BT line rental VAT reduction

wakeupalarm

With VAT reducing to 15% from 1st December :jwe will have a 25p saving on our monthly line rental. :T Now what shall we all go out and spend it on? :beer:

notbritishgas

I can forsee problems here as we pay our line rental 3 months in advance, so we have already paid VAt at 17.5 % on the period from 1st Dec.

Quentin

No problems - the VAT you paid was correct, and remains correct.

(If they had put up the rate on Dec 1st, you wouldn't be asked to pay the increase on the line rental already paid for in advance.)

[Deleted User]

No need to worry - according to https://www.bt.com you'll get refunds on what you've paid, pro-rated on how much of it is for line rental that falls after 1st December.

blindman

Quentin wrote: »

No problems - the VAT you paid was correct, and remains correct.

(If they had put up the rate on Dec 1st, you wouldn't be asked to pay the increase on the line rental already paid for in advance.)

I wouldn't bet on it.
When the government raised the APD a few years back, all the people that had already bought tickets had to pay up.

VAT will go down on the 1st so IMHO you should get a rebate.
But don't hold your breath, it is BT we're talking about :rolleyes:

Quentin

APD is a different matter to VAT.

There are rules already in place regarding what happens when VAT rates change.

Having said that, now that they have given such long notice that the rate will rise on 1/1/2010, they are going to make a change so that businesses don't "fiddle" the system by setting up a way for them to "forestall" the increase and come up with a way to provide services at the old rate after the increase comes into force!