This guidance note provides information on:
VAT on postage
VAT on delivery charges
the limited circumstances when postage and delivery charges may be treated as a disbursement
For information on the VAT treatment of supplies of stamps, please refer to the Liability ― supplies of stamps and philatelic items guidance note.
If a business recharges the cost of postage to a customer the VAT treatment of the recharged postage should follow the VAT treatment of the main supply. To the extent that a supplier has correctly charged VAT, the customer can recover the VAT as input tax, subject to the normal rules. For information about the conditions for recovering VAT as input tax, please refer to the Input tax - conditions for recovering VAT guidance note.
Key points in relation to VAT on postage include:
Royal Mail is the only organisation in the UK that can make an exempt supply of postage
not all the postage services supplied by Royal Mail are exempt from VAT
Notice
Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting
Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not
Fuel-related payments / mileage paymentsIntroductionMost employers will make payments to employees in relation to business travel. Among the most common payments in relation to business travel are fuel and mileage payments. If an employer does not reimburse these amounts, then the employee will be