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Charging 17.5% VAT???

Submitted by visitor on Wed, 18/11/2009 - 12:55.
We finished our 2 year rental lease a year early and are having to pay Foxtons the commission for next year, as our landlords paid for two years at the start of our contract. This seems to be the done thing. My question however is, can Foxtons charge us 17.5% VAT on the commission now because "17.5% as that is what LL paid"? Is this illegal? Just because the landlord paid 17.5% last year how does that make any difference to the legally binding current rate of 15%? Any help appreciated. (Especially ideas for wriggling out of a massive commission!)
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Charging 17.5%

Submitted by visitor on Thu, 19/11/2009 - 16:21.
VAT is charged at the rate applicable to the tax point date.  Presumably their invoice for commission is recent and is dated therefore the rate should be 15%.  If they want to bill you at 17.5% they will have to bill you next year. HMRC can give you advice on this and may find it of interest. If the land lord has paid the commission why are you paying Foxtons? Are Foxtons going to re-imburse the LL for the year's commission? Ask to pay the LL directly if this is the case.  What are the terms of the lease that you signed up for with Foxtons? 2 years is an awfully long time to sign up for.
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You shouldn't have to pay the commission

Submitted by visitor on Thu, 19/11/2009 - 19:58.
This is a matter between Foxtons and the LL.  Unless this is explicitly stated in your contract if you leave early (including the quantified amount), you shouldn't have to pay.  OFT guidelines state that contracts should be clear and unambiguous.  I wouldn't pay this amount, and certianly not to Foxtons.
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Don't pay the commission

Submitted by visitor on Wed, 09/12/2009 - 10:41.

Definately don't pay them.  I work for a different letting agent and we do not do this.  It is deemed to be an unfair clause and one of my friends had exactly the same problem with leaving the 2 year contract (which they love to tie you in to) and I wrote a strongly worded letter to them stating that it was an unfair clause,  they could not charge a tenant the commission for a tenancy and that if they wanted to try to get the money they could take her to court for it.  Every time they have to take someone to court it costs them enough that they do not bother.  After I had written to them my friend did not hear another word from them.

 

DON'T GIVE IN

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