- Published: 08 December 2009
- Written by NStinchcombe
Clarity Commerce warns to plan now for VAT change, or suffer the resulting headache
London, 08 December 2009 : Clarity Commerce, a leading specialist in the delivery of mission critical transaction processing solutions for the Ticketing, Hospitality, Retail and Leisure sectors, today heralded the countdown on New Years Eve and with it the return to 17.5% VAT as Big Ben sounds midnight[1]. It warns UK businesses to look sharp, think ahead and plan efficiently now in preparation for the change or face starting the New Year with an enormous administrative hangover.
In a government impact assessment, it estimates implementing changes to VAT in time for January will cost millions in administration fees as businesses align themselves with the old rate of 17.5 per cent. An outlay that could be repeated if the rumour is true that, should the Conservatives gain power at the next election, they plan to increase VAT to 20 per cent – a rate that could take effect within weeks of a victory.
To help prepare for the imminent increase, Clarity recommends the following for consideration:
· Communicate, Communicate, Communicate : Speak to your staff and explain what your procedures are for the change and determine their role (if anything).
· Update all price lists and promotional signage that show the VAT rate. Failing to do so will cause confusion amongst customers and give the impression that you are inept.
· 24 hour businesses must decide how and when to change the rate. HMRC have announced special arrangements for these businesses to account for 15% VAT on takings received up to the earlier of the end of trading, or 6am.
· Talk to your EPOS providers - TODAY. Discuss with them what needs to be done to your systems and how they can help? Can you configure the rate change in advance and have it automatically activate at midnight? Can you make the change yourself or do you need someone to come in to do it? And if so, on New Year’s Day, is it too expensive?
· Receipts will also need the rate to be changed, which system issues these?
· Don’t just think about your POS - what other sales channels do you use : websites, kiosks, phone applications, hand held terminals, etc.
· Use the change to your advantage by running promotions : for example, ‘last chance 15% VAT saloon’, etc.
· Consider your own costs – can you make savings by making bulk purchases before the New Year?
· Finally, if you cannot make these changes, or there is a cost that is too great to bare on the night or the 1st of January, then make a statement that you will continue to offer the reduction as a discount and promote that you’re ‘VAT Friendly’ - just make sure you keep a record of your full VAT commitment.
Justin Hollins, Director of Business Development of Clarity Retail Systems offers the following advice, “If you’re a 24hr business, such as a nightclub, hotel or convenience store, you’re going to run through the night regardless. That said, what you need to decide – and this is true for every business, is do you change your systems in advance, at midnight, at a given point during the session, the next day or in a couple of days time – what you mustn’t do is forget to do it or worse ignore it. By asking yourself the questions outlined you’ll gain an insight into what will work for you and your business. With this understanding you can plan for the change, ensuring you won’t get caught short and leaving you to sit back, relax and enjoy the festivities. Cheers.”
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About Clarity Commerce
Clarity's software helps retail, leisure and entertainment companies to win and retain customers. It works by processing and tracking transactions more efficiently, solving problems such as long queues, slow customer service, lack of reliable information and poor co-ordination of sales channels.
Clarity brings fresh thinking to business problems by using its expertises from other sectors, giving businesses the tools they need to get more information from their customers, increase business control and boost profit.
Established in 1993, Clarity is headquartered in Basingstoke, UK and has 578 customers worldwide, including Reebok Sports Club, UGC Cinemas, Peel Hotels and Universal Studios Florida.
For further information, please visit www.claritycommerce.com
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If you would like to interview a representative from Clarity Commerce please contact:
Yvonne Eskenzi
Eskenzi PR
Tel : +44 (0)207 183 2832
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.
[1] For more information on the VAT change visit : http://www.hmrc.gov.uk/briefs/vat/brief6809.htm
