You are not logged in to Prodigits. Please register or login.

Subject: VAT..
Replies: 14 Views: 1064

garion 5.12.08 - 04:39pm
By now many of you in the UK will have received a text from your service providers informing you that as a result of the two and a half percent VAT reduction, they'll give you extra credit on your next 10 pound top up. What's quite amusing is O2s inability to do basic maths, as they've offered me 22p on top of my tenner, whereas Orange have gone for the more accurate 25p.. * +

7ftdwarf 6.12.08 - 11:14am
what makes me laugh is its just enough to ring customer service and complain lol * +

ragnorak 6.12.08 - 12:31pm
But it's not meant to be 2.5 percent of 10 pounds, as VAT is an 'added' tax. That means it's calculated as the value without tax PLUS the tax amount equals the amount you pay. So the value of a 10 topup before was 8.51 plus 17.5 percent equals 9.999, but now it's 8.70 plus 15 percent equals 10 (a difference of 19p). This may be why 3 only see fit to give 18p extra. * +

ragnorak 6.12.08 - 01:15pm
So technically all the networks could get away with giving that amount (as the precise difference is actually a fraction less than 19p). But then you could argue, when you topped up 10 pounds before you didn't get 8.51 credit but a full 10 quid, meaning you had 1.49 extra. This could account for the additional 3p that O2 give above the 19p. * +

ragnorak 6.12.08 - 02:01pm
To put it another way, the above-mentioned bonus of 1.49 credit was 17.5 percent on top of 8.51, so now O2 are giving 17.5 extra on top of 8.70 instead. So it seems their calculation is the most precise one after all. * +

jonquil 6.12.08 - 02:38pm
My goodness their's always 1 lol. If your calculations right well done * +

garion 6.12.08 - 04:39pm
Yeah, that's what I meant - they can't do basic maths, they can do.. very very complex maths.. splendid exposition of the theory of VAT for us numpties @ragnorak, although as an ex-taxman I'm embarrassed.. * +

7ftdwarf 6.12.08 - 05:35pm
as an ex forklift driver i'm asleep lol * +

+ go to page 1-2
+ my page
+ functions
3 search
4 submit a reply
7 last page
+ bookmark
8 Mobile Web Forum
9 Forum Index

Custom Search