A new restaurant is opening next door.

[The Voice of Reason]

3 hours ago, Anthony Ingham said:

So again it really just comes down to running a business properly and knowing what you are doing.

People who include VAT collected for government as income and spend it are lining themselves up to fail.

VAT for a restaurant is very simple and of course means they can claim back so if turnover is down it shouldn’t be a big deal or a surprise.  A big VAT bill means a business is doing well in terms of income vs outgoings (ex wages) so if someone can’t manage it then they don’t have a grip of their running costs or margins.

Well yes. VAT is not a bill, Wages and ITIP are also not bills. It’s a bit disingenuous  to say that.

That said it’s a shame to see the likes of this restaurant failing. I’ve been there on a couple of occasions and it’s been very good and at at least 80% capacity but prices on the high side. 

[The Voice of Reason]

1 hour ago, Anthony Ingham said:

 

 

Hmmmm

I wonder why this superb example of how to make a shop inviting and somewhere you would want to visit is struggling?

PS.  Its worse inside than it looks from outside.

Its a shame, but anyone blaming government or rents or the economy is deluded.

 

Perhaps you could offer your services as an Alex Pollizi (sp)  Hotel Inspector kind of makeover person.

 

[Anthony Ingham]

21 minutes ago, The Voice of Reason said:

Perhaps you could offer your services as an Alex Pollizi (sp)  Hotel Inspector kind of makeover person.

 

That is actually a thought process that is being considered, but I don’t think there is sufficient market here, and most places think they are doing everything correctly so wouldn’t entertain paying someone for their input.

There are so many places that obviously never do a walk through with “fresh eyes” who would really benefit from doing so.

[woolley]

5 hours ago, John Wright said:

It’s having to pay it when you haven’t budgeted/provided for. I had a VAT bank account and transferred VAT received every week. Meant I always had the funds available.

My business, like a restaurant, had few VAT inputs.

Many businesses don’t provide and the quarterly bill comes as a surprise. Transferring funds or making proper provision as you go allows you to have a better idea of whether your business is a going concern.

Business folk tend to have a pretty accurate appreciation of where they stand, or they certainly should. If the quarterly VAT bill comes as a surprise, they really shouldn't be in business at all in their own best interests. If things are running properly, VAT is a rolling interest free loan to them of between 1 and 4 months (average 75 days) tax at all times that should assist cashflow rather than kill the business. That money can be put to work in the interim.

Any entity, large or small, should be continuously aware of it's approximate financial position for income, payables and taxes. If you have minimal VAT inputs, you (hopefully!) know what you have taken over a quarter so you can work it out in seconds in your head - a sixth of the sales/takings will be on the right side.

How many businesses today don't have accounting software anyway? Even the most inexpensive rudimentary packages can give a balance sheet in real time. It's elementary stuff.