Will prices change with the VAT increase?

Chaoslava

Active Member
It'll really do my head in. At the moment Tesco is £349 for the phone, £20 a month, 12 month contract.

Will the price change in the new year when the VAT raises?
 

dc8900

Distinguished Member
depends if Tesco wish to absorb the VAT rise or not, as a starting point, Apple never absorb VAT rises so they will adjust their RRP accordingly; which may or may not have an effect on those selling the phone. To be on the safe side, I would get it while VAT is 17.5%
 

jerryq7777

Well-known Member
Or if you have the spare cash sim free from Apple £499 less 2% Quidco at the moment.Then bung in something like a giffgaff sim £10 a month.
Works out a little dearer but your choice of networks.
 

Chaoslava

Active Member
Hrm, total cost with Tesco - £589, total cost with giffgaff - £619, but do I get another phone or whatever after my contract is up? Doubt it..
 

Dazo

Novice Member
Hrm, total cost with Tesco - £589, total cost with giffgaff - £619, but do I get another phone or whatever after my contract is up? Doubt it..
You will however not be tied into a contract and will have a sim free phone to sell at any time.
 

New Start Neil

Distinguished Member
depends if Tesco wish to absorb the VAT rise or not, as a starting point, Apple never absorb VAT rises so they will adjust their RRP accordingly; which may or may not have an effect on those selling the phone. To be on the safe side, I would get it while VAT is 17.5%
Apple won't adjust the RRP of the phone.

The RRP is the RRP + VAT, which they can't do anything about.

As a simple example, if something was £117.50 inc VAT (£100 + VAT) pre Jan 1st, then it will be £120 inc VAT post Jan 1st.

Only items that are exempt from VAT (some foods, children's clothes etc) won't change in price.
 

marchudman

Active Member
All monthly bills, subject to vat, will go up in Jan.

If you are on a contract then it will mist likely go up.
 

Desmo

Distinguished Member
To be on the safe side, I would get it while VAT is 17.5%
No point in rushing in to it. It will change the phone price by about £7-8 and the monthly charge will just go up with the VAT change anyway so you're not going to save a great deal doing it now.
 

hybridtheory

Well-known Member
If you are on a contract then it will mist likely go up.
Hi

I've had my txt from o2 stating the VAT will go up on my tarrif in the new year.

Baz
 

RobM

Distinguished Member
I'm pretty certain Apple dropped the price of the iPhone when VAT dropped a while ago, so it stands to reason that the price will increase accordingly. I can't imagine Tesco or other big players being any different this time around.
 

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