Monthly charge increases with VAT

lichung

I signed my contract with t-mobile last year and now they've increased the price due to the VAT change.

As I signed up for the contract before the VAT rise my contract should remain at the same VAT price am I right?

cgk1

No you are not right. Hope this helps.

Browntoa

no , the vat is set by the government , you are paying the same for your phone package but the rate of vat has been changed hence the increase

nsabournemouth

It will only be a matter of pence anyway.

Wintermute

The terms & conditions you agreed to will allow them to raise their prices in accordance to VAT, any other sort of taxation and interest rates. I know pennies make pounds, but I don't see why people kick up such a fuss over 50p or so a month.

Dave1964

I am having the same problem with BT. I have a fixed rate contract with them for 18 months that includes a 50 % discount. They have increased the price by 5.1% and they say they have had to do this due to government VAT regulations!
Not only have they ignored the so called FIXED RATE deal I signed up for, they have also calculated the increase on the post VAT value rather than the pre VAT value. If they have done this across the board it amounts to a 0.3% price increase on all charges without any warning.

NFH

You have to pay the increased VAT rate unless you signed a contract for a monthly price at a price specifically inclusive of the prevailing VAT rate. As far as I know, these don't exist.

However, one thing that the mobile networks could improve upon is invoices issued in January 2011 that cover services provided before 4th January 2011. According to HMRC guidelines (section 3.4.1), the mobile networks could, if they wanted to, save their customers the increased VAT on the portion of their bills for services provided before 4th January 2011. By choosing to charge VAT at 20% rather than 17.5% on services provided before 4th January 2011, the mobile networks are not gaining for themselves but they are costing customers more money and giving more money to HMRC.