Broadband ISPs introduce VAT cuts

Broadband customers are to benefit from the temporary VAT reduction introduced this week by the government.

The reduction of 2.5 per cent, from 17.5 per cent to 15 per cent, means that customers could get a reduction of 50p off a £20 monthly broadband subscription.

So far two internet service providers (ISPs) have passed on the VAT cuts to customers. BT and Plusnet will both introduce the reduction from December 1 2008 until the end of 2009.

Both BT and PlusNet said that all customers will benefit from the change to VAT, even where customers have paid in advance of 1 December.

Michael Phillips, product director of BroadbandChoices.co.uk, welcomed the decision by the two ISPs and called for others to follow their lead.

"Whilst the saving will not be substantial, they have taken a fair stance and if other telecom/utility providers also pass on the VAT cut those small savings will add up over the year," Phillips said.

Phillips said that those ISPs that do not pass on the VAT cut to customers should use the extra income to invest in delivering improved broadband to their customers.

"For example, giving customers a more generous usage cap, connection speeds that match the advertised speed level and a general improvement in customer services would all be worthwhile investments for any broadband provider," Phillips added.

Michael Phillips will be joining Web User for a live web chat next Friday 5 December at 1230pm.

www.productsandservices.bt.com
http://community.plus.net
www.broadbandchoices.co.uk


Save up to £16 a year this Christmas when you subscribe to Web User!