Upgrade Fee has increased!

[Anonymous]

Hi everyone

Just wondered if anyone else has experienced this..

I've had my current contract for about 7 months and a couple of months ago I was thinking of doing an early upgrade and when looking on myo2 it was showing a fee of £407

I've just checked today and the upgrade fee is £486

Nothing has changed, my bills are never more than the £45 monthly charge, all paid by direct debit

Just wondered if this has happened to anyone else as I've contacted o2 and they can't tell me why

[MI5 · Accepted solution]

@Anonymous 

If you are on a standard contract from the likes of Carphone Warehouse, you now have to pay the VAT on the contract when you cancel.

Previously your payments would have equalled the number of months remaining less vat, but now, HMRC have directed that VAT must be paid.