HMRC Confirms That Charities Must Pay VAT on Direct Mail
HMRC Confirms That Charities Must Pay VAT on Direct Mail
Any charity employing the services of a direct mailing company must now pay VAT at 20% as opposed to the previous zero rate. HMRC may request backdated payments from direct mail suppliers for up to four years which, depending on the agreement in place, they may be able to demand from their charity clients.
The Charity Tax Group has said that HMRC’s interpretation of the law is incorrect and is continuing to push for the decision to be reversed and the zero rate reinstated. HMRC are expected to publish further guidance on this in the near future.
To view the full Charities December 2014 newsletter please click the link below.
