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Every one who has a mobile contract - unfair charges!!!

8SID
8SID Posts: 22 Forumite
tariffs inclusive of VAT.

however if you go a penny over your tariff then why do they charge you VAT again on not just the amont you have gone over by BUT the whole lot including line rental????

This is surely unfair charges and some what illegal??

Cany one clarify, before i take legal steps.:cool:

Comments

  • Quentin
    Quentin Posts: 40,405 Forumite
    Don't think you are right.

    Maybe you can post an example of 2 bills (one without the extra VAT) so that we can understand better.
  • 8SID
    8SID Posts: 22 Forumite
    NO probs..........

    my monthly line rental is £29.79
    if i stay within my text and call then the aboce is what i get charged.

    however if i go above my usage then i get charged VAT, not only on the part that i have gone over by but including the line rental.

    so last month i got had:
    line rental: £29.79
    i went over my calls, and that cost £2.77
    which comes to £32.56 before tax
    but this time VAT on top at £5.69!!!!
    grand total £38.25


    Does that make thing clearer?
  • Quentin
    Quentin Posts: 40,405 Forumite
    Your prices are all excluding VAT.

    Your line rental including VAT is £35

    So when you paid £38.25 that included £3.25 of calls not included in your £35 package.
  • agsnu
    agsnu Posts: 1,457 Forumite
    Uh, £29.79+VAT is £35, so I'm going to assume that you're on a £35 a month tariff rather than a "£29.79 a month" tariff. You will be charged VAT on your line rental whether you go over your bundled allowance or not...
  • teeb
    teeb Posts: 392 Forumite
    8SID wrote: »
    NO probs..........

    my monthly line rental is £29.79
    if i stay within my text and call then the aboce is what i get charged.

    however if i go above my usage then i get charged VAT, not only on the part that i have gone over by but including the line rental.

    so last month i got had:
    line rental: £29.79
    i went over my calls, and that cost £2.77
    which comes to £32.56 before tax
    but this time VAT on top at £5.69!!!!
    grand total £38.25


    Does that make thing clearer?

    Er, as I understand it contract forms break down like this :

    There's a headline charge (Say £25 a month, for argument's sake) that appears on the manufacturer's website.

    So if you only use inclusive minutes and texts, your total bill is £25 - and this breaks down into 'service plan' and 'VAT' - or it does on my Orange bill. This works out as £21.28 service plan and then there's a VAT of £3.72 - which rounds it up to £25 exactly.

    However, say you make another £5 of phone calls outwith your allowance. Then the phone company has to charge VAT on that £5 (which would be, uh, 87.5p).

    What I'm saying is that your £5,69 isn't just VAT on your £2.77 of calls. It's your normal service plan VAT and also some VAT from the £2.77, too.

    How much is your monthly plan for, out of interest?
  • alnsv1000s
    alnsv1000s Posts: 407 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    The line rental is £29.79 + vat.

    I'f a call charge is 20p per minute that equates to 17.02p + vat.

    I do not understand what the problem is with your bill. If you look closely you will see it is broken down to the ex vat price. Then has the subtotal, the VAT and then the total.
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