Andy, I thought UK post was VAT free.
Surely it is the "added value" of "packing & carriage" as an invoiced item that attracts Value Added Tax.

But I know what you mean, it is difficult because everyone wants the package to arrive safely and be covered by insurance etc - and then they are never in when the delivery driver wants a signature. But these things never cost a few pennies - more like in excess of £5 minimum charge. So as a small co you end up making no profit on that but still have to charge the VAT.
And how many customers ever think that those nice jiffy bags actually cost you money

I remember being asked by the tax inspector for a particular receipt, and he hummed and hahhed for a while - turned out I had an input error in my accounts, £2,000 recorded for £25 train ticket
still no idea how that happened.

Not if your a business and have a royal mail credit account, you have to pay vat on top, absolute rip off, all of the following is plus vat

Parcel Despatch

Special Delivery Guaranteed by 9amâ„¢ (stamps, franking and account)
Special Delivery Guaranteed by 1pmâ„¢ (account)
Royal Mail Tracked 24 and Royal Mail Tracked 48
Royal Mail Sameday®
Royal Mail 1st and 2nd Class Account Mail (formerly Packets)
Royal Mail Signed Forâ„¢ will also become liable to VAT if purchased as an add-on to a standard rated service. In all other circumstances it will remain VAT exempt.

And i am pretty sure my accountant is unaware of taht too

There is a code on Royal Mail OBA (online business account) for first and second class uk packets, large letters and letters that you can use to be charged the rates without VAT, I am not sure what it is off the top of my head but you account manager will tell you and set the OBA up to use these codes, if you are VAT registered it won't make any difference as you claim it back.

The VAT registered business is at a disadvantage to none VAT reg business because post is a service and as such is taxed in full so the VAT reg business is paying around 20% more on postage cost than the none VAT business, paying VAT on you OBA account makes no difference to you margin, at least VAT is charged to all on Airsure and Special Delivery so you are at no disadvantage with these

With regard to OP this happens all over, the UK has a huge problem with it in the construction industries

Its against you when someone in china can send a packet to UK for 60p that arrives next day or so but UK to UK would cost about £2.60 or more

I tried not to look at our OBA bills as they wound me up so much, the point of being VAT registered is you can claim back expenses on the total cost, not the total cost + vat, if it is that way then it should be like that for everything.

There is no incentive to be honest. I know, because I am and ion the last few months my income has been so low that including paying paying seguridad social (which I'm behind on actually)and IVA (also behind on) my taxation level is over 60%. I know I get some of it back at the end of the tax year...but that's too late for my present circumstances and the fact that late payments are higher payments.
Even if I wanted to I couldn't be dishonest because my income is so low that there's literally nothing to hide! It's not changed my view that everyone should pay their share.But it has made me realise that this is more than my share because of tax avoidance. Personally I'm beginning to relax my attitude to the common man avoiding his tax as many of them are my vecinos and if they didn't they'd be in the same rocky boat as me. But I'm hardening my attitude to multinationals. ut there's a ray of hope that some people are showing what intelligence can do over greed! http://www.theguardian.com/commentis...art-capitalism

That amazes me, all that way, same Royal Mail system, same postman yet we have to pay so much for the same

The fact that you have to charge/register for IVA from the first Euro earned has always seemed counterproductive to me, it's makes it so difficult to work legally and turn a profit if you have a small turnover

True. You also have to pay Seguridad social (270 a month in my case) whether any work comes in at all ...or not! Not surprisingly we're in a catch 22 situation where my husband can't afford to start a business! I'm happy to work hard and pay my dues...but they don't let you start up on a sliding scale so you can never drag yourself off the bottom. Spain has got this all wrong. You don't grow a big business from a starved small business. You don't even manage to keep a small business this way!

And did you have to have someone come and inspect your work place ?

I think a few people are a bit worried now too as things are tight and they are worried about being grassed up.

the good thing is you can start up now for €50 a month and not the €270, so if you think about health care and stuff I think its worth that, I want to sell on Amazon.es and we cant without IVA so.......... also a few other thigns cant be done, and when your legal, surely its better, but the €270 is a killer unless your having it off.

All I can say about here is at least there is transparency, but whether that is acted upon is another thing. In UK having the threshold is ok, but it also is open to abuse, however you have to pay NI in UK which I don't like so prefer being Ltd.

As I've said on another thread this 50 euro start up rate of Seguridad social has NOT come into force yet. And once you've already started up....you're no longer a startup! So if you're over 30 and can't afford 250 or so a month WAIT!

Oh ok, but like the Satellite is it ? forever waiting. Thanks Ill check that out as ive give this advice to others

He may be kidding me, but my Gestor told me it's now in force. And to be fair it's backed up by this article

http://www.infoautonomos.com/informa...es-30-jovenes/