The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note provides an overview of the VAT treatment of postage and delivery charges. For supplies of stamps see the Exemption ― supplies of stamps and philatelic items guidance note.
Under EU law, only ‘public postal services’ provided by a ‘universal service provider’ can be exempt from VAT. This was challenged by TNT Post UK Ltd and the CJEU ruled that the concept of ‘public postal services’ covers operators who undertake to provide all or part of the universal postal service as defined in Article 3 of Directive 97/67/EC and that the exemption only applies to postal services provided in capacity as the universal service provider.
Royal Mail, as the operator providing the public postal service in the UK, is the only postal body in the UK eligible to exempt postal services from VAT. However, following the TNT decision, exemption does not apply to supplies made by Royal Mail for which the terms have been individually negotiated. Consequently, it was necessary for HMRC to amend the VAT treatment of certain services provided by Royal Mail and the current rules are outlined below.
Postal services supplied by Royal Mail that are individually and freely negotiated or not subject to any price and regulatory control will be liable to VAT.
It should be noted that Royal Mail has a number of products which, by regulation, have to be made available on the same terms and conditions to all custome
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
There are several sets of provisions in the Taxes Acts which relate to ‘close’ companies, most of which are anti-avoidance measures aiming to catch transactions between those companies affected and their owners, where there may otherwise be a tax advantage. Broadly speaking, most owner-managed or
Terminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period. So if the final accounting
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
The rent-a-room scheme was introduced in the early 1990s to encourage homeowners to take in lodgers.Fundamentally, the rent-a-room scheme is a relief which means that the rent received by an individual from a lodger (up to a prescribed limit) can be exempt from income tax. If the gross rents are
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.