Just a reminder that the UK Value Added Tax (VAT) holiday, which was introduced to help stimulate the consumer economy follow 2008/9’s financial crisis - by reducing VAT to 15%, will alas be coming to an end and returning to the previous rate of 17.5% from 1st January 2010. This change will impact everybody and of course result in a small monthly price rise on all broadband services.

A handful of ISPs, mostly those that did not reduce the rate last year, are likely to retain their existing price levels. However, most will adjust their rates upwards by the extra +2.5%. Those seeking to still gain the benefit of a lower VAT rate before January might find pre-paying for longer contract options to be attractive.

We always recommend caution when taking any longer ISP service contracts and suggest only considering such a move when you are confident in the services quality (i.e. existing customer with positive experience of the broadband connection).