Vat Reduction On Monthly Subscriptions

bumblebeebecky23

Hi

Can anyone offer advice on what I should do about a monthly gym membership subscription not offering a reduction in price to reflect the change in VAT rates?

I am currently a member of virgin gym and pay £39 a month as part of a diamond membership (which means it wont ever go up) but when I contacted them to see if they are going to reflect the new 15% vat rate in there monthly charges they said that the diamond membership wont go up or down so basically no.

Is this legal? Technically the monthly payment has gone up if they are only taking 15% for VAT and keeping any difference themselves? surely no-one but the government are entitled to vat money??

RayWolfe

They could be taking the view that the contract for supply was taken before the VAT reduction and that they have given you time to pay.
Alternatevly, they are profiting from the change. Nothing illegal in that anymore than small shops keeping prices the same and bigger shops still using prices of £x.99.
Technically, they probably made the original charge of £xx per month including VAT. They are still doing that.

Ste_C

Shame on them for not passing on the saving of 72p a month!