simplymarko
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Joined: Nov 2008
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RE: VAT Hike & Call/Text Cost Increase
(10-01-2011 22:25 )elgar1uk Wrote: (10-01-2011 12:39 )george.chunni Wrote: When getting a premium rate number in the UK you can't specify the price. There are allocated ranges with specific price points set by Ofcom.
I think it's PhonepayPlus that sets the tariffs rather than Ofcom and according to the PhonepayPlus website it's "individual billing networks" that decide whether to pass the VAT increase on to the caller.
Remember it is not just the billing network that has an impact on your call cost, studio hire, equipment, refreshments, utilities will all have got up with 20% VAT so increased opertating budget needs to be accounted for in the overal cost of the delivered product
(This post was last modified: 10-01-2011 22:47 by simplymarko.)
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10-01-2011 22:46 |
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admin.
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RE: VAT Hike & Call/Text Cost Increase
(10-01-2011 22:46 )simplymarko Wrote: Remember it is not just the billing network that has an impact on your call cost, studio hire, equipment, refreshments, utilities will all have got up with 20% VAT so increased opertating budget needs to be accounted for in the overal cost of the delivered product
This is untrue. The babe channels do not have any extra costs because of the VAT increase. For simplymarko's information (and anyone else that is interested) VAT is designed to be a tax on the CONSUMER and it is NOT designed to be a tax on BUSINESS. The companies providing the UK Babe Channels are all VAT registered business and therefore simply reclaim any VAT they are charged. The increase in the VAT rate to 20% therefore has no effect on them, nor would an increase to 100%, as they would still simply claim the VAT back.
There are similar errors by simplymarko in posts 12 and 15 of this thread, where he states that babe channel profits will be hit by the VAT increase because "all of their operating costs will go up accordingly" (wrong) and that "the shows overheads will have risen because of the increase in VAT" (wrong). In fact the only businesses whose overheads or operating costs will have risen because of the VAT increase are non-VAT registered businesses, which are by definition much smaller businesses than any of those which operate babe channels.
For those who appreciate irony, in post 15 of this thread simplymarko asks another member "do you understand the concept of VAT and business?"
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13-01-2011 19:37 |
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simplymarko
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Posts: 1,436
Joined: Nov 2008
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RE: VAT Hike & Call/Text Cost Increase
So how is price per min going from £1.50 to £1.53 that different from something in the argos book for £3.99 now being £4.05 when you go in store today?
This is an increase that’s been known for sometime and the cost effect is minimal. Fair enough on the business lesson as my understanding is/was different however I don’t see how people are making a big deal over 3p on a non essential service.During this thread its been implied that this is greed on behalf of stations and at one point wages were bought into question when this is in my opinion not the case bigguy01 in my opinion has given the correct response to these suggestions
(This post was last modified: 13-01-2011 21:48 by simplymarko.)
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13-01-2011 21:44 |
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