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Expert
7,490 Views
Message 1 of 7

New Charges with 20% VAT am I going Mad? or am I wrong?

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I pay for Line Rental on the "Unlimited Weekend Plan" which used to cost £13.29/month inc VAT @17.5%

Therefore the Ex VAT Rate is £11.31

VAT has now increased to 20%, therefore the new rate including VAT should be £13.57.

But on my latest bill I have been charged £13.60/month

 

Also on Broadband "Option 1" my monthly charge was £14.99 inc VAT @17.5%

Therefore the Ex VAT figure is £12.76

VAT is now at 20% therefore the new charge should be £15.31/month

But my latest bill has a charge of £15.40/month

 

I admit these are small differences but a lot when you add up all BT Customers

Am I wrong?

If not how do I get BT to understand?

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Distinguished Sage
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Message 2 of 7

Re: New Charges with 20% VAT am I going Mad? or am I wrong?

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Due to the vat changes some charges have been rounded up some down this link may help http://www.productsandservices.bt.com/consumerProducts/displayCategory.do?categoryId=CON-BT-VAT-I
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Expert
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Message 3 of 7

Re: New Charges with 20% VAT am I going Mad? or am I wrong?

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Thanks, I understand, it's just that both of my spends seem to have been rounded up!

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Aspiring Expert
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Message 4 of 7

Re: New Charges with 20% VAT am I going Mad? or am I wrong?

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here is the place where prices are rounded DOWN.

 

ronin22Smiley Happy

 

 

 

In the end we will all be star dust.
Then start all over again.
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Beginner
6,797 Views
Message 5 of 7

Re: New Charges with 20% VAT am I going Mad? or am I wrong?

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BT's almost hidden price increases.

 

BT's explanation is on the Bill appendix under the heading "VAT increases to 20%":

"Price consistency

Amending VAT to 20% resulted in some inconsistent prices, so to keep things simple we've rounded down some prices and rounded up others. More prices have been rounded down than up."

 

Or, as I read it:

The VAT increase has given us an opportunity to slip in a few small additional price increases. We have not made these additional increases clear in advance because we can put them under the heading "VAT increases to 20%", because most people won't notice and few will bother to do the VAT increase calculation, but mainly because we can get away with it.  For anyone who looks for an explanation we've made it sound as though we are doing customers a favour by spouting some nonsense about "inconsistent prices" and "to keep things simple". Most customers will of course take our word that "most prices have been rounded down" so we haven't bothered to give examples.

 

"Inconsistent" - certainly inconsistent with the behaviour of a company that respects its customers.

"Simple" - how they view their customers.

 

We should be grateful that they have only "rounded up" by a few pence in each case and haven't made their prices even less "inconsistent" or even more "simple" by rounding up to the nearest £1!

 

Then there are the increases from 28 April: the 8.57% increase on the cost of UK landline calls and a further Broadband price increase. At least BT has made these clear in advance - no hiding these under VAT. But who gets away with 8.57% price increases in these times?

 

This recent behaviour is the final little straw for me, following several instances of shabby treatment by BT, particularly on Broadband out-of-contract pricing and service, so I'm making it even simpler by getting another provider.

 

 

 

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Recognised Expert
6,782 Views
Message 6 of 7

Re: New Charges with 20% VAT am I going Mad? or am I wrong?

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Who do you think is paying for BT Infinity and the 21CN rollout?

 

It certainly isnt the government...

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Recognised Expert
6,778 Views
Message 7 of 7

Re: New Charges with 20% VAT am I going Mad? or am I wrong?

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These upgrades don't cost a lot, OpenReach has only committed £2,500,000,000 for it. Drop in the ocean 😛
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