Currently, Royal Mail enjoys a VAT-free status, giving it an advantage over other postal companies when bidding for contracts with other organisations which are also VAT-exempt.
But the postal regulator wants to end this special status and according to The Independent wants the Treasury to introduce a 5& VAT charge.
Royal Mail though said its customers would not benefit by the levelling of the playing fields. A first-class stamp would rise by 1p, which it said would put Postcomm at odds with its duties, namely to protect consumers from unnecessary price rises.
MTD represents 'the single most significant change to the UK’s system of taxation in recent times', says Knill James partner Nick Rawson. So, how prepared are SMEs for digital tax reporting?
The SME community voices concern about the chancellor's measures in the Spring Budget
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Unincorporated businesses under the VAT threshold given an extra year to prepare before MTD becomes mandatory