Despite the overall digital capability of the groups, their high level of trust in HMRC and their motivation to receive their repayment quickly and efficiently resulted in negative feedback about their current level of involvement and their desire to have their perceived burden reduced. Across the responses to the ideas, and aligned with their suggestions for improvements, participants valued automation where possible, transparency and a lump sum payment. They spontaneously suggested using Face ID technology to help streamline the process and avoid the need to remember or reset Government Gateway details. Forty one-to-one online and phone interviews were conducted that were between 45 and 60 minutes in length, taking place between the 21 March 2022 and the 3 May 2022 . Just provide your IOSS number and full customs data in the pre-advice you send us. Participants felt that notification about the repayment reason and process would be important for this option. HMRC issues a high volume of P800 tax overpayment notices to taxpayers each year (around 3.5 million in 2021). If your overall annual sales from NI to the EU doesnt exceed 8,818 (10,000), you can continue to charge UK VAT to your EU customers. Theres basically no acceptable excuse for missing self assessment tax return deadlines, even if you don't owe HMRC anything. An HMRC-issued cheque that is sent to a taxpayer 21 days after notification that a tax repayment is due if alternative electronic payment methods are not utilised or unavailable. Intl Bus Parcels Signed Extra Comp, A Parcel is anything that is not a Large Letter The EU customer receives their product without interruption before delivery, Support you in registering and filing tax returns for IOSS for a fee/subscription OR, Take care of VAT at point of sale and pay VAT obligations under the partners IOSS number, Can help you to keep costs appear low at checkout, Marketplace takes care of VAT (for B2C items up to 150) and IOSS number, Useful if you have sales of goods over 150 or sales of any value to businesses, Simplifies the process of filing and registering for VAT/IOSS and ensures calculations are correct, Option for a pay as you go solution to be hands free of VAT, Peace of mind if wanting to register yourself for IOSS and file for VAT, Unexpected costs for your EU recipient (VAT and handling fee), Customers can refuse to pay and item is returned, Specialist understanding and time is required to manage returns (handling enquiries with tax authorities, choosing where to register and file, deciding on an intermediary), Doesnt cover items over 150 or items of any value sold to businesses, Need to increase prices to cover the cost of VAT, Can be non-cost effective for low value parcels, Can be difficult to obtain a VAT refund when goods are returned, Requirement to complete VAT returns yourself (the returns would not be done for you but checked), unless pay-as-you-go solution is used, Higher cost of business if choosing a pay as you go per parcel option (but no requirement for tax return filing). No parcel can be heavier than 2kg. How the Pay As You Earn system works - an employer's perspective It should always start with IM and then be followed with 10 numbers with no spaces, e.g. A key opportunity barrier was that taxpayers did not always receive their repayment notification, but rather first discovered they were due a repayment when they received a payable order attached to a letter from HMRC. Inertia was compounded among participants who did not mind depositing cheques and those who were able (and aware of the facility) to deposit cheques via their banking app. Changes to tax codes: This was the least preferred option across the sample, and the least understood. These participants described an opportunity barrier whereby they either did not have the correct identification required, had difficulty retrieving their Government Gateway details and password, or attempted to complete the process on their phone and later forgot to return to the process on a laptop or desktop. HMRC systems do not currently have CHAPS functionality or the ability to store overseas bank information. Out of principle, and frustration at being overtaxed, these participants wished to minimise the tasks they had to undertake to claim their repayment, even if minor. You have rejected additional cookies. It's worth making sure you get back what you're owed, too. The choice is yours. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to 3,023. However, less trusting participants were interested in receiving notifications at future points in the journey. Some things to bear in mind to make the process as fast as you can: Sign up to receive email updates on your latest money saving tips, guides, competitions and more. One of the ways HMRC pays out tax refunds is via a payable order. Mon-Thurs 08:30 - 20:30 Fri 08:30 - 18:00 and Sat 09:00 - 13:00. Prepared by Kantar (Matthew Holt, Asma Ali Farah, Emily Fu) for HMRC. We have three options available to help you manage these changes depending on the size and nature of your business. The table below excludes self-claim repayment recipients, who had proactively contacted HMRC for a repayment before a repayment notification would have been issued. Participants across ages and groups wanted the option for a live chat with HMRC in case they needed to contact them. It should NOT then be recorded as an expense. You have accepted additional cookies. The recipient may have to pay import VAT (and customs duties, if payable) and a handling fee in the receiving country. This research report outlines the research aims, methodology and findings from these interviews. We monitor HMRC response times on a weekly basis and will keep you informed of the status of your refund throughout the process. Some participants did not receive a repayment notification, and either: received a payable order (which was the first time they discovered they were due a repayment) or, proactively contacted HMRC to self-claim in year. A live chat was regarded as preferable to phoning HMRC, as wait times would be shorter. HMRC has today announced the launch of a consultation on the IR35 off-payroll working rules, with a view to eradicate the "massive problem" of double taxation. It must be acknowledged that there were participants who were content with the current process of waiting for a payable order and receiving letters; these taxpayers therefore may be unlikely to be reached by the solutions explored through this research. This was a popular option among current PAYE participants, who on the whole regarded it as a simple way to receive a repayment. We also use cookies set by other sites to help us deliver content from their services. size, scale and maturity of your business). Payable order hmrc MoneySavingExpert Forum Do note, while we always aim to give you accurate product info at the point of publication, unfortunately price and terms of products and deals can always be changed by the provider afterwards, so double check first. The Rolldeen Estates Ltd case. The fact that claiming online provided repayment recipients with their repayment sooner could be a motivational facilitator for doing so, though this depended on the amount of the repayment. Due to the changes in trading rules with the EU,we recommend that you understand EU VAT rates which you can find hereunder Quick links (downloadable in excel or pdf format)and potential duty rates. Youll be refunded the amount left after you have repaid the tax you owe. Capable withdrawers in particular reported lacking motivation to persevere with sign-up or the authentication process if they encountered difficulties. Please note: In accordance with Government guidance, if you are dispatching goods from Northern Ireland to the EU, IOSS cannot be used to declare and pay VAT on your EU sales. No more than 20mm thick Our IOSS and DDP services can only be used when fully compliant customs data is supplied. VAT: HMRC to end making payable orders to NETPs There were 2 main reasons for the unpopularity of changes to tax codes as a solution. In terms of the existing repayments process, this included suggestions to use online chat bots to reduce phone waiting times, and to use facial recognition features to improve the verification process for the Personal Tax Account (more on this below). Some taxpayers may not have engaged at all with HMRC (i.e. This section provides a summary of key characteristics of each profile identified in this research and the subsequent sections explore in detail the behavioural barriers and facilitators for each profile, as well as different participant suggestions for improving the repayments process. How long do tax refunds take? | Your Tax Refund With our IOSS service, you calculate and charge your customer at the point of sale the VAT payable at the destinations VAT rate. Participants liked the idea of avoiding the need to remember passwords and usernames, instead utilising the apps facial recognition and touch ID features. Every IOSS number is a total of 12 digits. If IOSS isn't for you, or you are sending items above 150 or items of any value to businesses, DDP may be the answer. In those cases, it'll usually involve a cheque or bank draft. We have actively put in place a range of actions in our operation, where possible, to check item presentation and data. We'll let you know by phone and text when the cash is on its way. (f) What is their awareness of the Personal Tax Account in general and as an option for processing tax repayments via BACS? Otherwise HMRC will send you a. Patterns with regards to the context of respondents were used in the categorisation. You can reach us on the phone or Livechat. The most appropriate solution for your business will depend on your circumstances (e.g. Secondly, some participants expressed a wide range of concerns about the involvement of their employer. However, once a NETP has completed the form, which is accessed via the Government Gateway HMRC will set a lock on the taxpayers record to prevent the payable order being automatically issued. Taxpayer contact with HMRC was limited during the repayment process. With the exception of those in the low online trust group, participants were keen to see fewer steps in the repayments process and wanted to do as little as possible to receive the money, while maintaining security. It should also be noted that definitions of timely payments were quite generous in the context of HMRC. Across the taxpayer groups, feedback from participants fell into 3 main categories covering both the current repayments process and more transformational solutions: a preference for more automation of the repayment process and HMRC support, a desire for a simplified Personal Tax Account sign up process. This was the least preferred option across the sample. You can change your cookie settings at any time. Our tax refund calculator lets you look back over the past 4-years so you can continue to use it each year to see what you could be owed. See below for further details. Here are the different options at a glance to help you to decide what suits your business best. As for how long it takes HMRC to process a tax return, though, you're probably looking at 8-10 weeks for them to sort out their end of things. Find out about the Energy Bills Support Scheme, Taxpayer experience of the HMRC repayments process, nationalarchives.gov.uk/doc/open-government-licence/version/3, An electronic transfer of funds between banks, An IT system that is used to sign up for online services of the UK government. Key in the number in this format to ensure that it is recognised. DDP is now operational to The Republic of Ireland. It provides a breakdown of tax owe and tax paid and is only issued if too much or too little tax has been paid. PLUS you can earn even more money while you wait for your tax refund by using the app to refer your friends to RIFT too. After youve had your refund, you can call us any time with questions about your tax. I spent 4 days trying to find the right documents and trying to login. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. Keep in touch and well keep you on the right side of the taxman, completely free of charge. I did not have everything I needed to sign up or login. This is the form that lets us tackle the taxman on your behalf. This included digitally limited taxpayers, those living in rural areas and those on a low income who were unable to afford data or broadband access. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. You have a range of IOSS options with Royal Mail. Received a letter on 27th April saying they were sending a payable order to natwest bank within 14 days. See our full list of services with prices and options. I just wanted it into my bank account. If you register yourself for IOSS, you will need to calculate the landed costs of your goods. Then anywhere from several days to 3-4 weeks on top of that to receive your rebate. When asked to describe their ideal repayment process, participants said that they would prefer not to need a repayment and not to have overpaid tax. It just needs to be as minimal as possible. Marketplace sellers who sell via Amazon, eBay, Etsy and NotOnTheHighStreet can continue to visit their local Post Office in the normal way. IOSS is available to all EU destinations. In some cases, your tax rebate will happen automatically. Remember, not receiving a P800 doesn't mean you're not owed a tax refund. We can work out if you would be due a refund and let you know what the fee would be. The points at which taxpayers could drop out of the process were: receiving the repayment notification; their response to reading the repayment notification; or their attempt to sign in to or set up their Government Gateway or Personal Tax Account. Most of the time, it'll be because you've been spending money in order to do your job. (e) What are the key triggers for customer support service use and the outcomes sought by taxpayers? As they expected the reclaim process via Personal Tax Account to be relatively straight forward, they did not see much need for additional points of confirmation. We also use cookies set by other sites to help us deliver content from their services. This means that older participants whose previous repayment pre-dated the existence of BACS online were more likely to be used to the payable order method of repayment. It's not just about your expenses, either. Other than automation, participants suggested that some guidance be provided in advance of commencing the process, detailing which documents will be required as well as where they may be able to locate them. The best way to speed up your tax rebate claim is to make sure you dont submit it during HMRCs typically busy periods. The primary sampling criteria for the research was the method of repayment. (h) BACS payment requested via PTA including views about ease of access, usability and timeliness? (a) What do taxpayers need in relation to the repayments process including information, timeliness, ease, choice, transparency, trust? To this end, HMRC has proposed some transformational solutions: payment authorisation via taxpayers mobile banking app, payment into salary accounts and changes to tax codes. Have a look at our 'How Long Does A Tax Refund Take' pagefor more information about how long it takes to get your tax refund done and some pointers for how to make things happen as fast as possible. A full breakdown of the achieved sample can be found in Appendix B. The letters were shown to participants in the interview itself, and even reading for a second time, passive participants either missed the green box that suggested that they get a Personal Tax Account, or else they skipped the first section of the notification entirely. For IOSS and DDP the existing international prohibitions and restrictions apply. There are several reasons why you might overpay, and you often have to file a claim and prove you did. Use your Company Tax Return to tell HMRC if you think youre due a Corporation Tax refund (known as a repayment) and how you want it paid. Out of the 3 solutions, this repayment method was universally preferred among participants with the exception of the digitally limited, who did not use mobile banking and were unlikely to be willing or able to do so. First-time repayment recipients also face a motivational barrier to using a Personal Tax Account. (BACS Personal Tax Account, 45 to 64, Less than 100). If you spot that your tax code has changed and don't know why get in touch and we'll get if fixed if HMRC's got it wrong. You can register and file your own EU VAT returns. This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service. In recent weeks we have been experiencing issues with items to Ireland using the Import One Stop Shop (IOSS) option, some of these items have been returned to UK sending customers. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. Intl Bus Pcl Track&Sign Xtr Cmp Ctry, MP8 All 3 customer groups preferred the banking app authorisation and salary account transformational solutions, as these were considered to be more automated and to require less involvement from the customer to receive their money. VAT: Late payment interest rates increased, VAT: DIY Housebuilders Scheme deadline for claims extended. You'll never have to phone them or reply to their letters yourself. In many cases, they'll take care of it automatically in installments. The chances are that you will have questions about the changes taking place in relation to EU VAT on 1 July and the options open to you. The greatest single dimension must not exceed 900mm but must be at least 100mm It felt like I was going round in circles. We'll tell you straight away what you're owed, It's free to find out if you have a claim. The same is true for DDP although in addition you will need to calculate and collect Customs Duty on items valued 150 or more. We often link to other websites, but we can't be responsible for their content. To mitigate this, the research drew on stimulus materials to prompt recall, as well as journey mapping and cognitive interviewing techniques, to take participants back to the circumstances in which they made decisions. mobile: 07748 117935, VAT Informed, Independent, Indirect Tax Advice, VAT: Recovering input tax on the charging of EVs, VAT: Charging EVs ruled to be goods not services. If you register yourself, all you need do is to input your IOSS number into the correct field, where requested, on the Royal Mail shipping platform you use. To address this issue HMRC has created a Gform that will enable NETPs to send their bank account information in order that the issue of a payable order can be avoided and a Clearing House Automated Payment System (CHAPS) payment made instead. Payable orders are like cheques. The best way to speed up your RIFT Tax Refund is to get your Authorising your agent (64-8) form back to us fast. It can take 8-10 weeks for the taxman to check your details and confirm your refund total, so the sooner you get us the information we need the sooner you'll have your money. From case studies to how-to guides, we can help your business grow, Whether youre set up on Amazon, selling on eBay, or youve got an Etsy shop, we can help you succeed, Find the right tool to help you streamline your shipping operation, and find out what your customers want from deliveries, HMRC OSS registration portal can be found here, You can find more information about these changes here, here is further guidance provided by the UK Government on these changes, International Business Non-Personal and Personal Correspondence User Guide, Delivery Duties Paid please see our guide, UK sellers do not ask their customer for tax and duty. Overall, participants did not want a great deal of communication from HMRC during the repayments process. To identify specific Country requirements, please visit our individual country pages. Less knowledgeable participants suggested that greater clarity about what the Personal Tax Account is and prompts to help taxpayers recognise if they already have one would be helpful. Except for the participants in the proactive group, understanding and awareness of Personal Tax Accounts was low across the sample, including a lack of familiarity with the phrase Personal Tax Account. Participants with limited tax knowledge who read the first section struggled to comprehend a Personal Tax Account and expressed no desire in following up to get more information. Participants disliked elements of solutions that they thought could cause confusion or make it difficult for them to isolate the repayment amount, for example, changes in tax codes were considered too difficult for a lay person to understand, making it very difficult for taxpayers to interrogate HMRCs calculations or recognise an error. That usually takes around 2 weeks to come through. In addition, participants who had phoned HMRC suggested that advisors could use less jargon during conversations, as they had found some of the information difficult to understand. Participants with low online trust and passive customers with low digital confidence wanted reassurance that the repayment notification was genuine, as they were being asked to enter personal details online. HMRC's OSS guidance can be found here . If you would like to progress please ask your Account Manager for access to the Landed Cost API (Aura) and they can raise a request with the Royal Mail API team. Self-claim repayment recipients who contacted HMRC required help filling out the relevant form, finding the guidance from HMRCs contact centre advisors to be helpful for them to be able to make their in-year claim. As soon as you're happy to go forward, we'll send your claim to HMRC for approval. Dont worry we wont send you spam or share your email address with anyone. Therefore the quicker you get these signed and sent back to us, the quicker we can progress your claim. Instead, HMRC would like to direct taxpayers to online BACS and other modern repayment methods and, at the same time, to improve the taxpayer experience of the repayments process. HMRC has received notifications and complaints from taxpayers advising that they can no longer cash their payable orders in their country or their bank.
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