topic Increased VAT in Plusnet Feedback

Increased VAT

PNnewbie — Tue, 05 Jan 2010 18:09:13 GMT

If I'm posting in the wrong place - my apologies...
I recently got an email from PlusNet informing me that from 1st January 2010 VAT will increase from 15% back to 17.5%. with the corresponding increase in my monthly bill. I'm on BBYW Option 2.
Now I pay for my daughter's broadband who is on PlusNet Value. She also had an email stating " We're pleased to advise that we won't be passing the VAT increase on to you for your broadband service".
Now I'm sure this has been asked before (I did look...) but can anyone tell me why one package is subject to increased VAT whilst another is not?
John

Re: Increased VAT

pierre_pierre — Tue, 05 Jan 2010 19:07:34 GMT

thats a good question, its probably that it would take the market 3 Value over £5.99

Re: Increased VAT

dvorak — Tue, 05 Jan 2010 19:41:48 GMT

I think it boils down to if you have a current package - Pro / Value / Premium - that you don't have any cost increase, discontinued packages do.

Re: Increased VAT

PNnewbie — Tue, 05 Jan 2010 19:45:47 GMT

My daughter's account is a new one so she'll be on the ~£10 Value package - the cheaper one is not available via our local Exchange.
Can't remember but I think it's ~£5 for the first 3 months then ~£10 afterwards - maybe that has some bearing on the VAT issue...
Emails from PN do say:-
From January we'll have one standard set of terms and conditions for all our services, which will make it much simpler for anyone checking their agreement.
As it only amounts to pennies it's fairly irrelevant, I was just curious...
Thanks Pierre_Pierre

Re: Increased VAT

jelv — Tue, 05 Jan 2010 20:26:38 GMT

The old packages were decreased in price when the VAT went down - they are now being put back to the original prices.
The new packages were introduced while VAT was at the lower level. Plusnet must have priced them taking in to account the scheduled VAT increase - hence the VAT increase being absorbed.

Re: Increased VAT

PNnewbie — Tue, 05 Jan 2010 20:41:53 GMT

pierre_pierre/jelv/adiewoo thanks for your inputs.
jelv - that sounds right. My old BBYW Option 2 is merely being returned to it's original price whilst the newer Value package must have been priced with the VAT increase in mind.
Thanks again

Re: Increased VAT

pierre_pierre — Wed, 06 Jan 2010 09:14:51 GMT

not sure as I am on Value, but I think Pro an Premi have both gone up, only Value stayed the same

Re: Increased VAT

dvorak — Wed, 06 Jan 2010 09:18:19 GMT

Nope they have remained the same too

Re: Increased VAT

Chris — Wed, 06 Jan 2010 09:19:15 GMT

The products we currently sell stayed at the same price as shown on the website. Legacy products increased back to the levels before the VAT reduction.

Re: Increased VAT

dvorak — Wed, 06 Jan 2010 09:34:09 GMT

Except for unlimited which didn't exist before the vat reduction, so that just went up
edit: removed value as it is still a current package.

Re: Increased VAT

jelv — Wed, 06 Jan 2010 09:41:31 GMT

I thought the price of those was unchanged.

Re: Increased VAT

pjmarsh — Wed, 06 Jan 2010 09:42:45 GMT

Unlimited has had the increase, but value hasn't.
Phil

Re: Increased VAT

alanf — Tue, 19 Jan 2010 10:54:01 GMT

edit: Post removed. Added to incorrect thread.

Re: Increased VAT

Zap — Sat, 23 Jan 2010 15:22:45 GMT

Talking of VAT, I got the most convoluted bill from BT (Plusnet parent), they basically broke down every service into a daily rate and credited me then recharged me VAT from Jan 1.
Plusnet just increased my bill from the first Invoice in 2010 which will be on 27/1, so thanks Plusnet.
Don't know why BT has to be so penny pinching, they do not get the money, I suppose they make a lot of interest on all those pennies for a quarter.