Royal Mail Smart Meter Technology

Smart meter franking technology is an older piece of technology that is now readily available in all modern franking machines as a standard feature. This feature comes with the ability to account for VAT on any VAT liable services that the user uses. All the VAT information will be stored on the franking machines system and all you need to do is frank the item as you normal would.

Any VAT liable service that you use will be automatically recorded so you can easily reclaim it back at the end of the month. This feature became necessary for a lot of business using services such as such as business mail and special delivery 9am where VAT will be required. Due to changes in EU rules back in 2011, these services became subject to VAT. Whereas other types of mail such as standard mail and parcels not being subject to VAT.

Another key change to a smart franking machine is the franking machine ink colour used. Previously red was the colour used, but with smart meter technology this changed to blue (also known as smart blue). This colour change helps Royal Mail’s systems read the franking impression much easier as the impression is clearer, more enhanced and higher quality.

Does a franking machine have to have Smart Meter technology?

If your business uses VAT applied services then yes, a smart franking machine is required. many businesses have since made the switch for this reason and are finding franking much easier. As of 2012, those who do not use a franking machine with smart meter technology, are not able to reclaim VAT.

Due to the VAT being quite a confusing and stressful aspect of franking, paying the wrong VAT is a very easy and simple mistake to make. This is why a smart franking machine exists, to prevent these mistakes and ensure that the correct VAT is being applied.

Below you will be able to see an example of what the latest franking impression will look like on your mail.

The Potential Smart Meter Benefits

• You can reclaim any paid VAT from HMRC.
• By franking mail in smart blue businesses will be able to improve the franking impression produced by the smart franking machine. Helping to speed up delivery speeds for Royal Mail.
• You can gain access to and use even more Royal Mail services and products that are VAT applicable.
• You can ensure that the correct postage is always franked on your outgoing post.
• A more detailed report of franking expenses is produced to help manage your costs more easily.