British Gas confused about £50 credit when tariff changed

TomsMom

I'm with British Gas for gas and electricity and when my Websaver 11 tariff came to an end last year I changed to Online Engergy with them, with an offer of £50 credit to my account after a certain period of time.

I've just seen my latest statement online (I pay by DD) and the credit is showing up as £47.50.

I rang British Gas and asked why it was £47.50 and not £50 and was told it's because of the VAT. When I queried why my original emails said £50 would be credited, when really it should have said £47.50, all I got was a repeat of "it's because of the VAT".

Anyone else had this? Should they really have honoured the £50 they quoted or should the consumer assume that VAT would be deducted?

I have a Halifax Reward account which states they reward you with £5 per month if you pay in £1,000 p.m. At the end of the year the statement shows what they've paid you. For the year it says £72.00 then shows you the tax deduction of £12, so £60 net which is the £5 per month they stated. By that token, is British Gas being a bit dishonest by not stating that VAT will be deducted?

molerat

It should be £47.62 excl VAT so they are robbing you of 12p but in essence they are correct, £47.50(62) off of the net bill = £50 off of the gross bill, the final bill is still £50 less than you would have paid.

£100 - £47.50 = £52.5 + 5% = £55.12
£100 + 5% = £105 - £50 = £55

TomsMom

molerat wrote: »

It should be £47.62 excl VAT so they are robbing you of 12p but in essence they are correct, £47.50(62) off of the net bill = £50 off of the gross bill, the final bill is still £50 less than you would have paid.

£100 - £47.50 = £52.5 + 5% = £55.12
£100 + 5% = £105 - £50 = £55

Ah, OK, I get that, thanks. I just thought it was a bit sneaky saying you get £50 credit but the statement only shows £47.50. They could have explained the VAT bit .

bloss0m

Yes it happen to me last year I got same reasons

amcg100

What you have actually saved is £50 since what you would have paid to British Gas had you not had this credit is £47.50 + vat which is the £50 they promised you.
It seems odd - but it is right