Direct Mail Marketing – July 2015
HMRC has published its long awaited Brief 10/15 regarding the VAT liability of direct mail marketing using printed matter.
Last month HMRC published revised editions of VAT Notice 700/24 ‘Postage, delivery charges and direct marketing’ and VAT Notice 701/10 ‘Zero-rating of books and other printed matter’.
This latest publication from HMRC clarifies transitional arrangements. HMRC has confirmed it will not take any retrospective action for supplies made prior to 1 August 2015 where the supplier has zero-rated a separate single supply consisting of either addressed or unaddressed mail only. Suppliers must notify HMRC of their intention to adopt transitional arrangements by 30 November 2015. Details of how to do this can be found in Brief 10/15.
Brief 10/15 also provides guidance for suppliers that have made supplies of direct marketing services prior to 1 August 2015 that are not within the scope of the transitional arrangements. Suppliers which do not fall within the transitional arrangements must settle their outstanding VAT liabilities with HMRC and notify HMRC by 30 November 2015. Details of how to do this is contained within Brief 10/15.
If you require assistance or VAT advice implementing these transitional and settlement arrangements or any other VAT matters please contact CVC using the details below.
Constable VAT Consultancy LLP (CVC) is a specialist independent VAT practice with a nationwide client base and offices in London and East Anglia. We work together with many charities and not-for-profit bodies ranging from national charities to regionally based organisations.
We understand that charities wish to achieve their objectives whilst satisfying the legal requirements placed upon them. Charities may be liable to account for VAT on supplies made and VAT will be payable on certain expenditure. As irrecoverable VAT represents an absolute cost to most charities, regardless of their VAT registration status, there is a need to review the position regularly and carefully. We offer advice with planning initiatives, technical compliance issues, complex transactions, help with innovative ideas on VAT saving opportunities, and liaising with HMRC.
If you would like to discuss how VAT impacts on your organisation please contact Stewart Henry, Laura Beckett or Sophie Cox on 020 7830 9669, 01206 321029 or via email on firstname.lastname@example.org, email@example.com and firstname.lastname@example.org. Alternatively, please visit our website at www.ukvatadvice.com where you can view some of the services we offer in more detail and subscribe to our free general and regular VAT alerts and updates. Visit our website for current news updates. You can also follow CVC on Twitter.
This newsletter is intended as a general guide to current VAT issues and is not intended to be a comprehensive statement of the law. No liability is accepted for the opinions it contains or for any errors or omissions. CVC cannot accept responsibility for loss incurred by any person, company or entity as a result of acting, or failing to act, on any material in this newsletter. Specialist VAT advice should always be sought in relation to your particular circumstance.