New Invoice Changes

[#1]

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@SM_queries wrote:

just about all working adults use their personal home broadband for business emails/web searching

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That may well be the case but to what proportion? Using it as you say is the user's choice. If it's a requirement for work then the employer should pay for that, using a legitimate business service provision and either pay for it directly or have the user reclaim the cost back via expenses.

[#2]

Not at all impressed by the way Plusnet has handled this new billing system.  Some of the responses show what they really think of their customers.

Also it's interesting that BT seem to still give VAT invoices.

Can I get a VAT invoice or statement for my bills?

Can I get a VAT invoice or statement for my bills?

You can ask us for a VAT invoice, usually if your employer or company pays your bill. You must specify if this is a one-off request or if you need one for every bill.

To get a VAT invoice please call us on 0800 800 150.

Can I view my VAT statement online?

Once you've created your BT ID for My BT and added your accounts, you'll be able to access your VAT statement online as a PDF file. You then have the option of either printing or downloading it for your own records.

[#3]

MOOK - not sure why you want to argue the basis of account use - presumably you represent Plusnet ?

Irrespective whether you do or not, other commentators on this forum have pointed out what they see (and I do too for that matter) the lack of reasoning by Plusnet to deny the possibility of recovering VAT where appropriate. By stating on their invoice 'This is not a VAT invoice' and more importantly not displaying their VAT registration number, denies any possibility of VAT recovery.

So, one asks why take such an 'inflexible' step - the reasoning can only be to force some users to switch their accounts to Plusnet's business account. It certainly will have no bearing on usage, it's known that gamers and young children use more bandwidth than any other categories.

My Brother recently changed to EE and I asked to see his invoice - the bill showed " Total charges for this month including VAT: £££ " so no actual breakdown - but there on the top of the invoice was EE's VAT registration number (ie. Simplified format allowing VAT at standard rates to be recoverable).

This change by Plusnet is a great pity because they have been an honest and dependable supplier up to now.

[#4]

If a company/sole trader is vat registered they have to charge all their customers wheather they themselves are registered or not, so Plusnet charge vat to everyone. I thought they were obliged to provide a receipt which at least gives their vat number? The amount of vat is easily worked out,annoyingly but doable.

If the number the guy above has shown is plusnet's number I will use it and let customs and excise tell me off as and when.

It's stuff like this that makes customers leave, I will asap

[#5]

Well no @SM_queries I do not represent Plusnet, only myself; my posts are my opinions.

But as I see if you want to reclaim VAT then I and others can only assume that you are in business so you should by definition be using a business package. The level of the service and support provided should be better than the residential so reflected in the cost, but from that cost you will be able to legitimately reclaim your VAT.

Maybe the changes made by Plusnet have been put upon them by HMRC and others may follow soon. But even if this is a deliberate step (which I doubt) to encourage some users to move to their business package I see nothing wrong with that.

Of course if you or anyone else aren't happy you can always move supplier, EE maybe.

[#6]

I disagree, buying a tin opener from Tesco can be a business expense, no different to Plusnet. Should be up to the business if they want the better service or not, not Plusnet to dictate.

The vat number is for customs and excise to trace the likes of Bob the builder , they know about the big boys, all about the paper trail.

Fact: customs know Plusnet are redg and charge vat on the whole (no part is zero) 

Fact: customs know I am redg and am entitled to claim, end of.

It's  when you have a dodgy receipt from someone they have never heard of sets the alarm going. It's not complicated

[#7]

That's the great thing about the freedom of speech @arnold4 and as you disagree I have no issue with that in fact I actually agree with your comment. However, for myself if I needed to claim back the VAT I would feel obliged to use the business service for my own peace of mind, but as I don’t I use the residential service.

Not only would I get the 'correct' paperwork, I would in theory get a quicker service response in the event of issues and when running a business your ability to be online and remain online can be paramount.

[#8]

This is interesting - https://www.oneaccounting.co.uk/blog/what-proof-do-you-really-need-reclaim-vat

Purchases under £25 do not need VAT documents and (see tip 2) you only need to know the supplier is VAT registered

[#9]

I would happily pay for a business account if there was the option for one that is the same price and service as the current domestic contract I'm on. I only want a VAT invoice so I can claim back from my employer as a benefit in kind.

I operate well within Plusnets t&c's which allows minimal use when working from home/checking emails. I expect my work use only accounts for about 0.0001% of my data use.

I know some small companies who subscribe to a cheaper domestic service at their offices and this is designed to stop this but those companies can clearly see that the ex-vat cost is still more than the gross cost of a domestic connection. 

The fact that they will only offer a much more expensive contract for someone requiring a VAT invoice tells me they view businesses as a cash cow.  

There are many customers that will claim back home internet costs as a benefit in kind and now many companies will refuse to reimburse their employees without a valid VAT receipt - I expect they will move away from Plusnet

Some companies may allow the more expensive costs - but not many. Some will just pay the expenses and not claim the VAT.

I see the only winner here being the HMRC as the policy doesn't in my eyes seem to benefit anyone else - mainly people will put up with the loss until contract end and move.

This is something I've seen in other sectors - especially mobile phones where EE and Vodafone both charge more for exactly the same contract/phone/data if you want a VAT receipt as they force you onto a business contract.

I'm sure there is a executive somewhere expecting a big fat bonus for thinking up and implementing this policy in expectation of increased revenue for Plusnet. I wouldn't hold your breath waiting for a policy change that same exec will have a year or 2 to see if it works.

[#10]

Sorry @acnescar, but if your work use really is that low (0.0001%) then don’t you think claiming back the VAT is over excessive, dare I even say greedy?

[#11]

Nope - We all stream Netflix at 4k - I'm sure a few emails and some web access account for that much compared to the families use. Its more about gratitude from my employer about being prepared to look and answer emails outside of work hours and as I said is a benefit in kind.

Moderator's note by Dick (Strat): Full quote of preceding post removed as per Forum rules.

[#12]

Agree completely.

And to add  insult to injury Plusnet have added the wording "This is not a VAT invoice" to the invoice

[#13]

I expect my work use only accounts for about 0.0001% of my data use.

and that's just completely destroyed the argument of VAT invoices for residential accounts!. For a business to legitimately reclaim the VAT on a service used for both private and business use it must apportion the use to private and business and is only entitled to reclaim the VAT on the business proportion of the bill.  Therefore with the stated business use above, it's not worth the business reclaiming the VAT.

[#14]

I would disagree with your interpretation. My contract of employment and thus renumeration is 100% cost to business so all VAT is reclaimable on that. Your interpretation sounds more akin to a VAT registered sole trader. 

Moderator's note by Dick (Strat): Full quote of preceding post removed as per Forum rules.

[#15]

What has streaming Netflix at 4K got to do with it, I’m confused!

Fair enough as regards the benefit in kind but surely you do not need a VAT receipt to do that. If you then give that to your employer who then reclaims the VAT on it then would it not be easier for them to pay for it? Why should you do the job of their accountant!