being charged vat on bill.

[Anonymous]

hi there,

jsut received my first bill after i switched tariffs. - i switched on my billing day to ensure smooth transition and no additional charges for different periods

what i dont understand is that my tariff is included vat.

firstly my tariff seems higher. ie should be 22.00 inclu vat.

they seem to be charging me for what ive used + in advance

and then also whole bill is being vated. and doesnt add up.

ie 18.34 tariff

then 3.17 additional charges

vat on this at 20%

so bill should come to £25.31 but it actually comes to £30.99

very confused by it all.

can anyone help.

o2 chat was not helpful and left me frustrated.

O2 simplicity 300 12 month	02 Mar 13 -  01 Apr 13	-9.03
O2 600 24 month	02 Mar 13 -  01 Apr 13	18.34
O2 600 24 month	02 Apr 13 -  01 May 13	18.34
Total tariff		£27.65

[Anonymous · Accepted solution]

Hi,

Unfortunately, switching your bill on your billing day means that the change will go through the next day. Had you called and asked for the change to go through the day before your billing date, then it would all be okay.

So the day you called, a bill had been produced on the old tariff for 30 days advance line rental.

Therefore, the next day, when the tariff changes, O2 will give you back 29 days for the old tariff. It will then charge you 29 days for the new tariff. This will all show on the next bill (29 days later) as well as your next month on the new tariff.

So say, for convenience sake, we say your tariff (including VAT) is £30 per month. And say you want to go up to a tariff at £60. If you move the day after your billing date, as you did, it will show like this.

Bill 1:

£30 - 2nd of March to 1st of April.

Bill 2:

-£29 - 2nd of March to 1st of April

£58 - 2nd of March to 1st of April

£60 - 2nd of April to 1st of May

I hope that makes a little sense. The VAT part is irrelevant, you will always have VAT added at the end of a bill - but I know it can make trying to work stuff out confusing.

For the 3 amounts of money you posted, if we add VAT that will be:

£9.03 = £10.84

£10.84 = £22.01

£27.65 = £33.18