Possible First Utility Duel Fuel VAT Scam?

aidrenegade

I've just been doing some math while considering signing up to a fixed till Jan 2016 duel fuel tariff with First Utility (I'm already a dual fuel customer). First some info on the deal:
Fixed rates: electric - 13.875 per kwh vs current i save everyday rate of 16.240 per kwh. Gas stays the same at 3.833 per kwh. Standing charge jumps to 25.54p per day for both from 13.65p for electric and 14.70p for gas.

Comparing based on my last bill means it sound like a reasonable deal at present I think with all the saving on the electric bill despite the higher standing charge.

Now here's the VAT problem on my bill. VAT is listed at 5% when calculating the full payment at the end of my bill but when you look at the breakdown for both electric and gas both tariffs show slightly different rates, only about 4.74% taken off for electric and 4.77% for gas. The figure may be relatively small but it equaled about £4 on my last electric bill.

This probably goes unnoticed by most customers but probably makes lots for the utility company. Are other utility companies doing this? Please grab a calculator and do some quick math on your gas / electric breakdown if your bill shows VAT calculated at the end of your bill. Take both your gas / electric tariff's shown on your bill and multiply them by .95 to take off the 5% VAT. Are the figures the same as your breakdown sections on your bill?
I'm just curious, regardless of a possible VAT scam is this fixed tariff offer still a good deal?

tizerbelle

aidrenegade wrote: »

Please grab a calculator and do some quick math on your gas / electric breakdown if your bill shows VAT calculated at the end of your bill. Take both your gas / electric tariff's shown on your bill and multiply them by .95 to take off the 5% VAT. Are the figures the same as your breakdown sections on your bill?

Sorry but that's not how you back-calculate VAT. To deduct the 5% vat from a vat inclusive figure you need to divide by 1.05 so using a bill of £105 including VAT: = £105 / 1.05 = £100 so VAT = £105-£100=£5

Your way £105 *0.95 = £99.75 so VAT = £105-£99.75=£5.25

aidrenegade

tizerbelle wrote: »

Sorry but that's not how you back-calculate VAT. To deduct the 5% vat from a vat inclusive figure you need to divide by 1.05 so using a bill of £105 including VAT: = £105 / 1.05 = £100 so VAT = £105-£100=£5

Your way £105 *0.95 = £99.75 so VAT = £105-£99.75=£5.25

Thanks! Math was never my strong point. Checked against my bill & the bill is correct so no scam. Does the fixed deal offered look good? I tried a money supermarket comparison search yesterday but results didn't show the actual tariffs.