If you’re thinking of leaving us before your contract is up, you might be asked to pay something called an Early Termination Charge. Whether you’re leaving a broadband, phone or mobile contract, you’ll have to pay this charge.
From 24th June 2021, following a change to HMRC rules, early termination charges will be subject to VAT.
This page will show you how we work out what you owe.
What you are charged will depend on the price you pay and the amount of time remaining in your contract.
Residential broadband and phone charges
- We take your monthly charge*, including any discounts.
- We then deduct the current rate of VAT.
- We then reduce the charge to take account of any costs we save because of you leaving early, such as wholesale costs.
- We then deduct 1% for early payment.
- We multiply this figure by the remaining months of your minimum term to get the final charge you owe. Any part month will be charged daily on a pro rata basis.
- We add the current rate of VAT to the final amount.
- Any remaining credit on your account will be taken off your total.
You will not have to pay any phone early termination charges for any remaining period of the minimum term for which you have Line Rental Saver.
*Unless you are in a fixed price contract minimum term, your monthly charge, including any applicable discounts, will be increased on or after 1st March every year from March 2022 by the Consumer Price Index (CPI) rate of inflation published by the Office for National Statistics in January of that year plus 3.9%. This means, your early termination charge will also be subject to these increases. See our CPI Plus 3.9% Guide for more information.
Example charge:
You have Unlimited Fibre and Line Rental at £23.99 a month, with three months and 20 days remaining on your minimum term.
We take off VAT, leaving us with £19.99.
We deduct a value for our costs saved, for example £12, giving us £7.99.
We deduct a further 1% for early repayment, making the total £7.91.
This figure is multiplied by the three full months you have remaining, giving us a charge of £23.73. We then calculate the pro rata amount for the other 20 days. If you left us in September, which has 30 days; 20 days divided by 30 days is 0.67. This is then multiplied by £7.91 to give us £5.30. Totalling £29.03 (£23.73 + £5.30).
We then add VAT to the final amount of £29.03. Your early termination charge would therefore be £34.84.
Business broadband and phone charges
- We take your monthly charge, including any discounts.
- We then deduct the current rate of VAT.
- We reduce the charge to take account of any costs we save because of you leaving early, such as wholesale costs.
- We then deduct 1% for early payment.
- We multiply this figure by the remaining months of your minimum term to get the final charge you owe. Any part month will be charged daily on a pro rata basis.
- We then add the current rate of VAT to the final amount.
- Any remaining credit on your account will be taken off your total.
*If you signed up to a contract with Plusnet on or after 15th March 2021, your ex VAT monthly charge, including any applicable discounts, will be increased on or after 1st March every year from March 2022 by the Consumer Price Index (CPI) rate of inflation published by the Office for National Statistics in January of that year plus 3.9%. This means, your early termination charge will also be subject to these increases. See our CPI Plus 3.9% Guide for more information.
Example charge:
You have Unlimited Business Fibre Broadband and Line rental for £27.50 a month, with three months remaining on your minimum term.
We take off VAT, leaving us with £22.92.
We deduct a value for our costs saved, for example £14, giving us £8.92
We deduct a further 1% for early repayment, making a total £8.83.
This figure is multiplied by the three months you have remaining, totalling £26.49.
We then add VAT to the final amount of £26.49. Your early termination charge would therefore be £31.79.
For more information about ending your Plusnet contract (if you're absolutely sure that's what you want to do), take a look at the following guides.
Learn all about your contract.
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