Businesses could have been victim to early VAT rise
Phone companies may have tricked many liability insurance holders into paying the increased VAT charge of 20% before the change took place, it has been found.
Research by uSwitch.com has revealed that some of the major phone companies charged 20% VAT on December calls, text and data usage, which shouldn’t have taken affect until 04 January.
The line rental for December line rental has already been billed at a rate of 17.5% VAT as phone companies charge monthly line rental and call package fees in advance.
However, calls, texts and data usage that are outside of customers’ fixed allowance are billed for in the next bill where some companies have been lazy or just set their own rules.
Liability insurance holders are being urged to check their bills as it is likely this swindle may have been overlooked by many.
Ernest Doku, communications expert at uswitch.com, says:
“This is lazy billing and customers are bearing the brunt of it while the taxman is rubbing his hands with glee.”
“The post-VAT price rises that providers have introduced may not seem like much, but the incremental hikes on essential services like call waiting and voicemail can really add up.”
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