Fee for finalising Property Rental Accounts & SA Tax Rtn for H&W

Hi all. This question seems to come a lot to us in these recessionary times & we thought we will get views from our other colleagues on the web.

We have been approached by a client to finalise the Tax Rtn 2012 of H&W and between them they own 3 BTL residential properties. Both work on PAYE and even after inclusion of their rental profits, they will each be under basic rate tax band (so little tax planning involved here). They have no other source of income. Their record keeping is reasonable and their expense receipts are not too much too. Of course they have the normal monthly letting statements, Tenancy agreements, Bank Stat, Mortgage Interest Stat, Completion Stat, etc No record maintained on spreadsheets or Accting software of their rental income & expenses. We have a lot of work on at present but can accept this assignment as we are ahead of our targets. Based on outskirts of London, we were planning to charge a fee of £375+VAT per person. The client thinks this is too much 'cos once we have established the income & exp of rental profits, the other is a mirror copy except of course for their respective PAYE income which does not take too long to enter on their SA Tax Rtn. The VAT in our fee is biting them but we are VAT registered so cannot do anything about that. Do you think they have a point? Would you charge less or more than that? How do you justify your fee? We do not want to lose the client but then do not want to encourage other clients that pay us low fee too.

 They claim that their present Accountant is a bit further away from them so they are looking for someone local and that we are to them.  

Your views wil lbe highly appreciated .