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VAT on Early exit fees

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ct9001
ct9001 Posts: 4 Newbie
edited 9 June 2019 at 10:23PM in Energy
Just got my monthly statement from utility point and it states that:

We have a cheaper tariff Just Up 19 Wk19 Direct and you
could save £99.76. Cancellation fees may apply, the tariff
may have different terms and conditions

I phoned them and they said that I could switch but I would have to pay them £30 for Gas and Electricity plus VAT. £75.50 Is that correct.

Comments

  • [Deleted User]
    [Deleted User] Posts: 1,655 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Well the maths are not correct but yes, you do pay VAT on exit fees at 20% (5% is only for fuel and standing charges).

    So £60 + 20% VAT = £72

    Utility Point show the exit fees on your statement without VAT so £30 per fuel then you have to add the VAT.
  • Robin9
    Robin9 Posts: 12,773 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    But does UP charge Exit Fees for an internal swop ?
    Never pay on an estimated bill. Always read and understand your bill
  • [Deleted User]
    [Deleted User] Posts: 1,655 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If you are on a fixed plan we may decide not to allow you to switch to another new fixed plan with us until your current agreement term ends, or we may charge you a fee to do so – for example, if after six months of your current one year fixed plan, we launch a new fixed plan that you want to switch to, then we can decide whether or not to allow you to switch to the new plan
    From the UP T&Cs section 3.4
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