VAT cut from an IT perspective

nst68 · 24 Nov 2008 at 17:18

Now that the VAT cut has been announced I wonder how much problems with this cause with IT systems.

I'm pretty sure that the main packages out there will cope with the change, but I'm not so sure about other things.
How many end-users will have created spreadsheets, reports etc that have the rate hardcoded in?

I was just looking at a SQL view that has a quick and dirty

SELECT unit_price * 1.175

(I know there's a thread discussing the VAT increase, but this is more to do with the practical side of implementing it).

scorza · 24 Nov 2008 at 17:24

Maybe it's all a conspiracy to start a Y2k style boom

matt_fsr · 24 Nov 2008 at 17:28

*dusts off CV* "Ahem..... VAT contractor available for hire

nst68 · 24 Nov 2008 at 17:32

scorza said:
Maybe it's all a conspiracy to start a Y2k style boom

Don't forget we can charge to hardcode the rate back to 17.5% again next year

Dj_Jestar · 24 Nov 2008 at 17:41

Hmm.. Freelancing should see a lot of quick 1 shot jobs going. £50 a throw, 1 min of work, win.

Steve2000 · 24 Nov 2008 at 17:50

Surely website designers must realise that the VAT will fluctuate over time regardless, so eventually the need will arise to alter the rate.

Sagalout · 24 Nov 2008 at 17:51

Must admit I was thinking this too.

We run everything to do with quotes and charging off one system, but I've worked at places in the past that have tons of excel sheets, access based 'systems' etc. To launch all this with less than a weeks notice seems a bit daft. Theres going to be an awful lot of misfiled VAT returns in the next few months!

Dj_Jestar · 24 Nov 2008 at 17:52

If it hasn't fluctuated since 1974.. why would it fluctuate anytime soon?

Besides, hardcoded VAT is far from the only corner cut by most web monkeys..

dangerstat · 24 Nov 2008 at 17:59

I think there'll be a lot of website where all of a sudden there is a "2% special discount" in your basket.

GravyMonster · 24 Nov 2008 at 18:17

I can see this causing more headaches than the millenium bug.

Bigpops · 24 Nov 2008 at 18:21

Dj_Jestar said:
If it hasn't fluctuated since 1974.. why would it fluctuate anytime soon?

Besides, hardcoded VAT is far from the only corner cut by most web monkeys..

1974?

I'm sure when I was a lad, VAT was 15%.

mame · 24 Nov 2008 at 18:22

Bigpops said:
1974?

I'm sure when I was a lad, VAT was 15%.

+1

dirtydog · 24 Nov 2008 at 18:25

Dj_Jestar said:
If it hasn't fluctuated since 1974.. why would it fluctuate anytime soon?

Besides, hardcoded VAT is far from the only corner cut by most web monkeys..

1974?

Thatcher put it up from 8% to 15% in 1979.

John Major put it up to 17.5% in the early 1990s.

Duke · 24 Nov 2008 at 18:28

This will cause a lot of extra work for a lot of IT companies, whether it means tweaking DBs, e-commerce sites, accounting software, etc.

Strife212 · 24 Nov 2008 at 19:31

OcUK has this problem by the looks of it, look at the basket, seperate VAT discount

HEADRAT · 24 Nov 2008 at 19:34

dirtydog said:
John Major put it up to 17.5% in the early 1990s.

I thought it went up to pay for the failure of Poll Tax, what a suprise in never came down again

caff · 24 Nov 2008 at 19:49

One of the SOP systems I've 'worked on' has a hardcoded VAT calculation *AHEM*

Luckily I'm a nice guy and have written to the current code owners and informed them of which lines to amend.

Dave M · 24 Nov 2008 at 19:50

Strife212 said:
OcUK has this problem by the looks of it, look at the basket, seperate VAT discount

Actually the website has vat rate set by country (assumes UK if not logged in) so it's very easy to change. I imagine most stores who ship volume to other EU states will find it just as easy.

BUT... VAT doesn't change until the 1st December so we have to still collect 17.5% on behalf of HMRC* - sux - so we discounted the goods to give the same effect as a 15% vat rate.

* I'm not an accountant, but that's what accountants have said

Don't flame me if it's wrong

Strife212 · 24 Nov 2008 at 19:53

^ Ah, makes sense. Thought that might be it after I had posted actually as I realised the VAT change hadn't actually taken place yet.

HangTime · 24 Nov 2008 at 20:31

nst68 said:
How many end-users will have created spreadsheets, reports etc that have the rate hardcoded in?

I was just looking at a SQL view that has a quick and dirty

On the plus side 1.175 or 17.5% is a relatively unique value that isn't really used for much other than VAT, so it should be relatively easy to find most hardcoded occurrences. I'd imagine it'd be much tougher with a more uniform multiplier due to the risk of false positives, or even, heaven forbid, someone letting loose with the old find&replace