Capable withdrawers in particular reported lacking motivation to persevere with sign-up or the authentication process if they encountered difficulties. The correct marketplace IOSS number will then be allocated to your item by Royal Mail. Taxpayer contact with HMRC was limited during the repayment process. Participants were purposively selected to take part in the one-to-one interviews, and the final sample contained a mix of genders, ages, repayment amounts and P800 notification methods. We use some essential cookies to make this website work. It was also important for more confident taxpayers that there was greater traceability within the repayment process, especially those with low online trust, for example, by providing an expected repayment date, as opposed to a time window, and in particular if any delays are to be expected. We'll then take our fee and send the rest of the money straight to you. Theres basically no acceptable excuse for missing self assessment tax return deadlines, even if you don't owe HMRC anything. It also felt like a sensible and appropriate choice as their salary bank account was usually their main account and they rarely if ever switched bank accounts. This was particularly the case among older participants in the passive group. 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. This can then be passed back to your customers. HMRC are always busier close to the self assessment tax return deadline of 31 January, and the tax credit renewals deadline of 31 July and they tend to be slower at those times. (c) What is the experience of repayment notification communications sent from HMRC (paper and digital) for different taxpayers? Customers are advised to identify whether items being imported into a specific destination will require licences/certificates or incur additional charges. Participants differed slightly in terms of how much additional communication they wanted after the P800, based on their taxpayer group and whether they had experienced any issues in claiming their last repayment. The website was very persistent in getting me to login with something I never thought I had in the first place. 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. For lower amounts, participants tended not to mind waiting several weeks for the money, whereas participants were more motivated to access larger sums sooner. As a result, HMRC commissioned research to collect taxpayer feedback to inform these aims. These are explored in detail below, along with barriers experienced by particular taxpayer groups. EU recipient is contacted in country and pays VAT owed before receiving item, UK seller registers for VAT themselves, via an intermediary, collects VAT and completes monthly tax returns, UK seller sells through an IOSS registered marketplace, so the marketplace take on the responsibility for collecting and paying VAT on B2C items with the value of 150 or below, Allows UK sellers to collect and pay tax and duty on goods that would otherwise be paid by the customer before delivery, UK seller uses trusted partners to a) provide support in registering and completing tax returns, or b) completely take care of EU VAT compliance instead of the seller, to simplify the process for collecting and paying VAT on B2C items with value up to 150, Saves on third party costs and often uses in-house tax expertise or resources, Full and accurate electronic customs data is required for IOSS and DDP, Items without full and accurate data will be sent / delivered as DDU. (b) What support would taxpayers require for the proposed repayment solutions, including increased awareness of Personal Tax Account, information about more significant changes to the repayment process, communications to better direct and support repayment recipients, and additional self-service guidance/support provision requirements? 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. Participants who had experienced any issues in their repayment journey, and especially those who had called HMRC or felt confused about the reason for repayment, were more likely to feel it was important for taxpayers to have a record of the information, to be able to track the repayment in case of delay. Your repayment will go direct to your bank account if HMRC has your bank details. 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. The findings in this report reflect the attitudes of participants at the time it was conducted. 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. 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. INTL Business-NPC-Sgn-LLTR, MP0 (zero) Proactive and capable withdrawers did not suggest any changes to the level of support they receive. 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. Editor, Marcus Herbert. 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. 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. 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. 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. The tax rebate system's a little clunky in places, but RIFT's on-demand, 1-on-1 service means you'll never get lost or lose out. On reflection, participants were willing to confirm their bank details with HMRC and proposed that HMRC could suggest the bank details they thought were correct for the repayment recipient to confirm, for example by sharing the last 4 digits, avoiding the need to enter any bank details or log into a secure site. Take a look at the Frequently asked Questions and their answers to help you find the right solution for you and your business. (Payable order, 18 to 29, Less than 100). These charges will depend on the country you are sending to, the value and nature of the item (e.g. Taxpayer experience of the HMRC repayments process Tax repayment? What is this? | Mumsnet The best way to speed up your RIFT Tax Refund is to get your Authorising your agent (64-8) form back to us fast. 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 must also show they are commercial items (i.e. If you're worried about how long it takes to get a tax refund, there are some things you can do to speed up the process. payment for a previous tax year), Income Tax that is deducted from a salary; this is how most employees pay Income Tax, An electronic government portal that allows individuals to track their tax records, A way of reporting income and paying tax to HMRC; it is usually for people and businesses who have income that cannot be automatically deducted from wages, pensions and savings, A form that is used to generate a repayment from HMRC, such as Income Tax overpayments, expenses and pension-related taxes, A code to describe to employers how much tax to deduct for an employee paid under the PAYE scheme, Letter sent to old address, email delivered to spam folder, Miss the Personal Tax Account sections, do not understand what a Personal Tax Account is and ignore, put it off or choose to do nothing, set up Government Gateway ID, set up Personal Tax Account, use existing Personal Tax Account, Cannot retrieve Government Gateway ID details, cannot provide documentation, Had Personal Tax Account for tax affairs prior to receiving repayment notification, vigilant financial managers with extensive knowledge of tax and HMRC processes, digitally confident and regularly used financial management apps including online banking, Limited knowledge of Personal Tax Account, tax affairs and of HMRC processes, young and digitally savvy, not very proactive with financial management, Generally distrustful of online services and processes, limited understanding of tax affairs and not confident in being able to identify online scams, or became vigilant as a result of experiencing an online scam, Limited internet connection at home due to finances or basic digital skills, no use of banking apps / online banking, unfamiliar with HMRC digital processes such as the Personal Tax Account, Found Personal Tax Account process cumbersome and dropped out of process, eager to understand more about tax affairs but did not consider themselves particularly knowledgeable, though generally digitally literate, Overwhelmed by financial matters and did not consider themselves financially knowledgeable, but could use apps for the most part, viewed repayments process as HMRCs responsibility and were unwilling to be more active in the process, Reduce phone wait times with phone and online chat bots, Anything automated and received as a lump sum, Simplify or even automate ID verification (face recognition), Enhance assurances that Personal Tax Account website is genuine and not a scam, Require education about salary repayments and role of employer, Send official letters and emails that can be authenticated, Continue offering phone support for tax affairs, Provide ongoing phone support and send both letters and emails to make sure notifications are not missed, Simplify or even automate ID verification, Use banking app or create app with face recognition technology, Provide education about tax code changes, but continue to send letters or emails, Make the Personal Tax Account information on repayment notification more salient, Continue sending official letters and payable orders, Provide more information about tax code changes. It provides a breakdown of tax owe and tax paid and is only issued if too much or too little tax has been paid. 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. This means the data requirements will change in areas including HS codes and duty and VAT rates, as well as having implications for prohibited and restricted goods screening. If you're claiming your tax refund through RIFT, HMRC will send a payable order to us. If you need help calculating VAT and customs duties then our partner, Hurricanes Aura service can do that in your checkout. It will take only 2 minutes to fill in. 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. Specific feedback is presented below, and the solutions have been ordered by participant preference: Authorising payment through a banking app: For more digitally confident taxpayers, the idea of using their own banking app aligned with their current behaviour and comfort authorising payments for other services. Just provide your IOSS number and full customs data in the pre-advice you send us. For items valued over 150, and for sales with any value to business customers, IOSS cannot be used so DDP is a solution that has a lower handling fee than DDU. Sale of goods). Instead, you can make use of the One Stop Shop (OSS) which is another EU VAT scheme that allows you to declare and pay VAT on all sales into the EU by submitting a single quarterly EU VAT return. It's a lot like a cheque, and is either sent to you or directly to your bank. From Monday 7 November 2022 we have changed our PDDP undeliverable process. However, digital by default customers did suggest HMRC should provide more education around tax and the role of the customer in managing tax affairs. 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. The impact of Brexit and COVID19 has seen an increase in banks/countries no longer accepting payable orders. A payable order is one of the ways HMRC pays out tax refunds. HMRC launches 'potentially game-changing' IR35 review Following the generation of hypotheses, a discussion guide was developed to explore in each interview contextual factors, experiences of the repayment process, suggestions for an improved repayments journey and any improvements to HMRC communication and support. Those in the proactive group felt strongly that it was not their responsibility to claim the payment, but rather HMRCs role to correct an error. We have three options available to help you manage these changes depending on the size and nature of your business. Firstly, the sampling presented some issues for the range of views that were initially collected. Even if they did receive it, taxpayers did not always read their repayment notification letter thoroughly. This section explores the findings for research objectives 1 and 2, namely the facilitators of and barriers to taxpayers claiming via BACS online, as well as participant suggestions for improving the repayments process. We monitor HMRC response times on a weekly basis and will keep you informed of the status of your refund throughout the process. 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. In Portugal this is known as the Nmero de Identificao Fiscal (NIF) - for individual people and the Nmero de Identificao de Pessoa Coletiva (NIPC) for companies. Therefore the quicker you get these signed and sent back to us, the quicker we can progress your claim. HMRC payable order to bank? MoneySavingExpert Forum Our international services that take care of VAT and customs duties prior to delivery, Whatever your business size, you could get your business going with a business account if you send 20 parcels a week or more, Grow your business with our marketing tools, advertising mail and data optimisation services, Convenient ways to manage your deliveries and collections, and streamline your mailroom, If your entire business is moving, or just part is relocating, we can redirect your mail for you, Get the latest business advice, tips and ideas with our guides and insights. This research drew on a qualitative research methodology to gain deep and rich insights into experiences of the repayments process and to co-create new solutions. To this end, some suggested that communications could include advice about how to avoid overpayments in future, linked to the reason for overpayment. You can register and file your own tax returns or we can assist you to do so. It can also be used for items with value up to 150 if IOSS is not suitable for you. After youve had your refund, you can call us any time with questions about your tax. Check our calendar of key self-assessment dates and deadlines and make sure you're not caught out. 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). Motivation barriers to claim online could relate to a lack of trust in online processes and the security of online transactions. Proactive participants also liked simplicity and that it required minimal input from the repayment recipient. No parcel can be heavier than 2kg. This is very similar to a traditional cheque and can either be posted directly to you or to your bank to process. How the Pay As You Earn system works - an employer's perspective 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. Three transformational solutions were tested with participants: the option to authorise payment via taxpayers own mobile banking apps; payment into the account in which taxpayers receive their salary; and changes to tax codes. There are several ways you can access IOSS. 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. Dont include personal or financial information like your National Insurance number or credit card details. The EU's Import One Stop Shop (IOSS) can help you start, or continue, trading from GB into the EU. You can send items of Large Letter and Parcel Format dimensions (see format specifications below). A facilitator relating to taxpayers capability was familiarity with the online repayment process. There are actually lots of reasons why you might have to claim tax back from HMRC. If you submit your claim close to these time periods then it is likely that it could take a bit longer to be processed and paid, so if you can avoid doing so it would greatly speed up the whole process. If you get an email about tax rebates that seems to be from HMRC, watch out! While they had intended to continue the process later on their computer or when they had more time, these participants sometimes forgot to return to it before they received a payable order. IM0123456789. We have actively put in place a range of actions in our operation, where possible, to check item presentation and data. 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. We will help you gather all the information you need, prepare and submit your claim. When we receive your refund from HMRC we take out our fee and then pay it the refund to you. In those cases, it'll usually involve a cheque or bank draft. So, what are you waiting for? Passive participants in particular either did not understand the section of the notification relating to the Personal Tax Account, or else missed it completely having read the notification backwards and having focused on their repayment amount. This service calculates all import Duty and Tax chargeable at the checkout. If you've paid too much tax, your P800 will explain what you have to do to get it back. A simple 'pay-as-you-go' option where Taxamo acts as the electronic interface for you - allowing you to use its IOSS number to send parcels to consumers located in the EU. For example, you might be owed a tax refund if: It can also make a difference if your personal circumstances change. Those with lower confidence and who did not feel confident or safe engaging online, specifically those with low online trust, digitally limited and members of the passive profiles, tended to want more communication and favoured a belt and braces approach: they wanted to receive an email and a letter for each stage along the journey. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. The PTA sounds complicated, just another online thing that I wouldnt particularly need. To identify specific Country requirements, please visit our individual country pages. If dispatching goods from Northern Ireland to EU you can use the One Stop Shop (OSS).
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