Toggle sidebar

British gas being incompetent...AGAIN

Sort by date Sort by votes
F

fathippy

Free Member
Jul 17, 2008
607
94
This is not the first time I have seen this problem, but it is the first time I have been responded to in this way!

The age old problem of the correct VAT rate has reared its head again with BG sending a bill for consumption entirely within December, yet has decided to bill at 17.5%. Previously when I have contacted suppliers with this issue they have apologised and re-sent the bill, but on this occasion, BG told me in no uncertain terms that "this was the way that THEY do business", also that "they cannot change their computer" and pretty much to go away as there was nothing I could do about it.

I am fairly happy that I am correct, so I have decided to cancel my direct debit and wait and see. I informed them of this, and the answer was "we will just send the debt collectors in then". This whole episode seems somewhat surreal, and I cannot understand why they are taking this attitude.

If anyone can point out where I have gone wrong I would appreciate it, in case it becomes a problem for me, otherwise I would advise everyone to check invoices closely, as I dont know whether the incorrect VAT may be recoverable, and anyhow there is no point in allowing these people to get away with it.
 
Unless I am mistaken, VAT is calculated at the tax point i.e. the day the bill was raised, not the when the service was provided.

I am sure an accounting bod will come and correct me, though!
 
Upvote 0
It does look like BG are being a bit naughty. I live in Spain and the energy companies are much more devious and mercenary though. One tactic is to do everyone's last bill of the year based on very low estimated readings and then slap everyone with New Year bills based on actual meter readings and new higher tariffs.
 
Upvote 0
Dont think that is correct, otherwise at the beginning of the "holiday" everyone would have delayed invoices for any goods/services until December 1st 2008 to benefit from the drop in VAT.

I think your point is commonplace with goods sold "over the counter" as the three elements (invoice, delivery and payment) often occur at the same time, however if you think about services over a period of time, then clearly it is impossible to bill daily, so there must be some factor of "when the service is delivered" to think about.
 
Upvote 0
To answer the first question, it is business consumption, so VAT at the higher rate.

Secondly, it is interesting on your link to HMRC that they frequently use the word "choose" suggesting that anything is ok as long as you can justify it.

This leaves me slightly open, as BG could turn round and say they have "chosen" to do so, but nevertheless I would still argue that something which is wholly within 2009, should not be rated at 17.5% in any scenario. This is definitely a stance taken by the majority of utility companies, where most have billed pre 1st Jan and post 1st Jan usage separately and applied different rates to each.
 
Upvote 0
If you would like to look at alternative suppliers then do pm me to see whether we can help. BG are certasinly more expensive at the moment and with the VAT increases that can mean big increases in business bills. If I cant offer you any savings I will let you know.:)

Best wishes

Avril
 
Upvote 0
You must log in or register to reply here.

Latest Articles

Top Bottom
Back