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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: 27,648

    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: 24,941

    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!