VAT rise in January

looby-loo_2

I've had a serch so please move if on the wrong board.

VAT is returning to 17 1/2% in January. If I pay extra on my DD for my BT phone line will this save me extra VAT in the future?

For example, if I pay £20 a month at the moment, if I paid £100 on my next DD would that count as being paid now and at 15% or will it be 17 1/2% because the tax point will be January.

I hope someone who knows understands what I'm trying to say and can explain better then me. I seem to remember when VAT was put on gas and electric you could save the VAT by paying in advance

pelirocco

you would save £2.50 .............how ever vat becomes payable when the invoice is raised so BT would have to raise an invoice for it ,and i doubt they would

MrCarrot

I believe it'll be taxed at the time the service was provided. And as someone else mentioned on £100 it's going to save you £2.50 so not really worth worrying about.