Just last week, after one of our popular team-building exercises in the depths of the Sussex countryside, I was listening to one of our accountants as he spoke – voice quivering from the cold as he sat, wrapped in a blanket following the trout tickling workshop – about the last time a VAT change occurred.
The process involved them receiving a CD from their accountancy software provider which contained a patch. This patch allowed their software to account for different rates of VAT. Once installed, something went wrong with the software and it caused some of their accounts to go awry. Upon phoning the software vendor they were told the problem was in hand, and that a fix was on the way. So a few days later another CD arrived in the post, containing a new, new patch, which needed installing on all their computers to rectify the problem. At this point in the tale our accountant’s voice began to break, and his eyes welled up with tears as he relived the painful memories of having to use a traditional accountancy solution.
Apart from acting as a half-way house for recovering traditional accountants we also like to make things as simple as possible, this means our accountants have more time for you and need to spend less time beating unhelpful software into bespoke shapes and crying like blubbery infants. This kind of thinking extends to the all new VAT change that everyone is talking about.
The HMRC are hoicking VAT from 17.5% up to 20% as of the 4th of January and unlike with other accountancy providers; Crunch don’t expect you to be ready for it at all. You have better things to like winning new business, buying Christmas Presents and ranting on Twitter about the inadequacies of British public transport.
With this in mind our development team have already put all the necessary programming changes in place, so come the start of the new year all applicable invoices will automatically have VAT applied at 20%. If you need to raise a back-dated invoice, no need to worry – any new invoices dated before the switch-over will have the old rate applied. Simple!
If you’re already registered for Crunch you’ll receive an email informing you of your requirement to do absolutely nothing (and if you’re not registered – why not?!). If you do want to talk to us about how this will affect you in specific instances then just call up your account manager or accountant on
0333 311 8000 and they will talk you through any issues you have. So that’s one less thing to worry about this Christmas.