Orange broadband still charging the old VAT rate! - HotUKDeals
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Orange broadband still charging the old VAT rate!

Benjimoron Avatar
7y, 11m agoPosted 7 years, 11 months ago
Just noticed that Orange broadband haven't passed on the rate change. Phoned them and they confirmed that they're still charging the old VAT rate and haven't decided what they're doing about it yet. They tried to fob me off with several excuses such as:

We don't charge VAT. They later changed their minds.

We have a special arrangement with the government to change it when we feel like it.

The notice only applies to mobile broadband (when it's on the home broadband page).


I told them that they can't charge the old VAT rate anymore, I can understand if they'd put their prices up (although not sure they can do that without my confirmation in a contract period) but I spoke to 2 managers who confirmed that they're still charging the old rate.

Reported to trading standards who agreed with me that they're breaking the law.

If you're on Orange broadband then give them some stick!
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Benjimoron Avatar
7y, 11m agoPosted 7 years, 11 months ago
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#1
Glad to see you're still sticking it to Orange, Ben!
Nice one!
#2
where customers are used to seeing only the VAT-inclusive price, it would be relatively easy for you to keep your prices at the same level as they were before the VAT reduction, meaning an extra 2.5 per cent of profit added straight to your bottom line.

This is not what the Chancellor intended but it is perfectly legal and, in these difficult times, is likely to be a course of action taken by many businesses.

:pirate:

full link here : http://www.realbusiness.co.uk/news/business-education/5481261/do-i-have-to-pass-on-the-vat-cut-to-my-customers.thtml :thinking:
#3
businesses dont have to cut prices as the VAT rate is cut they can just keep the extra 2.5%.
but that is mostly for high street retailers.

with orange broadband you are paying a fixed amount which is stated in your contract, they should not be keeping that 2.5%, im gona complain to trading standards and phone them up as well.

thinking to move to o2 broadband
#4
wanderer
where customers are used to seeing only the VAT-inclusive price, it would be relatively easy for you to keep your prices at the same level as they were before the VAT reduction, meaning an extra 2.5 per cent of profit added straight to your bottom line.

This is not what the Chancellor intended but it is perfectly legal and, in these difficult times, is likely to be a course of action taken by many businesses.

:pirate:

full link here : http://www.realbusiness.co.uk/news/business-education/5481261/do-i-have-to-pass-on-the-vat-cut-to-my-customers.thtml :thinking:


Totally agree, but since I'm in a contract they're effectively putting the price up, TS seemed to agree with me on that but I'm not 100% sure on the legalities of those things. Maybe they're ok as the price hasn't gone up, just the ex vat price.

Was expecting Orange to say that they've reduced the vat and increased the prices but 2 managers were very clear that they haven't changed the vat rate, maybe they just didn't really know what they were talking about (especially with some of their excuses!).

I was just really annoyed with their attitude of we'll do it when we feel like because we're special. The lady I spoke to had a go at me for asking for the rate to be reduced now, I didn't think I was out of order seeing as they should have done it 39 days ago now!
[mod]#5
Bet they apply the next new rate when it jumps up.
#6
grim_reaper
businesses dont have to cut prices as the VAT rate is cut they can just keep the extra 2.5%.
but that is mostly for high street retailers.

with orange broadband you are paying a fixed amount which is stated in your contract, they should not be keeping that 2.5%, im gona complain to trading standards and phone them up as well.

thinking to move to o2 broadband


I've got o2 broadand, the orange broadband in my parents'.

o2 broadband are the only company I have dealt with that in my eyes have been near perfect. Free technical support etc, best price on the market.
#7
Syzable
Bet they apply the next new rate when it jumps up.


You're not wrong there buddy!
#8
O2 all the way ... we dumped orange then ukonline very happy with O2 fastest up speed than most getting 1.2meg up most are 512kb or 768kb up .. super for gaming..
O2 kept us updated all the way even txt on the morning saying box coming and it did .. router is ok not great on range but ok in the house and most of garden .. which is fine for us no freeloaders :P if they get past wep
and the router auto firewalls 360 and torrent sites ..happy
#9
How have they put there price up.If your contract is for say £30 then you are still paying £30,If your contract was say £25 plus vat then they have put there price up.
#10
Syzable
Bet they apply the next new rate when it jumps up.


No they wont because the contract includes the vat,If you are paying £30 inc vat then even if vat goes up to 50% you are still contracted to £30 inc vat
#11
tonyg1962
How have they put there price up.If your contract is for say £30 then you are still paying £30,If your contract was say £25 plus vat then they have put there price up.


Read my post again, I said they're probably ok as I pay an included VAT price.

Remember that the managers confirmed that they are still charging 17.5%, I expect they don't have a clue but they said they've not dropped the rate of VAT (even though they legally have to).

Just annoyed at their attitude.
#12
I look at it differently ,i took out a contract three years ago with Orange and was given unlimited broadband for £5 a month,Now even though there broadband prices have gone up they still keep existing customers at the price they agreed when they signed , to me this is a good thing and if you agreed £30 a month and they are still charging £30 a month i wouldnt complain,
#13
tonyg1962
I look at it differently ,i took out a contract three years ago with Orange and was given unlimited broadband for £5 a month,Now even though there broadband prices have gone up they still keep existing customers at the price they agreed when they signed , to me this is a good thing and if you agreed £30 a month and they are still charging £30 a month i wouldnt complain,


I felt it was necessary to complain as they've refused to drop the rate of VAT, if what the managers say is true then they're breaking the law.
#14
i wouldnt mind if small businesses need to keep the 2.5% profit since i think they need it more due to rising costs and stuff.
But these big companies have likely no excuse to not pass on the 2.5%. I don't necessarily mean a 2.5% drop but at least some sort of discount.
#15
Orange actually sent me an email at the beginning of December saying they'd pass on the VAT cut in January. January's bill has been and gone and I was still charged the old amount.

I called them this morning and got an appalling line to India where I was told that they were having some technical problems implementing the cut and it would now be in effect from the 1st of Feb. I asked if it would be backdated to the date when they told me it would be in effect (1/1) or the date it was meant to take effect (1/12) and was told that it wasn't, but they'd be donating the 2.5% to Unicef!

I just couldn't persuade the lady I was speaking to that:

1) If they said they were passing the rate on, they really should do what they were saying and if they were having problems they should let me know - on my bill or in an email. Her reply is that the IVR system told me they were having problems (that's the phone system I only ever had to use because they hadn't told me what was going on)

2) That it really wasn't up to them to donate my 2.5% to Unicef when they should be passing it on to me as they said they would.

There was no point arguing bearing in mind it was a struggle to hear her and she was just reading from a script anyway so I'll be writing them a letter instead. Might look into how to contact Trading Standards too.
#16
SoozyJ22
...


Welcome to hukd and thanks for the information.

Totally out of order if as you say they give that money to a charity on my behalf, I have absolutely no problem in supporting charitys however that is at my own choice and I should receive the thankyou for donating if there is one. They will likely say that Orange have donated £1million or something and it'll make Orange look good, when in fact they've just robbed that money off their customers. They told me that they will backdate until 1/12 when they decide how they're going to do it, so they're going to be paying me the whole amount back! Or they're gonna regret it!!

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