HMRC gradually increased their influence on postal prices
throughout 2011. VAT was added to mailsort items weighing over 1 kilo
in December 2011 but now they have extended the range of products affected
to include almost all Royal Mail Products, at all weights, announcing VAT will be chargeable on almost all services from April 2nd 2012, the exception being stamped mail.

Most companies can reclaim VAT, but not all and for these organisations the impact of a 20% increase in their mailing costs could act as a serious disincentive.

The Royal Mail have also announced via their website there will be an increase in postage costs from April, though the amount of any increase and the date these will take affect has not been detailed.

Despite these increases in postage costs and the perceived threat, direct mail remains one of the most effective ways to communicate. Email and other forms of digital communication may cost less per message, but as a result of more sophisticated filters and the sheer volume of messages hitting inboxes every day, the ROI is steadily falling (Source DMA).

To find out how Mediascene can help you with direct marketing and communication plans, call Huw on 01443 828800 or email using our contact form.