After Monday's VAT changes will prices drop?

[allancoblue]

Didn't know where to post this really as it concerns all areas of Sky's products.
So can we expect a small drop in our charges from next week onwards as we pay VAT on all aspects of our bills, or will Sky not pass on the savings?

[indefatigable]

is it worth it? i mean, most shops aren't going to reduce their prices, they're just taking a bigger profit from each item. I know that sounds bad, but is it really in the interests of any company to lower their prices by what may be no more that £1 a month depending on the package, and at the very lowest, you'd save 40p a month. It doesnt seem worth it tbh

[allancoblue]

It might not be worth it to us as individuals (though I'd be happy with any price drop), but this surely goes against the governments reason for doing it in the first place?
The saved money is after all meant to be staying in our pockets for us to spend our way out of the current economic mess we are in, not help Sky and co increase their profits.
Just think how many monthly charges you might have that all include VAT; mobiles,satellite, home phone etc. the 40p's soon add up to millions across the country.

[Postman Pat]

True, particularly as when the govt increase the vat companies like Sky will almost definitely pass on the increase to us.So its only fair they should reduce it now, no matter how small it is.

[dms05]

If Sky don't reduce their charges it means they have increased the basic price of the packages. Now I'm sure somewhere in the T&C's their are all sorts of conditions relating to (a) writing to each customer about an increase (b) giving advanced notice of any increase (c) time interval between increases. I haven't the time or inclination to trawl through all of that but I suspect Sky will have to reduce prices. In any case all they do is change the rate on their computer and it will automatically take place, unlike a retailer who has to reprice vast numbers of items and retag them at the new price.

[NewsreadeR]

If Sky don't reduce their charges it means they have increased the basic price of the packages.

A Sky subscription, is x amount including VAT. The VAT content could be 10%, 15%, or even 17.5% - therefore technically Sky don't have to drop the VAT content or pass it on as the subscription is still the same price. (although they should do in light of the current times)

I maybe wrong, aren't Sky VAT registered in Luxembourg?

[Undecided Adrian]

To be honest I have seen the price of electricals start to go up anyways due to the poor strength of the pound so I reckon we'll see very little drop.

Although Amazon aren't repricing you have to use a vat reduction code to get your 2.5% off on valid items.

[astra]

sky will wait until after crimbo and properly increase the sky subs