What is Smart Franking, and do you need it?

What is a smart franking machine?

Franking machines have been around for a while now, and anyone using one will know they make sending post a lot easier to manage and cheaper. The technology behind them is always moving forwards, helping you to make further savings and make running your business that bit easier.

You may have seen modern franking machines described as 'smart', and wondered what this might mean…

So, what makes a franking machine smart? These new machines have the ability to account for VAT, meaning that you frank as before, but the machine has all the VAT information already on its system, taking care of the calculation that enable you to claim VAT back.

Why is that needed? Well, since the EU rules were changed in 2011 some types of mail became subject to VAT (such as business mail, and special deliveries), while standard mail and parcels were not. All of this can be confusing, and complicated to keep a track of. As long as you put the correct postage information into the franking machine, it’ll do the rest for you. Once it’s in and recorded, you’ll be able to claim back the VAT.

Which post has VAT applied?

The most common types of post that are liable for VAT are:

• Special Delivery Guaranteed by 9am™ (stamps, franking and account)
• Special Delivery Guaranteed by 1pm™ (account)
• Royal Mail Tracked 24 and Royal Mail Tracked 48
• Royal Mail Sameday®
• Royal Mail 1st and 2nd Class Account Mai
• Royal Mail Signed For™ will also become liable to VAT if purchased as an add-on to a standard rated service. In all other circumstances it will remain VAT exempt.

For the full list of VAT applied post, and those that are exempt, please take a look at the Royal Mail website for the latest information.

Do you need a smart franking machine?

If you’re a business sending post via the services that have VAT applied, the answer is – if you want to make life simpler and save money, yes.

What’s more, if you are currently sending post with VAT applied, you’ll only be able to actually claim your VAT back if you have a 'smart' franking machine.

The benefits of a smart franking machine

Because your smart franking machine takes care of the VAT calculations, and send both you and Royal Mail the correct information it takes away any error and reduces admin. You can keep a track of your spending and having a smart franking machine also gives you access to further discounts from Business Mail Advanced. Apart from those discounts, the postage prices you get from SMART franking machine are the same as a standard MailMark machine, so you’ll know exactly what you’re spending, and where you’re saving.

A smart franking machine is the … smart decision for any business that wants to take control of postage costs, save money and be able to make business decisions on mailing costs with a lot less stress than without one.

Which franking machines are smart?

If you’ve decided that a smart franking machine is right for you, the next step is to find the right machine to match your use. The simple way to do that is to ask an expert, and we are always ready to give advice on the right machine to manage your volume and type of post. The majority of newer machines will be smart enabled, but there are still some on the market that are not, and if you’re buying a second-hand machine the chances are that they will not be.

Along with these smart machines, there are franking machines that are S.M.A.R.T software enabled, similar name, yes.

There is a big difference though as these new machines (currently available from IMS as the iX-3, iX-5, and iX-(Shipping, Mailing, Accounting, Reporting, and Tracking)7 franking machines) have features even more advanced - and make your life even easier. One key feature that customers like is that you no longer need to fill out your Royal Mail Special Delivery book, as the franking machine keeps track of all of this automatically. The iX-Series Mailing Systems and S.M.A.R.T. Essential Mail Management Software (Shipping, Mailing, Accounting, Reporting, and Tracking) have been designed to make mailing simpler, and automate many of the tasks normally associated with business post.