The Inland Revenue Help Desk That Won't Help!

[Modern Print]

I recently called the Inland Revenue's VAT help desk to get guidance on weather a leaflet we had quoted for was zero or slandered rated. As you probably know the VAT rules concerning leaflets are print vague and contradictory in places.

The person I spoke to was friendly enough but admitted that the guidelines were complicated and so that could not give me a specific answerer. However they assured me that if I sent a sample of the leaflet in with a written request to know if it was Vat-able or not I would get a straight forward answerer.

Being a cautious Pembrokeshire man I first called my accountant who said that they would ask there VAT expert in Head Office to look at it. Sure enough the next day I got a call back to say that the guide lines were not really clear enough to give a legally binding answerer and they to had failed to get clear guidance from the Inland Revenue. So yes, I should wright in with a sample leaflet to get a definitives answerer.

I duly sent my sample leaflet of and 3 or 4 days later got a two page letter back that basically said that they would not tell me if the leaflet was Vat able or not.

According to them I should use the guidelines that there own telephone people told me were not precise enough and my accountants VAT expert could not definitively intemperate.

So much for the help desk.

What are small jobing printers like me based in Pembrokeshire supposed to do if the tax authority won't tell you if you should tax an item or not?

 

[Geoff T]

Hi,

know someone in your game + close to you, who might be willing to advise, will PM their name...they've been great with me!

regards
Geoff

 

[who_me]

Hi modern print,

You need HM Customs & Excise Notice 701/10 we've also written a guide, it may help: http://www.facemediagroup.co.uk/?page=vat a good rule of thumb is if isn't designed to be retained then it is zero rated, so in almost every occasion it will be zero rated, exceptions would be:
a space left blank on the design specifically to be written on
instructions to pin it up on a wall (making it a poster and subject to VAT)
offering money off
space for loyaty stamps.

This list isn't exclusive but hopefully it will give you an idea.

 

[elaine@cheapaccounting]

In the profession we do not call it a help desk - but if I put the name for it on here then Mr Alpha would ban me

 

[theprintingworks]

As well as the above, the weight has alot to do with VAT on leaflets. What gsm is it?

 

[who_me]

As well as the above, the weight has alot to do with VAT on leaflets. What gsm is it?

I know that our print divisions ‘grey people’ have had green light with the VAT office with regard to the weight issue, weight doesn't seem to be an issue albeit we're not talking in excess of 450gsm / 400 micron (ish)(and only because they didn’t need to know the answer for thicker stocks).

The basis seems to be more about the print on the leaflet rather than the finishing or stock it’s printed on. Thick stock, lamination, Spot UV, die cuts etc would usually only be used with retained items, such as menus and similar such tariffs, making them subject to VAT.

On many occasions there are borderline cases and you need to use your best judgement, but if in doubt add the VAT. In cases where you have chosen to zero rate a questionable piece of artwork, document it, and when you get your friendly VAT inspection, you’ll have all the information to hand to explain how you came to your decision.

As unfair as it may be, many presses seem to be very lenient on this matter, making it difficult to competitive on price, but I guess it’s just one of those things.