First Found’s VAT whinge not so clever
Manchester search engine consultants First Found, reckon the decision to cut VAT has cost them £10,000, a not insignificant amount for a small business. But not all publicity is good publicity.
The resulting media coverage strongly implies the cost is the result of reprogramming First Found’s bespoke accounting system and that First Found developed that system in house.
One would expect a competent accounting system to take changes in VAT in its stride. After all nobody can expect any tax rate to remain constant forever; all taxes go up and down from time to time.
First Found may be angry at having to spend £10,000 on the change, but in complaining to the media they have apparently exposed an IT blunder of their own and that’s bad news for an IT firm.
Comments (4 comments)
£10,000 spent on implementing the VAT change? It could not have happened to a nicer bunch of people. I made the mistake of dealing with these goons and have regretted it ever since. Their service is useless, they don’t actually do any work for you (apart from putting a couple of stupidly long-winded “phrases” on your home page) and their contracts are designed solely for the purpose of keeping you locked in for as long as possible without any real possibility of leaving.
I am glad they wasted their money, and I am glad they have had negative press this time from their ridiculously shameless PR machine.
Oh, and I think the VAT change cost my business nothing. Which is significantly less than the money I wasted implementing FirstFound.
Abu Eesa / December 24th, 2008, 12:22 pm / #
Just a thought: perhaps their problem is somehow rooted in the fact that they invoice their customers for an entire 12 month schedule up front (with 12 different tax dates) – presumably as a way to save money? Ha ha ha. Hahahah. Ha. That backfired, didn’t it?
Abu Eesa / December 24th, 2008, 12:42 pm / #
Although initially I can see your point, I think it isnt a blunder once you think more about it.
The VAT reduction is supposed to help the country and companies during this “credit crunch”, most people saw through it and that its really of no benefit to the consumer unless they are making large purchases.
Firstfound are not the only company who have had to spend thousands over this VAT change, Marks & Spencers, Morrisons, Asda and HMV to name a few, will also have spent thousands on updating there systems and websites, not to mention having to change price labels on all of their products.
I think Firstfounds point is exactly what most companies and consumers are thinking, that this VAT cut is yet another government blunder and is benefitting no one, in fact its putting more financial pressure on companies rather than help in this present situation.
With the death of Woolworths and also Marks & Spencers having to close stores, the cost of the VAT change seriously out weighs any positive points of it, if any at all.
Logan / January 14th, 2009, 11:24 am / #
I agree couldnt have happened to a nicer bunch of t……..!
doesnt suprise me that they seem to have such a bad reputation in seo forums!
Just a shame it wasnt more money!
popeye / May 10th, 2009, 1:05 am / #
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