Saturday, November 29, 2008

VAT changes – how these are being dealt with on the Landlord-Law site


Mr Darlings reduction of the VAT rate to 15% from 17.5% has created a bit of a headache for myself and doubtless lots of other UK traders. This blog seems to be the best place to explain the way I have decided to deal with the various prices on Landlord-Law.

For me to change the Landlord-Law membership fees (4.70/£15/£70.50) would involve my web-designer doing work to the site (which I would have to pay for), as online membership purchase is completely automatic and done via a secure server. Were I to drop the prices, the benefit to the customers would be very small - £0.10p, £0.31p, and £1 respectively. As the Landlord-Law service is (in my view) pretty good value anyway, I am going to leave these prices as they are. Sorry!

For the other prices, I have decided to deal with them as follows.

Where the online price is based on an ex VAT round figure I have reduced my price to take account of the VAT fall. This includes Kits 1, 2, 3, and 4 non member prices, all the possession proceedings, and the tenancy amendments service.

Where the total price was chosen because it is a nice round figure, in particular the £75 advice fee, this has been left as it is. I put a lot of work into the advice given and I think clients can (effectively) pay another £1.60. I have also left the possession notice drafting fixed fee of £75 (although this is not used much as most people use the online forms), and the members kit prices for kits 3, 4 and 5. Members buying kits get a lot of support via the online forum so I am not going to reduce these prices.

The other two prices are the non members kit 5 price, which I have reduced to £95 (a bit more than the VAT drop) and my tenancy agreement check price, which has gone up to £391 (a slight increase on the previous fee).

I will take a view on prices generally next year if Mr Darling puts the VAT up again.

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2 comments:

LettingaProperty.com - Editor said...

Having read one of your books, I would say that you are worth the extra 2.5%!

donald said...

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

Betty


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