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half price line rental (by redemption) - VAT question
peace flaps
26-02-2008
looking at some offers on the net, and just thought i'd check this...


should you pay VAT on the whole line rental (say £30)
even if the you're only supposed to be paying £15 line rental?
LibertyBell7
26-02-2008
DON'T DO IT. Every week there are stories of these dealers going out of business (phones2udirect being the latest). It really is best to deal with the networks direct.
bluechang
26-02-2008
likewise with the poster above - don't do the cashback redemption EXCEPT if you are doing it with CPW. But even then, they make you jump through hoops to get your money back. Really, the regulators should ban the cashback practice and just offer the discount directly on the monthly payment.
coopermanyorks
27-02-2008
Originally Posted by bluechang:
“likewise with the poster above - don't do the cashback redemption EXCEPT if you are doing it with CPW. But even then, they make you jump through hoops to get your money back. Really, the regulators should ban the cashback practice and just offer the discount directly on the monthly payment.”


Personally I would only do it through DAP as I have had quite a few successful and problem free redemptions from them

I and many thousands lost out with Just3G.co.uk in Brum , I lost the equiv of £30 x 12 = £360

But I reckon the question your really asking is should you pay vat @ 17.5% on the reduced monthly fee of £15 or the full monthly bill of £30

Does it really matter if you are not Vat registered ?
peace flaps
27-02-2008
well yeah, that was the question (but looking into these redemption deals, its not as promising as it first sounded lol)


i have no idea about tax matters etc., but, if i was buying an item in a shop at half price, i assumed i would only pay VAT on the amount paid. mainly an idle question as i doubt they would change their ways on this policy even if they are out of order.




still considering a cashback deal, as i'm on a crazy 'paying off credit cards' scheme and this looked to be like free money to throw at the debt. seems that you are ok as long as you're on the ball when applying for your redemption.
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