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VAT Free Postage for Charities – All You Need to Know

This is something we’re really excited about here at CMS – VAT Free Postage for Charities.

In essence, it’s exactly what it says on the tin; A VAT free postage solution designed to help save charities money on their mailings.

But for the purpose of this post, we will go into a little more detail about; what it is, who it applies to, how it works, and the numerous benefits!

What is VAT Free Postage?

VAT free postage is a cost-saving offer we provide in conjunction with Royal Mail. The process involves removing the VAT cost (currently 20%) on a large part of the postage, so you pay less.

It is available to registered charities that are otherwise unable to reclaim VAT. The offer is entirely above board and is governed by HMRC.
This little-known deal can help charities stretch their budgets further, and do more with their money.

How it Works

The cost of postage is normally charged with VAT added on top (currently 20%). This can add a lot on to the total cost of your mailing.
Our method involves splitting the postage element into 2 parts to save money.

Part A – Logistics Management Cost

• This is the cost for moving post from our production centre to the individual Royal Mail centres throughout the country

Part B – The Royal Mail Cost

• This is the cost for the mail to be processed at Royal Mail centres and hand delivered by Royal Mail postmen and women.

Our money-saving method for charities involves:

Removing the VAT cost of the Royal Mail part (part b) so that you do not have to pay 20% extra on that part of the postage.
This cuts out a significant portion of the cost and will save a great deal on the overall price of print, fulfilment and postage.

Using this method we recently saved a client:
£1,300 on a 35,000 item fundraiser mailing
and
£1,900 on a 20,000 item raffle ticket large letter mailing.

 What’s the catch? Well…there isn’t one. Honestly.

This is a deal that we have prearranged with Royal Mail, it’s entirely above board and governed by HMRC. Charities get access to cheaper postage & we get to do what we do best…print, package and send direct mail!

Only 3% (ish!) of mailing houses have access to this deal and as a result, there appears to be a significant lack of awareness. We are hoping to change that by spreading the word and helping more charities benefit.

What are the Benefits?

The primary benefit of this offer is clearly the money you save. But there is also plenty of opportunity to put the savings to good use. You could:

• Contribute to the cost of other areas of mailing, such as print or fulfilment
• Source higher quality materials to make your direct mail really stand out
• Increase the size of your campaigns by mailing to more people
• Reinvest the savings into raising awareness of another campaign or good cause!
• and much more

We would be happy to help plan the perfect VAT free charity mailing with you. To learn more, or get a same day quote call us on 0800 699 0501 or email enquiries@centralmailing.co.uk today!