Why is my Phone Bill so High?

[Emma211]

Hi,

I upgraded my phone last month on a £35 a month contract. My bill for this month is £43, the additional £8 being VAT added on top which I have never had before. Why have the contract advertised as £35 if you are then going to actually charge £43? 

[MI5 · Accepted solution]

@Emma211 

Everyone pays VAT unfortunately.

The breakdown of your bill with the VAT element is shown in your MyO2.

You first bill after an upgrade can include pro rata charges relating to your previous contract.

This looks like something you’ll be able to do or check in the My O2 app. We have a guide to help with that if you’re unsure how to use it Guide: How-to guide for My O2 And don’t worry if you get stuck because there’s an in-app messaging service you can use to chat with O2 who can help. Just go to the ‘Support’ tab and ‘Start a Conversation’ at the bottom.

If you still need help then the Social Media teams will be on hand, just send them a message on Facebook (https://o2uk.co/O2CFB) , Twitter (https://o2uk.co/O2CTW) or Instagram (https://o2uk.co/O2CIG)

Thanks

[Emma211]

I am aware I have to pay the VAT charges, but all of my other contracts with 02 this has been included in the monthly price advertised, not an additional cost on top. 

I was advised at the point of upgrading there would be no pro-rata charges as I had done it in time. On by bill the additional cost is just listed as VAT. 

[Cleoriff]

Hi @Emma211 

Don't worry. This is probably pro-rata payment from previous month. All should be normal next month.

You’ll get your first bill within four days of joining O2, and you’ll be charged 14 days after you receive it. Your official billing date is usually the date you joined us, and it will be the same every month.

If you joined us on the 29th, 30th or 31st of the month, your official billing date will be the 1st of the following month. Your first bill will be pro rata, which means that we’ll charge you for one full month’s airtime, as well as any airtime you use in those first few days before your billing cycle starts.

If you’ve upgraded your device, your billing date will stay the same.

Your next bill will be pro rata and might include a charge from your old tariff or Airtime Plan. If you're on O2 Refresh we split your bill in two, so you’ll see two payments each month:

1. Device Plan - the cost of your phone or tablet
2. Airtime Plan - the monthly cost of your data, minutes and texts

Both payments will come out of your account on the same day.

If you've signed up to a non-refresh contract, you’ll see one payment each month.

The best way to keep an eye on your bill is to use My O2. You can see what you’ve been charged for, when to pay and how to pay. You can download the My O2 app for free. Text MYO2APP to 2020.

If you joined O2 or upgraded your device after 23 January 2014, your bill will be adjusted every April by the Retail Price Index (RPI) rate of inflation announced in February. On O2 Refresh, your Device Plan payments are not subject to inflation and remain at 0% interest.

https://www.o2.co.uk/help/account-and-billing/your-bill 

[MI5]

@Emma211 

The only way VAT is additional on top of the advertised price is if you have taken a business contract.

If you need more help than we can give you here, ie access to your account, you should contact O2 as I advised above.

Best wishes.