UK Mail targets financial services
Published: 22 March 2007 10:43 AM
Industry Channel: Transport & Distribution
UK Mail is to offer a VAT-free mail service under a deal with Royal Mail.
The “Agent for Access” scheme is aimed at mail users that are not VAT registered including banks, insurance companies and charities. They must pay VAT if they use a private company like UK Mail but they cannot charge VAT to their customers.
They cannot charge VAT on mail services that private companies like UK Mail must charge. There is a workaround involving two separate contracts but this is only suitable for the largest users.
UK Mail says its new arrangement, under which it pays the VAT-exempt access charge to Royal Mail on the mailer’s behalf, is more efficient and available to smaller companies.
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