VAT change @ Three UK

[delaro]

I was browsing three.co.uk and I've come across an article about VAT change. That doesn't seem to be right or is three going to put their prices up

According to three some of their broadband plans will be dearer more than 2.5%.

Mobile Broadband contract pricing from 4 January 2011
 
Price today   New price   Increase (including VAT at 20%)

Broadband Lite (18/24 months)   £10*   £10.49   £0.49
Broadband 5GB (1 month rolling/Call to Connect)   £15   £15.99   £0.99
Broadband 5GB (18/24 months)   £15   £15.99   £0.99
Broadband 15GB (24 months)   £15   £15.99   £0.99
Broadband 15GB (18 months)   £20   £20.99   £0.99
Out Of Bundle rates   £0.1   £0.102   VAT
 
* Available in some channels with a 25% discount, so £7.50 increases to £7.87.
 
MiFi contract pricing from 4 January 2011
 
    Price today   New price   Increase (including VAT at 20%)
Broadband Lite (18/24 months) + MiFi   £9.50   £9.91   £0.41
Broadband 5GB (1 month rolling/Call to Connect) + MiFi   £15 + upfront charge of £39.99 or £54.99*   £15.99 + upfront charge of £39.99 or £54.99*   £0.99
Broadband 5GB (18/24 months) + MiFi   £17   £18.03   £1.03
Out Of Bundle rates   £0.1   £0.102   VAT
 
*Includes first month's data
 
iPad contract pricing from 4 January 2011
 
    Price today   New price   Increase (including VAT at 20%)
Broadband 1GB 1 month rolling   £7.50   No Change   No Change
Broadband 10GB 1 month rolling   £15   No Change   No Change
Out Of Bundle rates   £0.1   £0.102   VAT

[mobaholic]

As far as I know, a VAT change does not count as a price increase in a tariff.  I expect *ALL* network prices to change in the new year.      

Three should be complimented in being 'on the ball' by announcing theirs in advance in my view.      

As for their figures, an increase from 17.5% to 20% is actually a 4.375 14.285% increase in VAT.      

[delaro]

As far as I know, a VAT change does not count as a price increase in a tariff.  I expect *ALL* network prices to change in the new year.      

Three should be complimented in being 'on the ball' by announcing theirs in advance in my view.      

As for their figures, an increase from 17.5% to 20% is actually a 4.375% increase in VAT.      

I'm not sure how you got that last sentence figure, so would you like to explain that please.

What I was trying to say is that for example a plan that costs now 20£ should cost approx £20.43 after VAT change not £20.99

[mobaholic]

I'm not sure how you got that last sentence figure, so would you like to explain that please.

What I was trying to say is that for example a plan that costs now 20£ should cost approx £20.43 after VAT change not £20.99

My initial figure given was incorrect.  I think someone had sabotaged the library PC calculator I was using.        

I have now corrected the figure above.      

A £20 tariff now is ~ £17.02 + ~ £2.98 VAT.        

From 1/1/2011 the figures should become £17.02 + £3.404 VAT, which will be rounded up to £3.41.      

So I agree that the total should rise from £20 to ( £17.02 + £3.41 ) = £20.43.      

I did not understand from your OP that '3' were raising their prices above the rise in VAT.
If that is the case, perhaps you should make it more explicit to be clear.