Overcharged on O2/Carphone Warehouse contract - hidden VAT!?

18
Found 4th Oct 2014
Just got my bill through for a new contract and MYO2 states that I have £1.75 in phone calls (0800) which is fair enough, but then at the bottom it adds £7.30 on top of that as VAT...

So I am paying nearly £44 for a £33 contract??

Not once when I signed up for a contract did anyone say, in any of the chains I went in, the price is 'excluding VAT'. Not on any of my documents does it state, that this price is excluding VAT either.

I called O2, the guy was extremely unhelpful. First thing he said to me was, "is there any reason your payment is late this month?...", he was then realised he had no clue, then I explained I was unhappy being mislead, he then directed me to take it up Instore?

What can I do? Bet the shop assistant will not help at all..

I signed up for £33 a month, in Carphone Warehouse, on O2.

(EDIT - I have added an image of my contract)
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18 Comments
You'l be paying 35p VAT on the call and £39.60 for the monthly line rental. If you were not told that the VAT was excluded then you have a case if you were told then you don't, bear in mind that it will state that somewhere in your contract that VAT is added later and it may be on the label next to the phone in the shop.

I suspect you haven't read your contract properly (i am guilty of that too at times) as it will state under 'PAYMENT' (most likely) the break down of charges and you are now stuck with it for 24 months. However if it does not state anywhere how much they are going to charge you, how can they take any money off you?
Banned
To add to the above, your first bill is usually higher than the quoted monthly cost due to working it out pro-rata, but you'll need to discuss that with them.
Edited by: "dbhoy" 4th Oct 2014
Original Poster
mclovin9091

You'l be paying 35p VAT on the call and £39.60 for the monthly line … You'l be paying 35p VAT on the call and £39.60 for the monthly line rental. If you were not told that the VAT was excluded then you have a case if you were told then you don't, bear in mind that it will state that somewhere in your contract that VAT is added later and it may be on the label next to the phone in the shop.I suspect you haven't read your contract properly (i am guilty of that too at times) as it will state under 'PAYMENT' (most likely) the break down of charges and you are now stuck with it for 24 months. However if it does not state anywhere how much they are going to charge you, how can they take any money off you?



I have a contract they sent through to my email, and clearly states £33.00 'recurring price'.

I had a break down of charges for my inital handset price, which clearly shows to me, the handset price, without VAT, then the 20%, then the final market price.

Nothing on my Contract document. I will try and upload what I have to show how it looks but I am seeing nothing right now.

Spoke to my parents who are also on O2, they say their VAT is inclusive of the said price?... (They live 300 miles away so I cannot verify whether they're correct lol)

dbhoy

To add to the above, your first bill is usually higher than the quoted … To add to the above, your first bill is usually higher than the quoted monthly cost due to working it out pro-rata, but you'll need to discuss that with them.



Yeh I understand this part, it was up to £34.50 initally... But still...
Banned
If your in the cooling off period then cancel
Original Poster
leelee6781

If your in the cooling off period then cancel



If all companies are doing the same then I can't win, until I just don't have a phone? Unless you guys have had similar VAT break downs?
All retail prices have to be inclusive if vat.

It's likely to just be down to paying for a month and a week, as you'd have joined part way through a billing month.
Which would work out about right based on your figures 33 + (33÷4) + 1.75 = 43

Unless of course you signed up to a business contract, in which case vat is usually excluded from the advertised pricing
Edited by: "eset12345" 4th Oct 2014
Original Poster
eset12345

All retail prices have to be inclusive if vat. It's likely to just be … All retail prices have to be inclusive if vat. It's likely to just be down to paying for a month and a week, as you'd have joined part way through a billing month. Which would work out about right based on your figures 33 + (33÷4) + 1.75 = 43Unless of course you signed up to a business contract, in which case vat is usually excluded from the advertised pricing



Hmm is it possible I could have been placed on a Business contract by mistake? The woman at Carphone was a newbie she said.
darkstryder360

Hmm is it possible I could have been placed on a Business contract by … Hmm is it possible I could have been placed on a Business contract by mistake? The woman at Carphone was a newbie she said.



Possible, but unlikely, I don't believe the deal with business contracts in store, I though that was done separately with carphonewarehouse.

But saying that, I think you're just getting confused with the breakdown of your bill, compared to your contract being inclusive. Of vat or not.

Just because it shows vat separatel it ddoesn't mean the vat isn't included in the original price.

Look at the billing dates on your bill, usually there's a breakdown of charges.

Look carefully at the dates and what you're being billed for, often people think they are being over charged, or vat wasn't stated etc etc, when all it is is a month and a part month being billed, it just so happens that the usual part month of up to a week or so, works out roughly the same as the vat rate.
Original Poster
eset12345

Possible, but unlikely, I don't believe the deal with business contracts … Possible, but unlikely, I don't believe the deal with business contracts in store, I though that was done separately with carphonewarehouse. But saying that, I think you're just getting confused with the breakdown of your bill, compared to your contract being inclusive. Of vat or not. Just because it shows vat separatel it ddoesn't mean the vat isn't included in the original price. Look at the billing dates on your bill, usually there's a breakdown of charges. Look carefully at the dates and what you're being billed for, often people think they are being over charged, or vat wasn't stated etc etc, when all it is is a month and a part month being billed, it just so happens that the usual part month of up to a week or so, works out roughly the same as the vat rate.



I do remember her asking me about it being Business (or not), and obviously I said no to her but.. who knows?

I have uploaded my contract (with details erased) - this is all I have. Should there be a more indepth version?

http://i.imgur.com/YSUmvHh.png

Also, my MyO2 statement:

http://i.imgur.com/tuKB8Mk.jpg
Doesn't look like a business sale to me, no mention of the vat exclusive price, no mention of the usual business exclusions yada yada yada.

Have you recieved a full bill yet?

I think it is simply you being charged for a month and a part month
Still doesn't explain the VAT element?

I was having a google for you op, to see if I could find anything out for you, then I came across this lovely pic of Vorderman, now I can't remember the question.




http://i60.tinypic.com/2d2iuzp.jpg
Edited by: "Mark2111" 4th Oct 2014
hapless

Still doesn't explain the VAT element?


you pay vat on lots of stuff in the shops its just included and not broken down on the price tickets
agree looks like >month charge
Original Poster
Mark2111

I was having a google for you op, to see if I could find anything out for … I was having a google for you op, to see if I could find anything out for you, then I came across this lovely pic of Vorderman, now I can't remember the question.



This makes everything better


And Yeh I can imagine that's what it could be... Overcharging for the extra week or so...

But if I am wrong, I am out of my cooling period and will be tied in for the next 23 months! Sweeeet!
you will have a pro rata first bill that encompasses a few days service, then the month in advance. you Bill will show the line rental as 27.50 for a full month, then the vat goes on at the bottom to equal the 33. the extra bits may be the few days pro rata if you joined before the bill cycle set for you. there should be two sets of dates with individual charges.
Original Poster
mrahman136

you will have a pro rata first bill that encompasses a few days service, … you will have a pro rata first bill that encompasses a few days service, then the month in advance. you Bill will show the line rental as 27.50 for a full month, then the vat goes on at the bottom to equal the 33. the extra bits may be the few days pro rata if you joined before the bill cycle set for you. there should be two sets of dates with individual charges.



I only have the one bill payment, on MyO2 nothing else showing split bill.
Did you get this sorted? The same thing has just happened to me, £33 a month but they added £6 VAT!
darkstryder360

I only have the one bill payment, on MyO2 nothing else showing split … I only have the one bill payment, on MyO2 nothing else showing split bill.




if you log in on the O2 website, you'll see the full break down of your bill. O2 usually issue a bill within the first 4 days if you signing up which is a pro rata bill. this will always include the VAT. going on the O2 website will give you a full break down. if you're still unsure then go to an O2 store and they'll explain it better to you. this usually happens with 3rd party sellers. where correct or full information is not given. talking from experience
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