VAT increase?

Options
Primble
Primble Registered Posts: 734 Epic contributor 🐘
Hi Guys

I have had so many customers ringing up stressing about the possible vat increase that may be announced in the emergency budget. we keep telling them we know no more than they do but we recon that there will have to be a bit of notice given. we work on a pro forma basis which led to a lot of angry customers that didn't understand that VAT is charged at the rate applicable at the time of payment as we issue VAT invoices when payment is received. Yet they keep asking us how it is going to work- we're like when we know we will tell you

we have a customer service questionnaire and people marked us down because of the vat increase in january even though there was a years notice, with people saying they didn't know! it was all over the news and we had a disclaimer on our pro formas!!! My colleague even went in on 31st dec to do the banking so that noone could say they had paid when they hadn't. even though i understand why it is being done i don't think the government understands how much extra work it puts on companies.

i can already visualise myself emailing the info pack to customers who are just shouting down the phone at me and refering them to the exact section which made us work how we were.

on the plus side some customers are already paying in full to avoid it

rant over- thanks!

Comments

  • anniem
    anniem Registered Posts: 1,326 Beyond epic contributor 🧙‍♂️
    Options
    I'm guessing that you don't work for the government or HMRC and have any inside knowledge then????? *Joking*

    Customers are so completely stupid sometimes, aren't they?

    Anyway, when you've decided what you're doing about it, please can you tip us the wink :)
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    Options
    anniem wrote: »
    I'm guessing that you don't work for the government or HMRC and have any inside knowledge then????? *Joking*

    Customers are so completely stupid sometimes, aren't they?

    Anyway, when you've decided what you're doing about it, please can you tip us the wink :)

    well if its like last time it's business like usual just with more shouting customers. we can't change how we work for some customers.
  • Beth
    Beth Registered Posts: 40 Regular contributor ⭐
    Options
    Oh wow! You have a horrible job... What ignorant customers you have lol
    Makes me laugh though that they're blaming you guys instead of the government haha
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    Options
    Beth wrote: »
    Oh wow! You have a horrible job... What ignorant customers you have lol
    Makes me laugh though that they're blaming you guys instead of the government haha

    lol i love my job really. if they get too bad i'll just email the guidance notes to them. it was funny when it dropped tho because i had someone ring me going "i'm an accountant i know i'm right and you're wrong" hmm didn't you just press the option for the accounts department. she said she was going to ring inland revenue and then ring me back. she never did
  • Beth
    Beth Registered Posts: 40 Regular contributor ⭐
    Options
    LOL! That is soo funny. I love it when you get someone like that 'blah blah blah I know i'm right!'

    You should have said 'it's at bit worrying that you're an accountant and you're not aware of the VAT change'. Yea, that's a great idea just email them all links to the HMRC website.
  • Jon_1984
    Jon_1984 Registered Posts: 186 Dedicated contributor 🦉
    Options
    Nah - the joy of the VAT increase down to 15% on a weeks notice was a barrel of laughs.....our order entry system vendor supplied a utility to update all unfulfilled orders in the system to the new rate, it also updated every credit note ever raised to the new rate!!!
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    Options
    I'm not looking forward to the increase to 20% that's likely to happen later in the year.
    We VAT registered from 1st June and got a lot of folk to pay up front to avoid it this year (date of payment being the tax point and all that) but next year there's no choice - and it may by 20% not 17.5% next year. Am sure a lot of folk will mutter about it then :/ I'm sure some folk who didn't pay up front will mutter this year too :lol:
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    Options
    when we get the official notice that it is going up we will send as many pro formas out early with a disclaimer so people have the chance to pay before. if not then it will have been all over the news so it's their fault if they choose not to take advantage of it
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    Options
    Primble wrote: »
    when we get the official notice that it is going up we will send as many pro formas out early with a disclaimer so people have the chance to pay before. if not then it will have been all over the news so it's their fault if they choose not to take advantage of it

    Exactly. I think we had about 1/3 takeup when we sent out pre-registration proformas, I hope the other 2/3 will take up the 17.5% proforma before the new rate kicks in!

    Even though it's not our fault, some people do like to shoot the messenger *sigh*
Privacy Policy