Terminal Hire Agreement with Merchant Rentals Limited
Q: What is the price change?
A: Under the terms of your terminal hire agreement with Merchant Rentals, Merchant Rentals has the ability to increase your terminal rental by 1.5% for every 1% that the Corporation Tax rate is increased. This is detailed in clause 2.5 or 2.6 of your agreement, depending on your contract type.
On 1st April 2023, UK Corporation tax increased from 19% to 25%. This means that Merchant Rentals can increase your rental by up to 9% in accordance with your contract. However, in reviewing the price change, Merchant Rentals have taken the decision to only pass on a 6% increase to customers.
Q: Do I need to take any action?
A: You do not have to do anything or take any action. The change will be automatically applied to your agreement with Merchant Rentals Limited and shall be documented on your account with us within the 30 day notice period advised in the communication you have received.
Q: Why have I received multiple communications?
A: Each communication is linked to your specific agreement number. If you have more than one agreement with Merchant Rentals Limited, you with therefore receive multiple communications, outlining the change to that specific agreement.
Q: Are Merchant Rentals listening to retailers’ concerns, given the many other cost pressures affecting them?
A: We appreciate that price rises are never welcome, and we constantly listen to our customers to understand the broader challenges they face. We continue to review our products and how we can enhance these for our customers, we are dedicated to supporting the success of our customers and making it easier for you to do business with us. It is for this reason that Merchant Rentals took the decision to only implement the increase of 6% in line with the change to Corporation Tax rate, rather than the full 9% that Merchant Rentals is contractually able to apply.
Q: Can I exit my agreement if I don’t want to accept this change?
A: This change does not provide a specific right to exit your terminal agreement with us. You do however have a general right to serve notice and exit your terminal agreement. Should you wish to discuss this, please contact our dedicated team on 01942 400082
Q: Why can’t I exit my contract without charge?
A: A price increase due to Corporation tax is due to inflation and is included as a specific term of your contract with us. As such it does not materially change our relationship. The right to exit would require you to service notice.
Q: Will I receive a revised VAT schedule?
A: Yes this will be issued to you via e-mail or post, depending on your usual method of receipt. This will be sent within 2 weeks of when we communicate the increase to you.
Q: I would like to discuss this with someone, who can I contact?
A: If you have any further questions, we are always happy to assist you. Please complete the enquiry form below and a member of our team will be in touch within 3 working days.