helping dad to sell his house

googler

"i dont understand and never have where the EA charges 2% of a 400k sale and also charges the same on a 200k house they do the same work on both."

Vat is 15% at present. Why shouldn't that be a flat rate, as there's no extra effort for HM Customs & Excise to collect it, whether it's on a £5 purchase, or a £5000 purchase?

Income Tax is a percentage of earnings. Why shouldn't that be a flat rate?

I'm sure there's many other examples where levies and services are based on a percentage of the base value, but there's no apparent difference between two different base values; why should an EA fee be any different?

ragjoy

googler wrote: »

"i dont understand and never have where the EA charges 2% of a 400k sale and also charges the same on a 200k house they do the same work on both."

Vat is 15% at present. Why shouldn't that be a flat rate, as there's no extra effort for HM Customs & Excise to collect it, whether it's on a £5 purchase, or a £5000 purchase?

Income Tax is a percentage of earnings. Why shouldn't that be a flat rate?

I'm sure there's many other examples where levies and services are based on a percentage of the base value, but there's no apparent difference between two different base values; why should an EA fee be any different?

are you serious?its a scam and everyone knows it and it should be outlawed.
if im asked to build a wall and it takes a week and i charge £500 i cant then charge £500 for a wall that takes 2 days,so why can an estate agent?
basically he is saying you own more money than the next bloke so i can take the p*** and charge you double.

googler

I am serious.

You can charge whatever you like for building a wall, but it's not a percentage charge or flat rate based on the value of something else, so your analogy is falling down here somewhat.

VAT is the example I keep coming back to - whether you buy a CD at (say) £12, or a car at £15,000, the VAT is always 15% - £1.80 in the first instance, £2,250 in the second.

There's no difference in the collecting method, no extra work for either HMRC or the trader who has to send the return in, so why not a flat rate for this?

david29dpo

Because we have to keep the politicians rich!

ragjoy

googler wrote: »

I am serious.

You can charge whatever you like for building a wall, but it's not a percentage charge or flat rate based on the value of something else, so your analogy is falling down here somewhat.

VAT is the example I keep coming back to - whether you buy a CD at (say) £12, or a car at £15,000, the VAT is always 15% - £1.80 in the first instance, £2,250 in the second.

There's no difference in the collecting method, no extra work for either HMRC or the trader who has to send the return in, so why not a flat rate for this?

the point is a percentage charge is a scam imo,you obviously feel the opposite to that,but bear in mind many taxes are scaled for example stamp duty and many more taxes so that is where i believe your analogy is falling down here.
taxes and charges for any service are not the same in any way shape or form.