MSE News: Virgin Media uses VAT rise to retrospectively hike phone prices

j44hea

Same thing has just happened to me with British Gas!! supply date was 30/9/10 to 31/12/10 Its just plain WRONG!! We provide our customers with services too and any service before the 4th Jan was invoiced later than the 4th @ 17.5%. Its also about fairness!

glider3560

j44hea wrote: »

Same thing has just happened to me with British Gas!! supply date was 30/9/10 to 31/12/10 Its just plain WRONG!! We provide our customers with services too and any service before the 4th Jan was invoiced later than the 4th @ 17.5%. Its also about fairness!

What did they bill you for? Gas and electricity is charged at 5% VAT.

corbyboy

j44hea wrote: »

Same thing has just happened to me with British Gas!! supply date was 30/9/10 to 31/12/10 Its just plain WRONG!! We provide our customers with services too and any service before the 4th Jan was invoiced later than the 4th @ 17.5%. Its also about fairness!

You need to check this. Gas has a VAT rate of 5% and that wasn't affected by the rise on 4 January.

j44hea

It was an electricity bill from British gas, it has always been invoiced at the current vat rate, dont tell me this has been wrong too? could it be that this is for business??

corbyboy

j44hea wrote: »

It was an electricity bill from British gas, it has always been invoiced at the current vat rate, dont tell me this has been wrong too? could it be that this is for business??

Yes, that would be the reason.

Zippyfan

Interesting point which has not been raised previously - Virgin Media were able to apply the 17.5% VAT rate to a movie purchased on 12 December 2010 and then 20% VAT on a movie purchased on 7 January 2011 which is correct. However, my phone charges for 24th December have been charged at 20%. I don't think that we should let this one go.

How can Virgin Media justify the 20% VAT on calls made before 4th January 2011 when they are able to use the 17.5% VAT rate for other services provided before the VAT increase?

corbyboy

Zippyfan wrote: »

Interesting point which has not been raised previously - Virgin Media were able to apply the 17.5% VAT rate to a movie purchased on 12 December 2010 and then 20% VAT on a movie purchased on 7 January 2011 which is correct. However, my phone charges for 24th December have been charged at 20%. I don't think that we should let this one go.

How can Virgin Media justify the 20% VAT on calls made before 4th January 2011 when they are able to use the 17.5% VAT rate for other services provided before the VAT increase?

They did it because it's easier.

If you have a problem with how it was done you need to tell HMRC. Virgin Media are only following the rules set by them.

liam8282

Zippyfan wrote: »

Interesting point which has not been raised previously - Virgin Media were able to apply the 17.5% VAT rate to a movie purchased on 12 December 2010 and then 20% VAT on a movie purchased on 7 January 2011 which is correct. However, my phone charges for 24th December have been charged at 20%. I don't think that we should let this one go.

How can Virgin Media justify the 20% VAT on calls made before 4th January 2011 when they are able to use the 17.5% VAT rate for other services provided before the VAT increase?

Ring up Virgin and complain about your 3p difference in VAT.

You never know, you could get a gesture of goodwill 10p credited to your account for your inconvinience.

On the other hand, they could direct you to the HMRC website were the full details of the VAT change and the implemntation of it, are readily available. You would then see for yourself that they are doing everything by the book, just in the way which is easiest for them.

This really is a non story now, and MSE should come out and explain it properly to the people that have been misled on this site.

yotlane

Hi all
Started another thread until I found this.

Just got my bill from virgin media to find my itemised phone bill element charged at 20% VAT from 14th December. I know the amount is small, but how dare they! Phoned them via 150 and got an initial operator who said that there was nothing she could do and said I need to make a complaint via the web. Before she could put the phone down on me I said I wanted to cancel my contract and to put me in touch with someone who could deal with this. Waited 20mins to be put through but hey they are paying for this! Spoke to another operator and said not happy and that I wanted to move. Tied in but she did give me £1.00 refund on my bill to accommodate the VAT.

I don't think virgin should be allowed to get away with this and would urge any other customers to do the same. They know they are wrong but think of the size of money they will be getting on each individual account.

I will still consider moving in 5 months time or haggling, either way Virgin have lost my business in the future.

Thanks for taking the time to read this.

glider3560

yotlane wrote: »

They know they are wrong but think of the size of money they will be getting on each individual account.

Virgin are not wrong, they are just applying HMRC's rules. In addition, they make no money out of this as ALL the VAT is passed onto HMRC.