Internet and mail order garden centres eligible for VAT refunds
Mail-order businesses, internet retailers and other users of Royal Mail and Parcelforce are eligible for a VAT reclaim, says Hannah Dobson.
She said: "My guess is that large and small businesses from all over the country qualify for a VAT refund worth thousands of pounds. But as each day goes by, the amount they can claim is falling due to the 4 year capping rules for refunds of VAT."
Any business with individually negotiated arrangements with the Royal Mail covering mailing services such as Parcelforce could be in line for a VAT payback. Those involved in large scale mailings have most to gain. This opportunity came to the fore on 31 March 2010 when HMRC confirmed that it will consider claims from certain Royal Mail users, going back four years.
Dobson added: "To maximise their claim, organisations should lodge their request as soon as possible. Every day of delay reduces the potential reimbursement. Organisations which have individual contracts with Royal Mail can treat the amounts paid as VAT-inclusive, which would enable them to claim up to 15% of the gross cost for periods where the VAT rate was 17.5%."