Vat

GillianR

I've noticed that on my energy  bill ,Vat is being added to my monthly payments and not on my monthly usage.   So..... My electricity payment has gone up to £100 .  My usage is currently £50 per month.  Vat is being charged at 5% on the payment of £100, anyone else having this issue.  Thanks

Alnat1

Only heard of one company that uses that method, think it was Utility Warehouse. Strange way to add VAT, would they give it back if they refunded a credit?

pochase

What do you mean they are charging VAT on your payment. If your debit order £100 does that mean it should only be £95.23? If you add 5% VAT (£4.76) to £95.23 you get to the £100. 1p rounding errors.

What usually happens that you unit rate and standing charges will be calculated excluding VAT and VAT is added in the last step of your bill.

EssexHebridean

Ahhh - another UW customer then. 

Yep - of our £70 monthly DD £66.67 (from memory) shows as credited to the account - it's a pain and definitely makes me wonder if we come to leave the whether they will reverse-engineer the VAT back on again before refunding us!

Be warned as well - they are entirely incapable of dealing with manual payments - we made a payment back in October last year when we received a small credit from our previous supplier. Obviously I wanted to apply it straight to our energy account where in my mind it "belonged". Hadn't seen it appear by December so questioned - and was assured it was definitely there. Checked everything through in detail again a month or so back and found that nope, it definitely had never been applied. I'm now fighting to get them to do it, and going round in circles - they're driving me mad! Also infuriating that had I not picked them up on it presumably they would just have pocketed it!