VAT savings for Charities

Charities were hit hard with the introduction of VAT on UK postage in 2012, adding 20% to their postage costs with no obvious way to off-set the increase.

We have found a way for charities to only pay VAT on a small portion of the postage cost, typically only paying VAT on less than 2p of the 20p it could cost to post an appeal letter.

It involves the charity signing up directly with the postage supplier (not Royal Mail, they can’t do this) and signing what is call an AFA agreement. Nothing too painful, something for the accountant to have a look at!

We can also offer another solution involving the HMRC pack test, which, with the correct balance of leaflets can results in a 100% VAT free print / pack / post solution.

Could this benefit your non-VAT registered charity organisation? Contact us for more details.