UK VAT Changes

[Anonymous]

Hi All

The O2 terms and conditions say:

5.12 Unless otherwise stated, call prices are quoted by the minute and are charged in one second increments. Each call is charged excluding VAT and then rounded up to the nearest penny. VAT is then added where applicable to the total of all charges on your bill. Minimum call charges apply, see www.o2.co.uk for details of this and other charges. Prices are correct at time of going to print but are subject to change.

Does this mean from my December Bill, that I will see a reduction of 2.5% in my total bill charges, as VAT is now reduced to 15% from 17.5% from December 1st for 13 months.

That'll be a nice bonus for me

Shunts...

[Anonymous]

In theory, although the reduction wont be 2.5%.. it's closer to a 2% saving 😞

I have a feeling a lot of companies will just put up their ex-VAT pricing and add the small extra percentage to their bottom line ;).. maybe I'm a pessimist...

[darrengf]

In theory, although the reduction wont be 2.5%.. it's closer to a 2% saving 😞
I have a feeling a lot of companies will just put up their ex-VAT pricing and add the small extra percentage to their bottom line ;).. maybe I'm a pessimist...

I couldnt have said it any better.

To me i dont think it will make any difference.

It says we are going to save a 1p on a bar of choc. Well thats not going to make any difference to our vending machines here at work as they dont work with 1 and 2p's. so it will stay the same. Mmmm me thinks i wont be saving then :womanindifferent:

[Anonymous]

Yes but we have contractually agreed to a fixed tariff. If O2 change the tariff so that the total is the same after the new VAT then they will have voided your tie in and you will be allowed to cancel the contract early with no penalty.

This happened to 3, they altered their contracts and tariffs, you had an option of accepting the new tariff or cancelling, which many customers did and walked straight out and got a new handset on a new customer deal.

[Anonymous]

I don't know why you're bothering to get excited, what you save will go on the 2p extra on a litre of petrol, alcohol or cigarettes.

Everyone's a loser.

[darrengf]

Its a complete logistical nightmare regarding the vat changes and would prob cost more to implement.

What a joke and according to the BBC website, this statement
The VAT cut from 17.5% to 15% comes into effect on 1 December for 13 months, although there is no requirement for shops to drop prices in line with the cut.

I want to see petrol, fuel and food products cut in price back to where they were not a vat cut. But now there is a 2p rise been placed onto petrol... work that one out

So whats the point in it all is what?

http://news.bbc.co.uk/1/hi/uk/7748353.stm

[Anonymous]

I'm more interested in the moral expierence.

If VAT is dropped 2.5% then that reduction however small should be passed on to me.

You cannot tell me with a totally computerised billing system that VAT rating cannot be altered.

If it were going up (as the BBC reported today) then I'd imagine that they could alter it overnight, and that would be passed on from Second one.

My point is, it is going down and it should be reflected in any bill be it phone, internet charges, landline bill etc, if its not, that just shows you the value of your custom to that company.

Shunts...

[Anonymous]

Yes but we have contractually agreed to a fixed tariff. If O2 change the tariff so that the total is the same after the new VAT then they will have voided your tie in and you will be allowed to cancel the contract early with no penalty.

All consumer contracts are quoted inclusive of VAT... therefore by this argument they CANNOT pass the discount to us as they'll have changed the price of your fixed tariff contract...

[Anonymous]

I worked in a company a few years ago when they moved from one VAT band to another, it took five months to sort it out. Companies found out about the VAT change the same time we did, so I would say even if they were really keen to drop the VAT (if..) it would take a while to implement.

Dealing with people on different bill dates is also a complication, as these huge billing machines aren't usually designed to change a rate half way through a billing period, so if you're bill is on about 17th each month, it would be a big struggle to change it so you got the lower rate from 01 December.

As most people have said, its only a few pence here or there, but I'm sure it will cost a fortune to put in!!

MM

[Anonymous]

All consumer contracts are quoted inclusive of VAT... therefore by this argument they CANNOT pass the discount to us as they'll have changed the price of your fixed tariff contract...

The prices are quoted inclusive of VAT, but on the bills the tariff and VAT are seperate. The total has been pre-calculated to be a nice round number after VAT.