The “Agent for Access” scheme is aimed at mail users that are not VAT registered including banks, insurance companies and charities. They must pay VAT if they use a private company like UK Mail but they cannot charge VAT to their customers.

They cannot charge VAT on mail services that private companies like UK Mail must charge. There is a workaround involving two separate contracts but this is only suitable for the largest users.

UK Mail says its new arrangement, under which it pays the VAT-exempt access charge to Royal Mail on the mailer’s behalf, is more efficient and available to smaller companies.

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