How is my Early Termination Fee (ETF) calculated?

I have a:

Mobile account 

If you ended your agreement before 24 February 2021:

1.    We add together all outstanding monthly charges for the remainder of your contract, taking into account any discounts you might receive.
2.    We then take off VAT at the current rate.
3.    To get the final fee, we also take off 2% for early receipt of payment (as we’ll receive it in one lump sum, instead of staggered over the remaining months on your contract). This doesn't apply to business customers.

For example:

Your plan costs £45 a month, and you receive a £10 monthly discount. This means you pay £35 a month in total.

You have 6 months left until your plan ends, and you want to leave.

  • To work out your outstanding charges for these remaining 6 months, we multiply what you pay each month (£35) by 6 = £210 
  • We then subtract VAT (20%) from that £210 = £168
  • Finally, we take 2% from that £168 to get your final ETF = £164.64

If you end your agreement on or after 24 February 2021:

We'll calculate your ETF in mostly the same way – the only difference is we won't take off VAT at the current rate, due to a HMRC change.

For example:

Your plan costs £45 a month, and you receive a £10 monthly discount. This means you pay £35 a month in total.

You have 6 months left until your plan ends, and you want to leave.

  • To work out your outstanding charges for these remaining 6 months, we multiply what you pay each month (£35) by 6 = £210
  • Then we take 2% from that £210 to get your final ETF = £205.80

Broadband account 

If you end your agreement on or after 24 February 2021:

  1. We add together all outstanding monthly charges for the remainder of your contract, taking into account any discounts you might receive.
  2. We then take off VAT at the current rate.
  3. Next, we subtract any savings we make as a result of you leaving early, such as payments to suppliers. We also take off 1% if we receive your final payment early (as we’ll receive it in one lump sum, instead of staggered over the remaining months on your contract).
  4. Finally, we add on VAT at the current rate.

For example:

Your plan costs £25 a month. You have 6 months left until your plan ends, and you want to leave.

  • To work out your outstanding charges for these remaining 6 months, we multiply what you pay each month (£25) by 6 = £150
  • We then subtract VAT (20%) from that £150 = £125
  • We take off any cost savings (for example, £14 a month, multiplied by six = £84), leaving £41. If applicable, we apply a 1% discount for receiving your payment early, leaving £40.59
  • Finally, we add on VAT at the current rate. The Early Termination Fee would be £48.71