Which ISPs Increased VAT?

Orange didn't increase my subs this month due to the VAT increase.

Out of interest, which ISPs did increase prices of existing contracts as a result of the VAT change?

I know AOL did, by far more than the statutory amount.

Edited by XRaySpeX (Sun 23-Jan-11 04:12:24)

I'm on BE unlimited and the price was increased by 38p so not a huge dent in the finances at all.

I'm on O2 LLU and my broadband bill has only gone up 27p !

In reply to a post by XRaySpeX:

I know AOL did, by far more than the statutory amount.

How can they charge more than 20% VAT ???

I think it's inferred that they've used the vat increase to hike the price. Like quite a few of the major retailers have done.

retailers love price points so it's hardly surprising if the price doesn't go up precisely 2.127659574 %

the answer to the OP is that they all increased VAT, but some may have reduced their ex VAT price

In reply to a post by yarwell:

the answer to the OP is that they all increased VAT, but some may have reduced their ex VAT price

Close, but no banana.

No ISPs increased VAT. The government did. Which ISPs passed the rise on to the customer is the question.

Some ISP's lowered their prices when VAT dropped to 15%, some did not, so there is a lot of history checking that needs to be made to see if an ISP is hiding another raise in the current VAT changes.

All ISPs will have increased the proportion of their retail charge that is VAT

In reply to a post by yarwell:

All ISPs will have increased the proportion of their retail charge that is VAT

From 0.149% to 0.167%?

But that wasn't the question.

It ISP's increased the VAT they have to. Some will not have passed it on. It may well depend on how and when they usually review their pricing. It may well be cheaper to just increase the price once rather than twice

From 0.149% to 0.167%

no, 100 times that !

Ack !

In reply to a post by yarwell:

All ISPs will have increased the proportion of their retail charge that is VAT

Yes, to the Revenue as they have to, But I'm asking about to the Customer.

In reply to a post by XRaySpeX:

In reply to a post by yarwell:

All ISPs will have increased the proportion of their retail charge that is VAT

Yes, to the Revenue as they have to, But I'm asking about to the Customer.

?
Yarwell's statement is self-evidently correct. Don't forget we are down a side bit of fun, starting with my pointing out that no ISPs increased VAT.

Your question really is which ones passed the VAT increase on to the consumer, as I also said earlier.

"passed it on" isn't really the right way to look at VAT, which is a tax on value added. One might pass on a cost increase from a supplier, but a VAT increase is an increase in the tax applied to your product and ultimately on your value added. You reclaim the VAT on your inputs, so you don't really get to pass that bit on either.

Maybe the question should be "which companies decided to add less value in the face of a VAT rate change"

and yes, it's just a bit of fun.

Entanet did. All managed billing resellers anyway.

dim.

In reply to a post by krazykizza:

dim.

Enigmatic and completely meaningless. You seem to be excellent at it. Perhaps being meaningless comes easily to you.

In reply to a post by yarwell:

Maybe the question should be "which companies decided to add less value in the face of a VAT rate change"

Too incomprehensible to the Man on the Clapham Omnibus!

My original Q "which ISPs did increase prices of existing contracts as a result of the VAT change?" is much clearer and straightforward.

Interesting question, caused me to make the effort and check with the old calculator.

Just checked my latest bill and yes, Post Office have increased VAT to 20%
but no, not sneaked in any other charges,
Broadband, Line rental, main call charges and connection charge unchanged apart from the VAT increase.

the latest bill also carries this statement:

Also... just to remind you VAT has now increased to 20%
On January 4th 2011 the government increased VAT to 20%. All bills generated from this date have therefore been calculated using the new rate.

Orange's accounts state:

Please note that from 1st January 2010 VAT will be charged at 17.5%

and they have kept to it

Well that is funny, long may it continue

i was half expecting Post Office to perhaps make a similar slip or at least be a few months late, but this time they were REALLY on the ball . . . funny that

Three did too.. but they also added a little bit on too but 5GB mobile broadband on a rolling month contract for £7.88 isn't really an issue

Matt

Picking at how the OP phrases a question is just as fruitless.

Dare I say troll like

In reply to a post by krazykizza:

Picking at how the OP phrases a question is just as fruitless.

With that you demonstrate an absence of a sense of humour .

Dare I say troll like

Well you just did.

An independent investigation comparing your trolling and irrelevant post record to mine might prevent you from doings so again. Your last couple of weeks seem to have been devoted to insulting various posters.

THree increased out of bundle prices by >100% for new customers. http://www.lovemoney.com/news/get-the-best-deal/mobi...

Mobile operator, Three, is one of the worst offenders. For new customers who go outside their monthly allowance, they will now be charged 30p per minute for calls � up from 12p per minute � and 30p per text, also up from 12p per text. That�s a whopping 150% increase!

Ian

Ouch, thankfully I only have mobile broadband with them

Matt

AAISP is increasing VAT charges as of February 2011, as well as increasing cost of usage units for BT and BE lines.

My Eclipse invoices are dated 1st of the month. This month it was £16.98 + £2.97 VAT (@ 17.5%) = £19.95. As the overall price is now £20.50 I expect my next invoice to be £17.08 + £3.42 VAT (@20%).

So the price before VAT has gone up 10 pence, i.e. 0.6%. Yes, I'm well aware that without the 10p increase the total cost would have been 12 pence less at £20.38.

Given the reliability and service I get, I have no problems with that.

Don't you pay your subs in advance? Mine are.

Indeed I do, but the invoice date was 1st January, before VAT went up.

I'm 'guessing the £20.50 total as that's the current 'new customer' price. Maybe it will stay as it is for existing customers so I'll actually pay £20.38. To be honest I haven't really thought about it as the difference is so marginal.

However thinking about it now, if the price was going up for reasons other than VAT, Eclipse would probably let me know in advance rather than leave it to the invoice, We'll see.

In reply to a post by cheshire_man:

Indeed I do, but the invoice date was 1st January, before VAT went up.

Good point! I'd forgotten that. I was invoiced on 21st.

Just received my new invoice. £20.38 inc.VAT, so the pre-VAT price hasn't changed.

Eclipse have however taken the opportunity to increase the price to £20.50 inc.VAT for new customers.

In reply to a post by XRaySpeX:

Orange didn't increase my subs this month due to the VAT increase.

Out of interest, which ISPs did increase prices of existing contracts as a result of the VAT change?

I know AOL did, by far more than the statutory amount.

O2 for me went up from £7.50 to £7.66

Just calling you out for what you are.

Truth hurts sometimes doesn't it?

In reply to a post by krazykizza:

Just calling you out for what you are.

You seem to have recently made something of a habit of "calling people out" for what they appear to be to you, and it's becoming tedious.

You are entitled to your own opinions of course, but keep them to yourself.

I suggest you desist from such posts while you still have the choice.

Orange has formally confirmed that they have frozen the VAT at 17.5 % until April (or for the more pedantic who see this as diddling HMRC, they have absorbed the VAT increase).

The great thing is, unlike BT, Virgin, Sky, TalkTalk, O2 and Plusnet, we�re the only broadband provider doing this. Think of it as a big Orange welcome into the new year.