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cleo165
Aspiring Contributor
340 Views
Message 11 of 18

Re: BT Call charges are not as they seem! Don't believe me? Then read on...

OK Answered

Its the data that confuses being advertised as what seems as a fixed rate.

 

BT calculate call charge excluding VAT @ 15.0ppm and 19.17 connection fee.

Totalling 34.17p

Rounding up to 35.0p

VAT applied is 7.0p

Total charge 42.0p

 

Have asked for them to consider advertising charges exclusive of VAT for consumers to be able to calculate correctly as they do not outline what is a base charge (exc. VAT) and what is rounded up.  Otherwise they should advertise the connection fee after rounding up (19.7p rounded up to 20p, plus 4p vat +24.0p) The confusion is adding the connection fee to the call charge and then rounding up together. This is why core charges should be advertised on the tariff excluding VAT. How can you (easily) calculate  whether your bill is correct with this madness? As far as i see it, it is no more than to hide extra cash from customers - nothing more, nothing less.

 They are taking me seriously and i shall report back soon.

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cleo165
Aspiring Contributor
320 Views
Message 12 of 18

Re: BT Call charges are not as they seem! Don't believe me? Then read on...

Another question i ponder on is:
Is it legal to apply a rounding up to a figure THEN applying VAT therefore making us pay more tax than what would be required to cover just the initial base charge itself. We can safely assume that the connection fee outlined in the Tariff Terms has not been rounded up (to 20.0p exc.VAT) and it is already inclusive of VAT. The application of VAT is the last phase of charge calculation so are we paying more VAT than what is possible to calculate with just the data in our bills, the tariff terms and other docs in the public domain?

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Distinguished Expert
Distinguished Expert
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Message 13 of 18

Re: BT Call charges are not as they seem! Don't believe me? Then read on


@cleo165 wrote:

Another question i ponder on is:
Is it legal to apply a rounding up to a figure THEN applying VAT therefore making us pay more tax than what would be required to cover just the initial base charge itself. We can safely assume that the connection fee outlined in the Tariff Terms has not been rounded up (to 20.0p exc.VAT) and it is already inclusive of VAT. The application of VAT is the last phase of charge calculation so are we paying more VAT than what is possible to calculate with just the data in our bills, the tariff terms and other docs in the public domain?


Perhaps you should wait for a response.....

It’s a rounding up issue, which is common in accountancy. If you look to decimal places in the sums, then it’s clear. There are set rules and standards as to the number of decimal places to work to: that’s for the accountant to apply.

In terms of volume, you, as the consumer are not affected, other than paying a few pennies.

As a company, BT, or other companies, may be dealing in millions, but as a percentage, the error is still minute.

Hence the careful statement to the customer re. rounding up to the next penny.

cleo165
Aspiring Contributor
294 Views
Message 14 of 18

Re: BT Call charges are not as they seem! Don't believe me? Then read on

I understand that fully, its the data advertised that i have a problem with.
The setup fee, advertised at 23.0p inc VAT, should be, in my view, rounded up to 24.0p following the formula used.
(19.17p >20.0p + 4.0p VAT)
The only time this would be correct at 23.0p is where a call charge excluding VAT would have a decimal lower than 0.83 and when combined charges are rounded up, then then it would calculate correctly. However, no call charges excluding VAT do have a decimal according to BTs Tariff. So the need for charges to be advertised ex-VAT are greater - that or the simple task of changing the setup fee advertised to the minimal charge possible - which is 24.0p
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cleo165
Aspiring Contributor
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Message 15 of 18

Re: BT Call charges are not as they seem! Don't believe me? Then read on

OK, well i have many agreements from advisors at BT with the information as it is given, however, BT have now entered into a deadlock situation allowing me to bring this to the attention of OfCOM. (Bit late BT)

Have also spoken to the Ombudsman about this situation and they state, alongside my first response from OfCom, that if my report is correct then this can have serious implications on BTs current business with its line subscribers.

I may add that BT have slipped up again with correspondence, asking me to call a 01173 number within 14 days to speak about my complaint, and after 3 recorded calls per day for the last 11 days i still recieve an answerphone message noting the return of the agent on the 22nd November (over a week earlier) The problem is if i did not get in touch they would assume that the case has been resolved. This letter also suggests speaking to the ombudsman  

(well if you read the notes BT you should be able to see that the ombudsman and OfCom have both notified you that i have an ongoing report lodged with them waiting for your response)

Watch this space - it may just rock the world like it did last time  - they were taken into litigation!

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cleo165
Aspiring Contributor
209 Views
Message 16 of 18

Re: BT Call charges are not as they seem! Don't believe me? Then read on

OfCOM Report Done!!!!!

 

 Edited by Mod

 

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Distinguished Guru
193 Views
Message 17 of 18

Re: BT Call charges are not as they seem! Don't believe me? Then read on


@cleo165wrote:

OfCOM Report Done!!!!!

 

 

OfCom.PNG


Please alter your post to remove the phone number

cleo165
Aspiring Contributor
167 Views
Message 18 of 18

Re: BT Call charges are not as they seem! Don't believe me? Then read on

HERE IT IS LESS THE PERSONAL DETAILS, THANKS GUYS.....

OfCom (2).PNG

 

 

 

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