If you're VAT registered you're a business.

Offcom say that

If you are a business considering a residential tariff, check the terms and conditions carefully. Not all providers will allow you to use a residential tariff for business purposes.

so it sounds as if they don't have any problem with such policies.

It would, obviously, be different if the provider didn't make such a restriction clear before you purchased the product.

Curious. What business type requires an entertainment package as part of its business dealings? Don't have to go into specifics if you prefer; just a hint.

I'm guessing a business where it is also a residential address where the person wants to use a line for both business and pleasure. The alternative potentially is 2 lines - one for the business on an account where they allow business use and one for residential to do the rest. Of course if the business line is used a lot for residential then it becomes a little grey when it comes to things like tax right off as you should claim on the non-business usage - that would be tax evasion.

In reply to a post by TinyMongomery:

If you're VAT registered you're a business.

I'm VAT registered - 'me trading as ...'

In reply to a post by camieabz:

Curious. What business type requires an entertainment package as part of its business dealings? Don't have to go into specifics if you prefer; just a hint.

I'm VAT registered - 'me trading as ...' therefore I have some (VAT applicable) business transactions and some personal transactions. I should not need to duplicate services and products, rather I claim VAT on the appropriate proportion of the service that is used for business, i.e. mobile contracts, fuel etc.

So when it comes to broadband clearly the entertainment package element is not reclaimable in respect of VAT.

The summary is PlusNet only allow residential connections to be used for "incidental business use" such as occasional working from home - they specifically do not allow it for running a business and therefore whilst they should legally provide a VAT receipt they can also cancel your service as you are not using it under the Ts&Cs you agreed to when you took it out.

In reply to a post by ian72:

I'm guessing a business where it is also a residential address where the person wants to use a line for both business and pleasure. The alternative potentially is 2 lines - one for the business on an account where they allow business use and one for residential to do the rest. Of course if the business line is used a lot for residential then it becomes a little grey when it comes to things like tax right off as you should claim on the non-business usage - that would be tax evasion.

As per my last post it is normal to claim VAT on the appropriate proportion of the service that is used for business, same with mobile contracts, fuel etc.

The amount of money we are talking about here is not great though for me it's the principal, if you provide a VAT applicable product or service then you should also provide a VAT invoice upon request.

I signed up to PlusNet when there was no distinction between business and residential products, why should I be disadvantaged by having to accept a compromise?

I'd be fine with a business product and even happy to pay a little more if it is somehow better, though it offers no advantages so there is absolutely no point if it costs me more than I am able to reclaim.

And of course if I did take on the business product then I am still only able to claim a proportion of the VAT because part of the usage is residential.

In reply to a post by ian72:

The summary is PlusNet only allow residential connections to be used for "incidental business use" such as occasional working from home - they specifically do not allow it for running a business and therefore whilst they should legally provide a VAT receipt they can also cancel your service as you are not using it under the Ts&Cs you agreed to when you took it out.

As far as I recall when I took it out they did not have separate residential and business products.

The point is that it is quite legitimate to do some work at home plus social media, book holidays, online shopping and watch movies and you should not need have two different BB services to achieve this.

In reply to a post by 50pence:

The point is that it is quite legitimate to do some work at home plus social media, book holidays, online shopping and watch movies and you should not need have two different BB services to achieve this.

It may be legitimate, but it may be against a provider's terms and conditions. It is similar to pay TV for licensed premises who can't show televised sports events by subscribing to a residential TV package.

Also, if someone is claiming an internet subscription fee as a tax-deductible business expense and/or for VAT claim purposes and then also uses that internet connection for leisure purposes then HMRC could arguably claim that it can't be offset against tax / business expense.

However, if they are charging VAT then I thought they are required to provide a VAT breakdown along with VAT number.

Not an expert opinion by any means, probably needs an appropriately qualified professional's view.