Royal Mail new prices released

LikeGaz

:jwe have used London Postal Service recently - their prices seem fair. Only limitation is that they only cover London postcodes, but the saving in costs helps subsidise orders to the rest of the UK

ballisticbrian

An interesting spin off effect of higher postal prices. I mentioned in another thread the the new size limits will mean more accurate packing required and buying in rather than reusing boxes.

Further to this it turns out that some companies that are just below the VAT turnover threshold may be pushed over as while VAT isn't charged by Royal Mail services, the postage you charge people is counted towards your VAT registration threshold.
So basically in brief, you are pumping more money through your company for little if any extra profit and maybe having to start charge VAT.

Further, a friend of mine who owns an eBay business stopped sending any airmail, when the price over doubled in the 2012 price changes for this very reason.

custardy

ballisticbrian wrote: »

An interesting spin off effect of higher postal prices. I mentioned in another thread the the new size limits will mean more accurate packing required and buying in rather than reusing boxes.

Further to this it turns out that some companies that are just below the VAT turnover threshold may be pushed over as while VAT isn't charged by Royal Mail services, the postage you charge people is counted towards your VAT registration threshold.
So basically in brief, you are pumping more money through your company for little if any extra profit and maybe having to start charge VAT.

Further, a friend of mine who owns an eBay business stopped sending any airmail, when the price over doubled in the 2012 price changes for this very reason.

its called change

lovinituk

ballisticbrian wrote: »

An interesting spin off effect of higher postal prices. I mentioned in another thread the the new size limits will mean more accurate packing required and buying in rather than reusing boxes.

Further to this it turns out that some companies that are just below the VAT turnover threshold may be pushed over as while VAT isn't charged by Royal Mail services, the postage you charge people is counted towards your VAT registration threshold.
So basically in brief, you are pumping more money through your company for little if any extra profit and maybe having to start charge VAT.

Further, a friend of mine who owns an eBay business stopped sending any airmail, when the price over doubled in the 2012 price changes for this very reason.

The threshold for VAT registration increased from £77000 to £79000 on 1st April so unless they are spending over an extra £2000 on postage they don't need to worry.

ballisticbrian

lovinituk wrote: »

The threshold for VAT registration increased from £77000 to £79000 on 1st April so unless they are spending over an extra £2000 on postage they don't need to worry.

That's very easy for a small business with such huge increases in postage.

Anyway inflation is currently 2.8% which is £2156 on £77000 so that wipes out your increase straight away.

lovinituk

ballisticbrian wrote: »

That's very easy for a small business with such huge increases in postage.

Anyway inflation is currently 2.8% which is £2156 on £77000 so that wipes out your increase straight away.

I don't quite understand why a business would want to stay just below the threshold anyway? Surely that just makes the business stagnant and not growing anymore? How do they actually control it seeing as it is over a rolling 12 month period rather than a fixed 12 month period? Do they stop selling for a few months when they get close? That could be suicidal on somewhere like ebay as they could lose their search rankings and not gain the sales when they start up again.

We hit the VAT threshold last year and rather than worry about it, went hell for leather in sales and marketing and now are comfortably way over the threshold. The fact we hit it seemed to help us grow rather than hinder us!

ballisticbrian

lovinituk wrote: »

I don't quite understand why a business would want to stay just below the threshold anyway?

Every business is different I guess.

To pluck an idea out of thin air. Let's say you are in a high mark up business, where you make stuff by recycling free stuff. There's definately no VAT to claim back because your incoming goods are free, so your 70,000 turnover has a huge percentage profit. By becoming VAT Registered you will loose 20% on that 70,000 or have to put your prices up.
But at the same time, what you do is very labour intensive, so you simply don't have the time to make more goods and go from 70,000 to say 90,000 to make paying the VAT worthwhile.

Gary123456790

Hi all,

Does anyone know what the new RM code is for 2nd class small parcel?

I put stamps to the right value on my parcels and just put them in the postbox. I had labels made with '2PK - SECOND CLASS PACKET' but presumably the 2PK is now something else for small and medium?

I may just get the labels made up with 'SECOND CLASS PACKET SMALL'?

Thanks,

Gary.

purple321

It's 2SP........

whenIretire

Gary123456790 wrote: »

Hi all,

Does anyone know what the new RM code is for 2nd class small parcel?

I put stamps to the right value on my parcels and just put them in the postbox. I had labels made with '2PK - SECOND CLASS PACKET' but presumably the 2PK is now something else for small and medium?

I may just get the labels made up with 'SECOND CLASS PACKET SMALL'?

Thanks,

Gary.

Do you have to put anything on them other than the stamps to the correct value?

I have to admit that I've just been chucking them in the postbox with the correct value of stamps on the days that I can't get to a post office, and don't seem to have had any problems. Would it make them be processed faster if I did write the code on next to the stamps?