HMRC only pencils in VAT changes

HMRC has finally responded to requests from the industry for guidance over VAT payments on direct mail costs, although even now the taxman can only give a provisional date when the new regime will begin.
The DMA and the Charity Tax Group have been seeking guidance on so-called “single sourcing” of direct mail – which lumps together costs like print and post – since May.
Although the two bodies originally struck an agreement in principle late last year, the taxman said in January that companies using the practice would have until April 1 to get their houses in order. However, it then proved as elusive as Howard Hughes.
In what many will view as a laughable response – given the taxman’s penchant for sending out final demand letters willy-nilly – HMRC has now confirmed that it will not be publishing anything until at least June 5.
The new rules will not be implemented until at least August 1 – four months later than originally planned – and it will take no retrospective action against companies that applied VAT incorrectly before July 31.
However, the government department has stated that if it fails to publish the updated VAT notices by that date, the implementation date will be revised yet again.