HMRC has issued Revenue & Customs Brief 64/09 confirming that certain services supplied by the Royal Mail will become liable to VAT from a future date to be confirmed, following a legal challenge to the scope of the exemption in the UK. It will apply to those services which are individually negotiated or not subject to any price and regulatory control. It will not apply to normal postage charges.

A revised version of VAT Notice 700/30: VAT Payments on Account has been issued which contains updated information about banking details and reconsideration procedures.

Further information can be found on the HMRC newspage here http://www.hmrc.gov.uk/news/index.htm

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