1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. We recommend you enable 2FA on your OcUK forum account. Please see the thread here
    Dismiss Notice

Cancellation of contracts etc - general question

Discussion in 'General Discussion' started by malef!c, 27 Aug 2010.

  1. malef!c

    Wise Guy

    Joined: 27 Jun 2006

    Posts: 1,473

    Afternoon all - just a quick question whilst thinking about the VAT rise next January.

    For example, if I took out a 2 year phone contract for £30.00 a month and the provider adds the extra 2.5% on next January, is that a change in the contract - I took out a 2 year contract for £30.00, not £30.75.

    Yes I know its pennies in it but this is just a hypothetical question and a phone contract is just one off the top of my head. It also takes into consideration that the provider passes on the extra 2.5% to the customer (which to be honest I think most places will!)

    I am guessing the answer is no, its not a change but as I have a week off, my brain had 5 minutes to wander off on its own :)
  2. k3vst3r


    Joined: 26 Jan 2009

    Posts: 121

    Usually in contracts you sign the T&C's usually states any price hikes an such we shall notify you of 28 days in advance an they reserve right alter the price an such.
  3. ps3ud0


    Joined: 27 Sep 2004

    Posts: 27,590

    Location: Luton ;)

    IMO no chance in hell you will be able to cancel a contract due to a government imposed tax rise. The company themselves are still providing the product/service at the same ex-VAT price so havent made any changes essentially to the contract - its not their fault that the relevant taxes/duties levied have changed...

    When VAT reduced to 15%, did you not notice that your bills reduced for the same effect?

    ps3ud0 :cool:
  4. Mr Jack


    Joined: 19 May 2004

    Posts: 23,820

    Location: Nordfriesland, Germany

    You didn't take a contract for £30.00/month, you just think you did. You actually took out one for £26.09/month + VAT.

    VAT changes will not invalidate any contracts.
  5. malef!c

    Wise Guy

    Joined: 27 Jun 2006

    Posts: 1,473

    Ooo good answer Mr Jack, can see that one being used by companies.....didn't think for one minute that it would be a get out clause of any contracts but like I said, 5 minutes rest for my brain usually results in stupid questions :)
  6. wozza2k

    Wise Guy

    Joined: 23 Sep 2008

    Posts: 2,293

    Location: London

    You never know the company may absorb the tax hike....
  7. Deadbeat


    Joined: 26 May 2009

    Posts: 5,415

  8. PhillyDee


    Joined: 12 Feb 2007

    Posts: 14,114

    Location: South Shields


    Best laugh ever!