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Charged for leaving Sim Only rolling month contract

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  • d123
    d123 Posts: 8,747 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    grumbler wrote: »
    Urban myth. Some providers do 1/6 discount, some (IIRC, including Three) don't.

    All charge some *fee*, and it's not your business whether they pay VAT to HMRC on this amount or not.

    Agreed, it's an early termination fee that happens to be worked out as the months x the price plan (sometimes with a discount applied).

    If the customer is unhappy with the amount charged then they can stick to the contract and don't pay the early termination fee.

    It's not an issue for the customer how the fee is taxed (or not), that's for the accountants at the network.
    ====
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