BT to pass on VAT cut in full to broadband customers

Michael Phillips, Product Director, said: "We are pleased to see that BT has taken the initiative to pass on the VAT cut to broadband customers and hope that other ISPs will follow their example. 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.

"Those ISPs who fail to follow BT's lead will hopefully use the extra income to invest in delivering an improved broadband experience 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."

What BT has said:

We will pass on to customers the benefit of the reduction in the rate of VAT

If customers have paid in advance for services we will make sure they won't be out of pocket so there is no need for people to recalculate their own bills, for more information please go to bt.com/vat

Current customers of BT Total Broadband, voice products and services or other subscription services

If you signed up before the reduced rate is introduced we will ensure that your future bills are adjusted so that you pay the reduced rate from when it is introduced or we will credit you through other means where appropriate.

What happens if I've got a bill now?

If the bill is dated before1 December 2008 and includes rental for a period beyond 1 December 2008, please pay this bill in full. We will make an adjustment to a subsequent bill or credit you through other means where appropriate. If the bill was produced after 1 December 2008 the new rate will already have been taken into account.