FreeAgent Subscriptions via Whitefield Tax / YogaTax
As a firm we have an agency agreement with FreeAgent to provide cloud based accounting and bookkeeping software to our clients, and under this arrangement we receive a commission from FreeAgent part of which we pass on to our clients by way of a discount against list price.
Currently our pricing for FreeAgent, including the discount to list price, is:
|Free Agent Direct Price||Whitefield Price|
|Sole Traders||£19/month or £190/year||£16/month|
|Partnerships||£24/month or £240/year||£20/month|
|Companies||£29/month or £290/year||£25/month|
|All prices exclude VAT. Available to registered clients of Whitefield Tax & YogaTax only.|
Discount to List Price
As mentioned above, we offer FreeAgent to our clients at a discount to direct pricing utilising the commission we receive from FreeAgent.
Prior to December 2021 we were offering a larger discount to clients. However, over the time we have been offering FreeAgent, we’ve found that we’ve had to spend a fair bit of time providing support to our clients, covering a spectrum of support activities – set up, training, ad hoc questions and periodic checks. Inevitably this has created a time cost which we need to cover.
Use of Cloud Accounting is a cornerstone of HMRCs Making Tax Digital programme, which currently applies for VAT, and extends to Income Tax from April 2024. This is leading to a number of our clients migrating their bookkeeping to FreeAgent and exacerbates this cost pressure.
The commission we get from FreeAgent is part of this equation and helps to offset our support time.
Therefore in December 2021 we reduced the discount passed on to our clients, and moved to the pricing above, although the new pricing has not been applied consistently to clients joining us since then.
For clients who took on FreeAgent through us on the old pricing, we intend to migrate you to the pricing above from 1 December 2022.
This will equate to a monthly increase of £6/m for Sole Traders, £8/m for Partnerships and £10/m for Companies, all VAT exclusive. Originally, we were planning to make the change in two parts, April 2022 and April 2023, but that seemed unnecessarily complex, so we settled on December 2022 as a compromise.
Clients With Direct Subscriptions to FreeAgent, or Free Licences via Mettle/NatWest/RBS
When clients subscribe to FreeAgent via ourselves we include a support package covering:
- Set up
- Informal training
- Periodic checking of your data and entries
- Ad hoc advice
This support package is based on our experience of what a typical client needs from us. It complements, but does not take the place of, technical support provided by FreeAgent themselves, and is part financed by the discount
If you subscribe to FreeAgent directly, or have a free subscription with NatWest, RBS or Mettle, and require support from us, then in some cases we need to charge a support fee.
Whether we need to charge this depends on our overall revenue from you, and the amount of support you need. We will let you know if it is applicable. Of course, this support isn’t compulsory, but we find most clients benefit from it.
Where we need to charge a support fee it is £15/m for companies, or £10/m for partnerships and sole traders, both plus vat.
With developments in HMRCs Making Tax Digital Programme, notably MTD for Income Tax from April 2024, it is likely that we will need to embark on a wider restructuring of our fees and support offerings which will subsume the above issues. We will be working on this during the remainder of 2022 for discussion with clients during 2023.