Utility Warehouse double VAT?

Kilted_Aphrodite

Hi there, 
Any help would be great.  

I do not have a great mathematical mind nor am I an accountant. 

UW give me broken down bills when confirming how much direct debit they’re going to take from me.  

Please see my bill.

Firstly, I’m not a business so why am I being charged 20% for VAT?

Secondly, in the breakdown as you can see my broadband bill alone charges me £6.66 VAT and my phone charges me £3.33
= £9.99 in total VAT bringing my total for broadband up to £39.98 and my phone up to £20.00.

in the overall breakdown these amounts are after the original added VAT, the £20 and the £39.98 are then used to produce my overall bill and then a further 20% VAT is added on top on the overall bill which I thought already included the VAT. 

Am I being charged VAT on VAT or VAT twice? Is the percentage not too high for domestic use? Surely this can’t be right. 

CKhalvashi

Lets start at the beginning with some basic economics.

VAT has to be paid at a rate of 20% for most items. That many companies don't itemise it doesn't mean it doesn't have to be paid. Why do you think only businesses pay VAT? It is the end user who ultimately pays.

Lets move on to some basic maths:

£20.00 +
£39.98 (£59.98) +
£10.44 (£70.42) +
£08.00 = £78.42

The VAT is merely itemised, and neither the £8 late payment fee nor the insurance are subject to VAT, which has been worked out on £59.98, which dividing by 6 gives us the correct amount of £9.9967 meaning the VAT-exclusive amount is £49.99.

The bill is therefore correct.

Kilted_Aphrodite

Great thank you I really appreciate that.

I think the way it’s itemised and broken down is confusing.  Mentioning VAT twice through me 

CKhalvashi

Kilted_Aphrodite said:

Great thank you I really appreciate that.

I think the way it’s itemised and broken down is confusing.  Mentioning VAT twice through me 

No problem, occasionally running through the numbers in a simple manner can be helpful.

On a side note, I pay £15-ish/month for a SIM card with decent data allowance (currently with a £200-ish decent phone) and unlimited minutes/SMS, that broadband looks expensive too, so if you're out of contract, it may be worth shopping around to compare the whole market.

I pay about £18/month all in for broadband, which is fast enough for most things. Unless you have a big family with multiple decivices, you won't need the superfast part.

ann_droid

Hi
I would suggest a broadband comparison, not knowing the cashback details, your charges seem a little high.

Currently PlusNet have deal, Vodafone also a deal.

Get our cheapest ever fast fibre broadband

from £21.95per month*

Up to £60 Plusnet Reward Card** included

###############

VODAFONE Superfast 2

24-month Broadband Plan  VAT INCLUDED

Upfront    £0               Monthly   £24