VAT

[Anonymous]

Back in the old days the cost of the phone was included in your tarif and you paid VAT on all of it. Now that the phone is seperated from the tarif with a "fixed sum loan agreement" are you paying vat on the cost fo the phone? I can't find any reference to VAT on the agreement. Whilst this makes no difference to me, is it yet another example of big business managing to restructure things to avoid paying tax? 

[MI5]

VAT is part of the overall cost of the phone you are purchasing but you are paying a credit agreement (loan) which is not subject to VAT.

[Anonymous]

This is exactly my point. When the phone was included in the contract VAT was paid, now it isn't. All the phone companies seem to be restucturing things like this now with these credit agreements,which must be reducing the VAT paid to HMRC by a large amount. Is this a deliberate tax avoidance way of doing things to allow the phone co's to make yet more profit and avoid paying tax ( allbeit in a legal way) ?

[MI5]

No, of course not.
VAT still has to be paid at source.