Help! British Gas and the 2.5% VAT increase

williamsmd

We purchased a new boiler from British Gas taking the 0% finance offer on the 30th December 2009 paying a deposit of 10% (Over £300.00). The boiler was installed on the 8th Jan 2010. We have today recieved a bill from British Gas for over £85.00 for the increase in VAT following the increase on 1st Jan. Is this correct? can they do this even though the deposit was paid before the VAT increase? Should they not have charged us for this at the time? Do we have to pay it? Can someone please help????:eek:

sofa-spud

williamsmd wrote: »

We purchased a new boiler from British Gas taking the 0% finance offer on the 30th December 2009 paying a deposit of 10% (Over £300.00). The boiler was installed on the 8th Jan 2010. We have today recieved a bill from British Gas for over £85.00 for the increase in VAT following the increase on 1st Jan. Is this correct? can they do this even though the deposit was paid before the VAT increase? Should they not have charged us for this at the time? Do we have to pay it? Can someone please help????:eek:

The rate of VAT charged is set by the date you are billed.
You should contact BG and complain as you bought the boiler on 30/12 so expect the bill to be dated then, not now.

kjsmith7

I'd phone them up and discuss it... I'm not exactly sure on the answer, I'm afraid. I presume because you had the boiler physically fitted AFTER the VAT increase then it will apply, but I'm no solicitor/gas engineer/etc. so I'd definitely give them a call to discuss!!

dogshome

Hi williamsmd - The rate of VAT that is applied is all about the date on the bill, not the time of installation.


The fact that BG have raised a seperate bill for the extra 2.5% VAT, says to me that your original paperwork dated 30th Dec on which you paid your deposit, was the bill, in which case the the VAT rate applicable was 15%, not 17.5%

Write to BG and complain
All the best

spiro

I suspect the the finance deal was done using the original cost (VAT at 15%) but because the invoice was raised after the VAT increase then they needed to invoice you for the extract VAT because it was not covered by the finance agreement.

kjsmith7

dogshome wrote: »

Hi williamsmd - The rate of VAT that is applied is all about the date on the bill, not the time of installation.


The fact that BG have raised a seperate bill for the extra 2.5% VAT, says to me that your original paperwork dated 30th Dec on which you paid your deposit, was the bill, in which case the the VAT rate applicable was 15%, not 17.5%

Write to BG and complain
All the best

If you do as dogshome always suggests, remember to write to the Servicing department, not the address on your gas/electricity bill. I'd trying phoning first for a quicker resolution, if no joy, then write.

WTTM

VAT is applicable on invoice date and not order date. You will pay 15% on deposit and 17.5% on remainder.

Not BG's fault - change in VAT rate was clearly advertised. Ignorance is not an excuse.


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