Have a look at our, If you need to get documents from your employer and they are worried about what is involved then send them to our. If they received their P800 by post, they were reassured by the official HMRC letterhead and the information about the reasons for repayment being recognisably specific to them. Across all the solutions, participants emphasised the importance of being made aware of the repayment process, the amount and the due date. (c) What is the experience of repayment notification communications sent from HMRC (paper and digital) for different taxpayers? I just wanted it into my bank account. These charges will depend on the country you are sending to, the value and nature of the item (e.g. 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. Dont include personal or financial information like your National Insurance number or credit card details. Proactive participants also liked simplicity and that it required minimal input from the repayment recipient. On this page we tell you more about how PAYE tax and National Insurance deductions work. Don't worry if you had a mixture of self-employed and PAYE (employed by a company) work during the period you want to claim for. (f) What is their awareness of the Personal Tax Account in general and as an option for processing tax repayments via BACS? While there were multiple barriers to taxpayers reclaiming by BACS, the most important reasons for not doing so were: not receiving the repayment notification; difficulties logging in or signing up to the Personal Tax Account, low digital capability and fear of transacting online, inertia and attitudes towards overpaying tax and the repayments system. In HMRC's language, a tax rebate is "a refund on taxes when the tax liability is less than the taxes paid". However, they suggested several minor improvements they felt would streamline the repayments process. The service will allow the UK merchant to calculate and collect from their customer at the checkout an additional amount that will cover the cost of import VAT and customs duty alongside the DDP handling fee. It felt like I was going round in circles. For a better taxpayer experience and to reduce administrative costs, HMRC would like to shift taxpayers away from payable orders and direct them to BACS online repayments and other modern repayment methods. Use theRIFT tax refunds appto track the status of your HMRC tax refund. 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 payable order is one of the ways HMRC pays out tax refunds. The length of time generally depends on the tax office and what type of tax refund claim you are making as naturally the more extensive and complicated claims will take longer to process. Aversion to cheques stemmed from the perceived hassle of depositing them in person in a bank, exacerbated by local bank branch closures, and the timing of the repayments being during a COVID-19 lockdown. As a result, tax codes were associated with HMRC error, and could be seen as the reason the overpayment had occurred in the first place. One of the ways HMRC pays out tax refunds is via a payable order. Taxpayer contact with HMRC was limited during the repayment process. NETPs will then receive their repayments directly into their bank account without the need to visit their bank to cash a payable order. If you dont already have a solution in place, you can continue to post with Royal Mail but your customers may have to pay import VAT and a handling fee in the receiving country before they can receive their parcel from our delivery partner, no matter how small the value of the goods is. The preference for improved automation was associated with a desire for reduced communication, with these customer groups highlighting their desire to be informed of what they perceived to be the necessary stages of the repayments process: notification of repayment, reason for repayment and the date the repayment is to be expected in their accounts. 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. We are not experts on forms, they use a lot of jargon the P53, it will go to SPAR team, I dont know what those things mean. It's much more cost-effective to make payments electronically but when that's not. Please note:For Portugal any item valued over 150.00 (i.e. For some Click and Drop processes the system will provide you with a marketplace name that you can just click on rather than having to key in the actual IOSS number but in all other instances please key in the full IOSS number as described, without any spaces. The main stage of the research consisted of 40 online and tele-depth interviews, including 16 BACS recipients, 21 payable order recipients and 3 taxpayers who had submitted a self-claim form. IM0123456789. Digital by default, proactive and capable withdrawers, who were digitally capable and confident transacting online, tended to automatically opt to claim their repayment via the Personal Tax Account. Cognitive interviewing techniques were used to understand how different aspects of the process influenced thoughts, feelings and immediate behaviours. Mon-Thurs 08:30 - 20:30 Fri 08:30 - 18:00 and Sat 09:00 - 13:00. If we fight any HMRC enquiries for you (which is included free of charge) and if they did demand any money back,we would pay back the refund to HMRC ourselves.We will also send you a reminder when it's time to see if you have a claim next year. As of 1 July 2021, items imported to the EU with a value of 22 or less became no longerexempt from VAT. The declaration must include a description of the contents and their value. Each year, HM Revenue and Customs (HMRC) issues a high volume of P800 tax overpayment notices to taxpayers. Prepared by Kantar (Matthew Holt, Asma Ali Farah, Emily Fu) for HMRC. UK Sole traders typically pay their tax bill from their business account, and as such wish to categorise it as 'Tax' or 'HMRC' or similar. (d) What are the barriers and pain points including those that prevent different types of taxpayers from taking up the Personal Tax Account option to claim their repayment? For further details see our Frequently asked Questions page. Similarly to the 64-8 form, the quicker you can send any supporting documentation to us then the quicker we can calculate and submit your claim. This research report outlines the research aims, methodology and findings from these interviews. Secondly, participant recall of the process presented as a challenge for journey mapping. Once we've got all your information, it usually takes about 4 weeks to put your claim together. Please note: Each destination is responsible for setting their own import controls on restricted goods. The best way to speed up your RIFT Tax Refund is to get your Authorising your agent (64-8) form back to us fast. If you get a P800 calculation that says you're owed tax back, you might receive a payable order for the refund along with it. Participants felt that this would remove the barrier of remembering their login details or sourcing the required documents to be able to verify their identity. For IOSS and DDP the existing international prohibitions and restrictions apply. payment for the current tax year) or to a taxpayer who makes a deferred claim (i.e. 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. Overall, participants did not want a great deal of communication from HMRC during the repayments process. 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). As an alternative to DDU and IOSS, we have developed a Delivered Duties Paid (DDP) service. Otherwise HMRC will send you a. 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. At present, the controversial legislative quirk allows HMRC to collect more than it should by not offsetting the tax already paid by a contractor when handing a business a tax . Payable orders are like cheques. You have a range of IOSS options with Royal Mail. In addition, participants were purposively selected to take part in the one-to-one interviews, to ensure a diverse range of opinions, characteristics and repayment experiences as detailed below: a spread of ages across 4 brackets (18 to 29, 30 to 44, 45 to 59, 60+), a range of repayment amounts (less than 100, between 100 and 600 and greater than 600), repayment month (June to July 2021 or December 2021), whether the repayment notification was sent by letter or email, the inclusion of some participants who contacted HMRC during the repayments process to address any queries or issues, for payable order recipients, whether they had a Personal Tax Account or not. Government Banking - GOV.UK The EU's Import One Stop Shop (IOSS) can help you start or continue trading from GB into the EU. If its money I was owed from the prior tax year I would rather have it in one go so Im not out of pocket. In some cases, your tax rebate will happen automatically. How Long Does A Tax Refund Take? | Tax Back | RIFT Refunds Or you might want to consider our assisted solutions from Taxamo. Taxpayers can request repayment via Bankers Automated Clearing System (BACS) through their online Personal Tax Account, however, only a minority do so. Financially inexperienced participants (passive, digital by default) tended to like this option and see the money as a bonus as opposed to being owed to them. You'll never have to phone them or reply to their letters yourself. Most of the time, it'll be because you've been spending money in order to do your job. Universally, participants preferred the option of receiving the money as a lump sum rather than paid across the year. For further information about sending parcels and IOSS please see ourInternational Business Non-Personal and Personal Correspondence User Guidepdf, 2.16 MB. We can work out if you would be due a refund and let you know what the fee would be. DDP is now operational to The Republic of Ireland. If you don't want to register yourself, we also have Taxamo Assure, an innovative pay-as-you-go solution which is perfect if you simply want to concentrate on selling. The system automatically issued a payable order if a NETP was due a repayment. IOSS is available to all EU destinations. HMRC has received notifications and complaints from taxpayers advising that they can no longer cash their payable orders in their country or their bank. The amount of time it takes for a tax refund claim to be processed and then paid is typically between 8-12 weeks. A PO is sent to a taxpayer who makes an in-year claim (i.e. they did not contact HMRC to process BACS payment and instead preferred to wait for a payable order/cheque), and therefore may have decided to not engage with this research. Participants wanted to see simplification of the verification process, or at minimum, advance information about which documents would be required to set up a Personal Tax Account and how long it should take. Background. First-time repayment recipients also face a motivational barrier to using a Personal Tax Account. This is due to changes to EU shipping rules and the requirement to provide accurate customs pre-advice information, IOSS requirements included in this document. Though digital capability and aversion to payment by cheque were the most important drivers of the desired behaviour, there were several additional factors that meant taxpayers were more likely to claim online. HMRC. An important capability barrier related to taxpayers digital access, as those without stable internet access or a device they could use were unable to create a Personal Tax Account online. This includes participants who, after receiving a repayment notification: claimed via BACS through their (already existing) Personal Tax Account, set up a new Personal Tax Account to claim via BACS, started to claim via their Personal Tax Account, but stopped and received a payable order, did nothing, and waited for a payable order. You can register and file your own tax returns or we can assist you to do so. It's always a good idea to keep records of your work expenses, whether or not you're thinking of making a claim right now. A participant information letter was sent to individuals in the sample including a clear description of the research, its purpose and coverage, details of named contacts at HMRC and Kantar Public and information on how to opt-in or opt-out of the research. This is the form that lets us tackle the taxman on your behalf. There are several ways you can access IOSS. If you dont have an account, you register, which I did. While participants were willing to be involved in the authorisation of the payment, they preferred that to be the extent of their involvement. Paying into salary account: This was a popular option among current PAYE taxpayers, who overall regarded it as a simple way to receive a repayment. Whatever the case, it could lead to delays, returns and a poor delivery experience for you and your customers. Just provide your IOSS number and full customs data in the pre-advice you send us. Aura, from Hurricane can help you identify these in your checkout. From Monday 7 November 2022 we have changed our PDDP undeliverable process. Once registered for IOSS in only one EU country, VAT can be collected at your online checkout and paid on all B2C sales of goods with value up to 150 into the EU by submitting a single monthly EU VAT return. Where this has not been communicated to the customer during the sales process, and they are not expecting additional VAT and duties (or the handling fee) this may lead to delays or returns. While this group was most likely to say that they wanted the option to phone HMRC for support, one participant with Aspergers noted that he had struggled to communicate with the HMRC advisor on the phone and would have benefitted from a separate helpline catering to taxpayers with disabilities. Once you have integrated the technology into your checkout, it does everything for you including automatically calculating the landed cost for you so you know what to charge at the checkout. One of the ways HMRC pays out tax refunds is via a payable order. The section begins by outlining the ideal repayment process from HMRCs perspective and the reasons for dropping out at various stages, before introducing the 6 taxpayer profiles that emerged from the findings. (b) What would the ideal taxpayer repayments experience look like? (Payable order, 18 to 29, Less than 100). If its done online it will be paid in 5 days so I dont really need messages in those 5 days. If you want an update at any time, just give us a call -we can sit on the phone to HMRC for you while you get on with better things! For IOSS there will not be any charges for you. The EU's Import One Stop Shop (IOSS) is a VAT registration scheme your business can use from 1 July 2021 to comply with the EU's new VAT e-commerce rules on sales from GB to the EU. On certain items, where the VAT rate is not 25% - which is mainly books and magazines - these may go out in the ordinary VAT flow where VAT and other charges are added. For undeliverable PDDP items where taxes and duties have been incurred, Royal Mail will automatically credit taxes and duties back into your Royal Mail account through an adjustment file. Table 1 below summarises the ideal repayment process and the reasons for dropping out of the process along the journey. You can register yourself, via an intermediary, and file your own EU VAT returns. Please check our International Incident Bulletin Page for the latest service updates and advice when sending items. 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. Qualitative data were analysed through a behavioural lens using the COM-B model to identify the barriers and facilitators to taxpayers claiming online via BACS. Patterns with regards to the context of respondents were used in the categorisation. Participants across groups felt the process would benefit from simplification regardless of their digital skills. That usually takes around 2 weeks to come through. Here are the different options at a glance to help you to decide what suits your business best. There are several reasons why you might overpay, and you often have to file a claim and prove you did. For most types of tax refund, the payment process all moves quite quickly once the claimed amount has been approved by HMRC. HMRCs OSS guidance can be found here. RIFT will handle the entire tax refund process for you from start to finish. A live chat was regarded as preferable to phoning HMRC, as wait times would be shorter. The EUs Import One Stop Shop (IOSS) is a VAT registration scheme your business can use from 1 July 2021 to comply with the EUs new VAT e-commerce rules on sales from GB to the EU. VAT: Was an option to tax valid? Alternatively, you can register for and pay VAT in each member state you are selling goods to. HMRC is looking to phase out repayments of VAT by payable order (government cheques) due to them being untraceable, with refunds to be straight directly into bank accounts. HMRC will stop issuing payable orders to overseas non-established taxpayers (NETP - taxpayers who are registered for UK VAT but do not have a business address here). This would help improve the transparency of the repayment, enable taxpayers to track the status of the payment and empower them to follow up any delays or problems. While there was variation in channel preferences, confident taxpayers were generally comfortable with additional notifications being delivered via email or SMS, following the initial P800 by letter, as they would not require the customer to take action. (j) Was the repayment via payable order/cheque? On average, it can take HMRC up to 12 weeks to process a tax refund claim. Before we can send your claim to HMRC we need the 64-8 form signed and returned to us as these confirm to HMRC that we are authorised to act on your behalf. Participants tended not to use this language to describe their Personal Tax Account even if they had one, so did not recognise the phrase on the repayment notification letter or realise they might be able to use their existing Personal Tax Account. Changes to tax codes: This was the least preferred option across the sample, and the least understood. Findings were analysed using a framework for understanding behaviour, the COM-B model. Either way, it's a great feeling to claim your money back from the taxman! The number of interviews conducted by payment method were as follows: 16 interviews with taxpayers who received a repayment via a direct bank transfer (BACS), either requested via phone (3) or through accessing their Personal Tax Account (13), 21 interviews with taxpayers who received a repayment via payable order, 3 interviews with taxpayers who made a claim within the same tax year as the overpayment, referred to in this report as self-claim repayment recipients. 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. There are 2 key limitations to keep in mind when reading this report. More destinations will be added in due course. If these items are sent to Italy via IOSS, the overseas recipient may be charged VAT. Firstly, the sampling presented some issues for the range of views that were initially collected. See below for further details. Therefore, this suggestion would only impact those taxpayers who could potentially become BACS online recipients with some additional support or if the process was simplified. This publication is available at https://www.gov.uk/government/publications/taxpayer-experience-of-the-hmrc-repayments-process/taxpayer-experience-of-the-hmrc-repayments-process. Views towards HMRC and the tax system also influenced motivation to reclaim online. For sales where Taxamo is the electronic interface, there is no need for you to register for IOSS and file tax returns. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. It's annoying, but it's all about protecting you. Kantar Public was commissioned to conduct 40 interviews with a range of repayment taxpayers to explore their views regarding the current repayments journey and proposed solutions. We currently believe only a small number of items are now being returned. 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. The research presented here is qualitative and explores a range of views in depth. What it's definitely not is a prize or a dodgy way of ''cheating the system''. The specific research objectives were to: Understand the experience of the current repayments journey for different types of taxpayers, including barriers and pain points that prevent taxpayers from taking up the Personal Tax Account option to claim their repayment and that may drive unnecessary customer service contact, Explore taxpayer views about what a better repayments experience could look like, considering tactical solutions and whether these would address taxpayer needs, Understand how taxpayers respond to proposed transformational solutions, Understand how taxpayers want to be communicated with and supported in order to maximise positive engagement with potential new repayments processes and services. 21% in Belgium. 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. All it means is the taxman doesn't know he owes you the money. We are also at an advanced stage of deployment planning for commercial solutions for DDP too and will be contacting existing customers in due course. Of course, with RIFT you won't need to worry about dealing with the hassle and complexity of all this. The more accurate the information we have to present to HMRC, the quicker it will all get accepted and refunded. Participants generally were happy with the level of information included in the current version of the repayment notification, though suggested a few additions to the letter, including: a way to check that the letter is genuine, greater clarity about what the Personal Tax Account is, information about how long the Personal Tax Account set up should take and what documents are required, an alternative contact method for disabled taxpayers (see section 5.2 for more detail). It says a payabl order has been issued to you seperately. This is very similar to a traditional cheque and can either be posted directly to you or to your bank to process. Aura provided by Hurricane is a landed cost calculator that can be used to do the calculation in your checkout. Take a look at the Frequently asked Questions and their answers to help you find the right solution for you and your business. A tax refund is money HMRC gives back when you've paid too much tax. If you include your bank details (account number and sort code) on your Company Tax Return, HMRC will automatically refund what youre owed into your bank account.
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