Regarding VAT on the printed material, the rules in the UK are quite complicated. HM Revenue and Customs classifies most printed items, such as postcards, posters and promotional stationary, at its standard rate of VAT (17.5%), but there are some notable exceptions.
In general, leaflets & flyers are VAT-free unless one of the following is applicable:
If an area of your leaflet is designed to be written on by customers it is likely to be classed at the standard rate for VAT.
Mentioning a discount promotion, such as “20% off when you show this leaflet”, means that the leaflet is classified as a voucher and VAT of 20% must be paid.
Mentioning “free entry with this flyer” results in the flyer being classified as a ticket so VAT must be paid.
Leaflets designed to be shown in shop windows are classified as posters and become eligible for VAT.
Finally, the use of thick paper or card, or laminating the leaflet results in HM Revenue and Customs determining that the leaflet is designed to be retained by the recipient, resulting in it being classified at the standard rate of VAT.
Some printing companies will still look to charge you VAT on leaflets and flyers even when they are classified as being exempt from VAT. Knowing the rules can help you negotiate a better deal for yourself.