The government’s 2012 budget announced changes to the current self-storage VAT regulations.
Prior to 2012 storage units had been treated in the same way as the rental of commercial property, exempt from VAT, whereas the traditional containerised storage services predominantly offered by Removals Companies as part of their range of services has always been required to charge its customers VAT.
The UK Government announced plans to change this and bring current self-storage VAT regulations into line with other forms of storage from the 1st October 2012.
These changes meant that the savings for customers looking to self store instead of using removal company storage were reduced. Containerised storage also has the following benefits compared to self storage:
- Collection and delivery services competitively priced in comparison to van hire and the time required to handle this yourself.
- Professional loading and packing reducing the risk of damage to goods whilst in transit and in storage.
- Improved security - restricted and controlled access to sites.
- Flexible space options – great for single or oversized items, only pay for the space you need.
- Unusual item storage – Bournes for example also provide storage for vehicles as well as specialised curtain storage where items can be hung to avoid creasing/damage.
- Cost effective short and long term solutions.
For more information on the changes to the legislation surrounding self-storage VAT regulations please visit http://www.hmrc.gov.uk/budget2012/vat-con-4801.pdf