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Cessation Charge inc VAT

Spider
Grafter
Posts: 1,100
Registered: ‎05-04-2007

Cessation Charge inc VAT

After receiving an email today advising that due to change in VAT I will be paying lesson I followed the link to the portal page. This showed my new monthly amount but it also showed the Cessation charge of £20. On Following the link to the help page it says £20 (inc VAT). So has the Cessation charge gone up?
6 REPLIES 6
bobpullen
Community Gaffer
Community Gaffer
Posts: 16,869
Thanks: 4,950
Fixes: 315
Registered: ‎04-04-2007

Re: Cessation Charge inc VAT

Not sure about this one as I haven't had much involvement with the VAT stuff but I'll try and find out for you...

Bob Pullen
Plusnet Product Team
If I've been helpful then please give thanks ⤵

James
Grafter
Posts: 21,036
Thanks: 5
Registered: ‎04-04-2007

Re: Cessation Charge inc VAT

Hi there,
Deferred charges (hardware, activation and cessation) are remaining at the same price (inc. VAT), however, the headline prices on our existing products have been reduced by more than 2.5%.  So whilst the pre VAT costs of the deferred items have changed, the pre-VAT cost of broadband on Broadband Your Way has decreased.
Spider
Grafter
Posts: 1,100
Registered: ‎05-04-2007

Re: Cessation Charge inc VAT

OK, a question. How can a cessation charge be already deferred as it only applies when / if you decide to give up your broadband connection?
That also seems like a long winded way of saying the VAT included price remains the same so the nett charge as gone up!
pierre_pierre
Grafter
Posts: 19,757
Thanks: 3
Registered: ‎30-07-2007

Re: Cessation Charge inc VAT

you dont pay a deferred item unless you break the condition, and at that point the relevant vat will be due
James
Grafter
Posts: 21,036
Thanks: 5
Registered: ‎04-04-2007

Re: Cessation Charge inc VAT

Quote from: Spider
OK, a question. How can a cessation charge be already deferred as it only applies when / if you decide to give up your broadband connection?
That also seems like a long winded way of saying the VAT included price remains the same so the nett charge as gone up!

It's down as a deferred charge with no ending date as that was the easiest way for us to implement it.  It does not mean that everyone is charged it when they leave Plusnet.  Only when a line is ceased.
Yes, you're right.  Net price on the cessation charge has gone up, however the net price on our existing products has gone down.
Spider
Grafter
Posts: 1,100
Registered: ‎05-04-2007

Re: Cessation Charge inc VAT

Thanks for the clearer answer. That is another VAT question taken care of :).