Help and Support

How we calculate Early Termination Charges

If you want to leave your contract before your minimum term has expired, you may be required to pay something called an Early Termination Charge. This covers what you owe us for the remaining time of your minimum term.

From 24th June 2021, following a change to HMRC rules, early termination charges will be subject to VAT.

Here's how we calculate them:

If you signed up to your contract before 10th December 2019

See our price guide for the charges relevant to you*.

If you signed up to your contract after 9th December 2019

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 then add the current rate of VAT to the final amount.
  • Any remaining credit on your account will be taken off your total.

* 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 charges:

You have Unlimited Fibre at £28.50, with three months and 20 days remaining on your minimum term.

We take off VAT, leaving us with £23.75.

We deduct a value for our costs saved, for example £12, giving us £11.75.

We deduct a further 1% for early repayment, making the total £11.63.

This figure is multiplied by the three full months you have remaining, giving us a charge of £34.89. 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 £11.63, to give us £7.79. Totalling £42.68 (£34.89 + £7.79).

We then add VAT to the final amount of £42.68. Your early termination charge would therefore be £51.22.

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