If you need to cancel your service before the end of your minimum contractual period, then Early Termination Charges (ETCs) will apply.
The reason for this is that:
- We are in contract with our supplier/the underlying network carrier for your service, and so we're in contract as much as you are.
- We amortise the equipment and set up costs across your contract period, therefore if you end early, we'd be out of pocket.
- You are in contract with us.
How to calculate your Early Termination Charges (ETCs)
- Remaining charges due up to the end of your minimum contractual period
You must return any equipment we have provided upon request, and if you fail to do so or the equipment is damaged, then we will charge you replacement costs for this. We will pay for the return postage.
- You are subscribed to the National UltraBEAM 200 service at £59 inc VAT/month.
- You entered a 12m month minimum contract for this service.
- You wish to end the service 8 months into the contract, so 4 months early.
- You therefore have to pay 4 months as your ETC.
- 4 x £59 = £236
- Your total ETC is £236
When is the Early Termination Charge bill due for payment?
Immediately on cessation of your service.
VAT rules have changed on 2nd September 2020
Due to a recent EU ruling, HMRC have updated their guidance with regards to VAT on early termination charges.
Previously VAT was not required, however since 2nd September, VAT is now applicable to all ETCs.