Is Three Overcharging me on VAT?

edam

I checked my three bill the other day. Normally I don't, I just let the Direct Debit deal with it. It always comes over my contractual amount - £34.00 per month - because in my line of self employment I inevitably have to make 0800/0845 calls, so bills of £40.00 are expected and I never question them.

However, when I checked, it all seemed a bit odd.

It had a little disclaimer saying "VAT has increased from 17.5% to 20% (ok, fine, no problems there) and this will apply to anything you buy that falls outside of your inclusive allowance"

Ok....that's fair enough, I guess. So anything I spend over £34.00 gets VAT added.

BUT. Looking at my bill, if I spend say £6.00 over my inclusive allowance, I'll be charged 20% of £40.00 (the total bill) and not just 20% of the £6.00 overspend.

So where my bill should be £34.00 + £6.00 + VAT of £1.20 totalling £41.20, it actually comes out as £34.00 + £6.00 + VAT of £8.00 totalling £48.00.

That's not right, is it? Looks like they've done it on all of my bills....

sparky93

monthly cost + extras + overspends + misc(paper bill etc) + vat

edam

Sorry I don't understand. Yes, that's a calculation...but my question is are they charging VAT twice? It certainly looks like it on the calculations. The monthly contract price should be VAT inclusive and should therefore have VAT added on top...

grumbler

What does your contract say about the monthly price and when have the contract started?

smartphone

edam - is it a business or consumer contract? Usually business contracts have VAT excluded of the advertised monthly price, whereas consumer has VAT included.

edam

It's always been a consumer contract, but I use my phone for business and personal. The contract is certainly consumer and therefore to quoted price should be VAT inclusive (I don't have a copy, unfortunately....I don't think it's ever possible to find one in this day and age)

I entered into a contract a few years ago and in November 2011 I upgraded to The One Plan with a new phone. When I took up the contract, on the phone, the guy said it would be for £34.00 per month.

thegoodman

Have you checked with the 3?
What was the response?
If you have not I think it's better to check with them first and see what the response is from them?
What do you think?

grumbler

edam wrote: »

... in November 2011 I upgraded to The One Plan with a new phone. When I took up the contract, on the phone, the guy said it would be for £34.00 per month.

If the 'guy' said 34, then the VAT had to be included.

It's probably not too late yet to make them listening to the record of the call and to put the things right. The price before VAT has to be £28.33

Buzby

VAT ius always included - it isn't in business advertising - but is included in consumer because firms can reclaim VAT, consumers cannot. You will not have been charged twice.

thegoodman

grumbler wrote: »

If the 'guy' said 34, then the VAT had to be included.

It's probably not too late yet to make them listening to the record of the call and to put the things right. The price before VAT has to be £28.33

You try to make it look like you know everything but dont.
Most business prices do not include VAT, prices shown are plus VAT. The OP may have been given plus VAT if he had gone for business mobile. Check the wholesale website or visit any warehouse for business and you will know what I mean.

grumbler

thegoodman wrote: »

You try to make it look like you know everything but dont.

No, I just read the posts thoroughly.

Most business prices do not include VAT, prices shown are plus VAT. The OP may have been given plus VAT if he had gone for business mobile.

edam wrote: »

It's always been a consumer contract, .... The contract is certainly consumer

thegoodman wrote: »

Check the wholesale website or visit any warehouse for business and you will know what I mean.

Do you still insist?

If the OP was sold a business contract without knowing this, then they were clearly missold.