If you are an organisation that can’t reclaim VAT, such as a Charity, Financial and Educational Establishment, then using Royal Mail postage rates can be prohibitive as the costs are fully vatable. However, Citipost Mail has a relationship with HMRC, which enables us to dramatically reduce the overall postal costs for those who can’t reclaim VAT, which is a significant cost saver.
Below, Business Development Manager, David Ward-Penny, explains Agency Agreements in more detail, including who is eligible and how to apply.
In 1789 Benjamin Franklin said “In this world nothing can be certain except death and taxes”, fortunately for some companies and organisations using Citipost Mail to send their direct mail, one of these can be diminished to significantly reduce the cost of sending mail.
Nobody likes to pay more than they need to, and if you are a Charity, Financial Institution or Educational Establishment, you can access VAT savings on your Direct Mail campaigns by using your Citipost Mail account alongside an Agency Agreement.
An Agency Agreement, also called a Schedule 17 Agreement, allows you to access VAT-free postage for the Royal Mail element of your mailings. As the Royal Mail cost makes up the vast majority of your mailing expense, you can expect to see a significant saving on each sorted mailing you send by simply having an Agency Agreement in place.
With an Agency Agreement, typically, you will save more than 4p per letter, and in excess of 6p per large letter.
Applying for an agency agreement could not be easier – the application requires you to answer only 15 questions!
Citipost Mail will support you with your agency application, overseeing the interaction with both HMRC and Royal Mail acting as your agent to ensure you can start saving money on your next campaign.
Already, we are supporting numerous charities in managing their agency agreements, allowing them to keep more of their donations, which in turn enables them to deliver more services to those they help. We support National and International charities alongside local hospices and specialist organisations. We are also helping schools, colleges and universities to save money on their mailings, enabling them to redirect money back to their students, and banks and building societies too, meaning that they can retain more of their funds to support their customers/members.
Are you eligible for an Agency Agreeement?
- Are an organisation which cannot recover VAT, such as a Charity, Financial Institution or Educational Institution?
- Do you spend over £5,500 a year on postage?
If you answered yes to the above questions, contact Citipost Mail so we can support you in making significant savings today.
Find David Ward-Penny on Linkedin.
Read more about agency agreements here.