Royal Mail has notified us of their intention to increase their contract prices from 2nd April. This change is subject to Royal Mail’s regulator, Ofcom, publishing their final decision about the future regulation of postal services, which Royal Mail expects to be in mid-to-late March. A summary of the changes impacting services used by Equiniti is below. For more information please visit www.royalmail.com/prices2012
We recognise the importance of helping our clients manage their postage costs, so we are currently engaged in discussions with alternative mail service providers so that we can offer clients alternative arrangements for handling their mail. We will keep you updated on progress.
Value Added Tax (VAT) on our services
Changes to the rules about VAT on postal services and the way in which Royal Mail services are regulated have affected the VAT status of a number of their products. A limited range of their services became subject to VAT through 2011, and this will extend to all non-Universal Service Obligation services from 2 April 2012. For clarification, this results from changes made in the Postal Services Act 2011 and is not affected by Ofcom’s regulatory consultations. The key services Equiniti use that will be impacted include Cleanmail, Mailsort and Selectapost (business reply returns). A summary of the main services affected is available at www.royalmail.com/vat
Royal Mail Product Changes
April 2012 also sees the launch of Royal Mail’s biggest ever overhaul of bulk mail services.
What is changing?
Royal Mail are enhancing their products and providing more options that make it easier to choose what you need. They have developed a portfolio of products that are more accessible, simpler to understand and easier to use. They’re renaming and reorganising them into five product groups, so they can better meet our business requirements:
• Advertising Mail™ - for all your marketing needs
• Sustainable® Advertising Mail – reducing the environmental impact of your marketing
• Publishing Mail - for publications and periodicals
• Business Mail 1st Class - for urgent general correspondence including bills / statements
• Business Mail - for general correspondence including bills / statements
What Do I Need To Do?
There is no need for you to do anything. We are working with Royal Mail to ensure a smooth transition to the new services which will be live from 2nd April 2012, although Royal Mail will continue to accept your mail using the current products until Saturday May 12th 2012. Products used by Equiniti for mail sent out on your behalf like Mailsort or Cleanmail will be amended, renamed or replaced with comparable alternatives. We will ensure suitable alternative services are used as well as making sure envelope stationery is changed where necessary to show the new product indicia (markings on a mail piece showing that postage has been paid by the sender).
You can find out more by visiting : www.royalmail.com/bulkmail2012 .
If you have any questions please contact your Relationship Manager who will be able to assist.