Leave contract early after all cashback received

Smi1er

I've had a few cashback deals from mobiles co uk, two of these contracts still have time to run and I do realise I'm tied to these charges, but also realise that if I leave early that although I'm charged the monthly cost until the end of the two years I don't have to pay the VAT.

Both contracts had five lots of cashback which I have now received, one contract has 4 months to run, the other 5 months.

One contract is with T-Mobile and I would want to keep the number, whereas the other contract is with Talk Mobile (who are owned by CPW, who also own mobilescouk) and I'm happy to let the number go.

Anyone else left a cashback contract early?

What's your experience in them asking for some additional money back? Or not allowing you to move the number?

Rusty!

The cashback is handled by a third party, and they wont even know about it.

Besides, to leave you have to pay up, so it's no skin off their nose if you wait 'til the end or leave now.

Buzby

The 'no VAT' is an urban myth. It based on a misconception, in that if the network agrees a waiver (due to non provision of bundled services) then that element is reduced which in turn will reduce the overall VAT paid. It does not zero the tax liability and if the network chooses not to provide a discount, the full amount remains payable.

By requesting your PAC, when this is ported the final bill is created and you are expected to pay it within the agreed period. If you do not, late payment markers follow.

For the other without a PAC you need to give notice of early termination and then settle the bill. But if you default on paying, your credit file is fried.

Or the sake of a couple of months (and they kept their side of the bargain) it makes sense if you do as there is a lot more at stake if it goes wrong.

grumbler

Smi1er wrote: »

..I.... realise that if I leave early that although I'm charged the monthly cost until the end of the two years I don't have to pay the VAT...

This depends on the network.

Buzby wrote: »

The 'no VAT' is an urban myth. It based on a misconception, in that if the network agrees a waiver (due to non provision of bundled services) then that element is reduced which in turn will reduce the overall VAT paid. It does not zero the tax liability and if the network chooses not to provide a discount, the full amount remains payable.

So says our local expert in taxes. Incompetent idiots at some networks have a different opinion, don't charge VAT on the ETC and clearly say this in the final bills.

mobilejunkie

I'm in the same position. Not concerned about them claiming any cashback (back) - even though technically they might be able to. Never terminated early; but I HAVE downsized and so made extra profit since I don't need the minutes. Unlikely you'de be able to with these networks, but might be worth asking. For any (potential) VAT saving it's not worth ending early - you may as well have the bundle since you've had a good deal with the cashback.

The t&c have changed since your contract - now it's spread over the full 24 months with this dealer, so the issue won't arrive except with older contracts like ours.

secretmsg

I recently cancelled one of my t-mobile line and was charged £85.90 for remaining 4 months excluding vat which was exempt. It works for o2 as well..

http://tinypic.com/r/jztjiv/8

mobilejunkie

Strictly speaking the t&c say you must won't be paid if you cancel or dowbgrade etc. However, they aren't likely to ask for any back or sue. Would be difficult in any case, since at the points the cashback was paid you were in compliance with your contract with them. Otherwise, what would happen if you ended it after (say) three claims?

I wouldn't worry about it; they are so utterly incompetent that it's most unlikely they'll even notice. I do however stand by my previous comments; why bother cancelling for what you'd save (if anything) - just use the bundle until the end of the minimum term.

grumbler

secretmsg wrote: »

I recently cancelled one of my t-mobile line and was charged £85.90 for remaining 4 months excluding vat which was exempt. It works for o2 as well..

http://tinypic.com/r/jztjiv/8

I'll re-post it specially for Buzby...