(j) Was the repayment via payable order/cheque? The primary sampling criteria for the research was the method of repayment. Findings were analysed using a framework for understanding behaviour, the COM-B model. The HMRC OSS registration portal can be found here. Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. 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. (Payable order, 18 to 29, More than 600). 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. Just search for 'RIFT Tax Refunds' in the app store. On the whole, participants were quite satisfied with the repayment process they had experienced and, unless they had encountered a problem, did not feel that there was an urgent need to change the system. Whichever IOSS solution you choose, Royal Mail can take your items and ensure they get delivered across the EU without delay. 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. 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. Just provide your IOSS number and full customs data in the pre-advice you send us. While past experience of a repayment meant that participants felt more comfortable with the process, experience could serve as a motivational barrier as repeat recipients of a repayment tended towards claiming via the same method they had used before. VAT: Credit notes what are they and how are they treated? or visit HMRC Trade Tariff tool with more information, in order to minimise delays through customs or items being returned to sender. 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. In some cases, your tax rebate will happen automatically. Tax refund if you're employed under PAYE: 30% of refund claimed + VAT (minimum fee 50+VAT), CIS Tax Refund including tax return 275+VAT, Self assessment from 95 + VAT (call us on 01233 628648 for a quote). (a) What are taxpayers communication preferences, including form, content, frequency? Changes to tax codes: This was the least preferred option across the sample, and the least understood. This was because the arrival of the P800 meant that HMRC already had the right address, and participants felt there was minimal risk of someone else being able to cash a cheque that was in their name. It's a complete overview of the taxable income you've made and the costs of doing business you've faced. Unless you prove to HMRC what you're owed, though, the taxman won't have the information he needs to settle up. I did not have everything I needed to sign up or login. Each month hundreds of payable orders issue to VAT payers are returned to HMRC undelivered, which suggests that the businesses and individuals cannot then be traced. Overall, participants did not want a great deal of communication from HMRC during the repayments process. 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. HMRC will refund the amount left after you've repaid the tax you owe, either: to the original payment card; as a payable order, to your registered company address; When HMRC will pay you interest. You have accepted additional cookies. Remember that you can claim for the last 4 tax years and you can make your claim at any time. Those in the proactive group noted that they would have preferred to have avoided repayment by cheque and would have gone online if they had known it was an option. Linked to this, those with negative experiences of fraud in the past were concerned about the authenticity of the P800 notification, especially if they were unclear about the reason for the repayment. The research was framed by 4 primary research objectives: To understand the experience of the current repayments journey for different types of taxpayers, To explore taxpayer views about what a better repayments taxpayer experience could look like, To understand how taxpayers respond to proposed transformational solutions, To understand how taxpayers want to be communicated with and supported to maximise positive engagement with potential new repayments processes and services. Less commonly, participants sought to avoid cheques as they had experienced issues with their postal service since COVID-19 lockdowns. 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. VAT: HMRC to end making payable orders to NETPs 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. There were 2 main reasons for the unpopularity of changes to tax codes as a solution. DDP is available to a limited, but growing, list of EU destinations. For further details see our Frequently asked Questions page. 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. Participants with low confidence and digitally limited customers tended to want more communication and wanted to receive an email and a letter for each stage along the journey. Want to chat to a member of our team? It's annoying, but it's all about protecting you. 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. 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. This was particularly true among proactive participants who felt that the money was owed to them, though participants generally felt it was fair for the repayment to be made without delay, and for them to be in control of the money. Due to the time lapse between the repayment and the date of interview, stimulus materials were used, which comprised copies of the P800 notification letter and screenshots of the Personal Tax Account interface, to re-immerse interviewees in their repayment journey. For example, you might be owed a tax refund if: It can also make a difference if your personal circumstances change. Some further advice when shipping, using the IOSS option, to the Republic of Ireland 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. Across the responses to the ideas, and aligned with their suggestions for improvements, participants valued automation where possible, transparency and a lump sum payment. HMRC launches 'potentially game-changing' IR35 review Participants wanted to feel in control of the repayment money, and to be given direct access to it, rather than to receive it in smaller amounts spread across the year. While participants were willing to be involved in the authorisation of the payment, they preferred that to be the extent of their involvement. We are continuing to work with the Swedish Post and will provide an update once this issue has been resolved. 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. We will help you gather all the information you need, prepare and submit your claim. Motivation barriers to claim online could relate to a lack of trust in online processes and the security of online transactions. You can send items of Large Letter and Parcel Format dimensions (see format specifications below). INTL Business-NPC-Sgn-LLTR, MP0 (zero) 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. HMRC to phase out government cheques for VAT refunds 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. For lower amounts, participants tended not to mind waiting several weeks for the money, whereas participants were more motivated to access larger sums sooner. Under the size of 381mm x 305mm 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. Prepared by Kantar (Matthew Holt, Asma Ali Farah, Emily Fu) for HMRC. 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. Customers must take independent advice on eligibility for use of IOSS or DDP. As a result, HMRC commissioned research to collect taxpayer feedback to inform these aims. It just needs to be as minimal as possible. HMRC will try and pay out refunds using a payable order within 5 weeks, but it can often take a lot longer depending on their . HMRC Payments Strategy | Tax Adviser commercial goods or gift). 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. (a) What do taxpayers need in relation to the repayments process including information, timeliness, ease, choice, transparency, trust? It's worth making sure you get back what you're owed, too. 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 actually lots of reasons why you might have to claim tax back from HMRC. To help us improve GOV.UK, wed like to know more about your visit today. All you have to do this think about how to spend it! The PTA sounds complicated, just another online thing that I wouldnt particularly need. Some participants were also confused about whether repayment via PAYE would mean that the repayment would be subject to tax. We'll be able to give you an estimate of how long it will take to get your tax refund when your claim begins. You have more than one job and aren't getting the full value of your tax-free Personal Allowance. On average, it can take HMRC up to 12 weeks to process a tax refund claim. 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). This meant that these participants had low motivation to take action, defaulting to repayment by payable order. On this page we tell you more about how PAYE tax and National Insurance deductions work. This research was conducted in partnership with HMRCs Behavioural Insight team to conduct a behavioural diagnosis of the current repayment journey, namely why only a minority of taxpayers request repayment via BACS through their Personal Tax Account, and consider possible behaviourally informed changes to communications and the repayment process. If you dont use Taxamo Assure and you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. 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. 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. From Monday 7 November 2022 we have changed our PDDP undeliverable process. The amount of time it takes for a tax refund claim to be processed and then paid is typically between 8-12 weeks. Well send you a link to a feedback form. They can also receive a payable order by post by taking no action for a period of 21 days. VAT What records must be kept by a business? A HMRC dataset was used to identify taxpayers that received a repayment in June to July 2021 or December 2021 and whether they were repaid via BACS (online or phone) or via payable order. Get a refund or interest on your Corporation Tax - GOV.UK It may take anywhere up to 12 weeks for them to work through your claim and approve it, but then the payment should arrive between 3-5 workings days depending on whether you want to be paid via a bank transfer or via a cheque / payable order. You can do this by using Aura from Hurricane. While knowledgeable taxpayers usually found it straightforward to understand, those in the passive group had not engaged with the detail of the letter, and often misunderstood the key messages (even during the research testing). Royal Mail has also developed two solutions for sales you make through your own checkout that may suit your business. Dh has a letter today which is headed tax calculation and says this letter shows a tax repayment due (for a year in which he was made redundant). HMRC's OSS guidance can be found here . 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. If you register yourself for IOSS, you will need to calculate the landed costs of your goods. This is a hassle-free pay as you go option where Taxamo acts as the deemed reseller, You use Taxamos IOSS number to send items to your customers in the EU, You pay a 2 per item which means you dont have to register or file for EU tax (Taxamo does all that for you), You pay to register you for IOSS, so you can send items using your own IOSS number, Using sales and tax data from your system will prepare and file the VAT returns for you, You pay one off fee for registration (300), plus annual fee (2000) for tax returns, This is a great hassle-free solution for smaller senders of under 3000 parcels a year to the EU, To avoid the VAT management overhead - calculation, registration, filing and remittance, To transfer the VAT liability risk - penalties and late fees - to third party, Streamlined customer journey with seamless VAT compliance integration from checkout to delivery, You want to send higher volumes of EU items (3000+ a year) with a reduced cost per item and lower perceived tax risk, You are prepared to install or already have tax IT systems needed to calculate the VAT on sales to different EU countries, You can dedicate operational resource to managing the tax, You are sending a high volume of items (at a certain volume its likely to become cheaper to register and manage your own returns), You already have the in-house capability and expertise to register and file for IOSS independently, You only sell to the EU through marketplace(s), You only send a small number of items each year, You already have the capability and expertise to register and file for IOSS independently. In HMRC's language, a tax rebate is "a refund on taxes when the tax liability is less than the taxes paid". There are 2 key limitations to keep in mind when reading this report. 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. 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. As it was so often a reason for taxpayers to give up claiming via their Personal Tax Account, participants suggested improvements to the Government Gateway log in process, such as making it easier to reset forgotten passwords. We don't as a general policy investigate the solvency of companies mentioned (how likely they are to go bust), but there is a risk any company can struggle and it's rarely made public until it's too late (see the. Participants who had successfully claimed via their Personal Tax Account previously (and had not experienced any issues), were happy to do so again, and participants who had been told about the option to claim online (by a colleague or family member) were likely to use a Personal Tax Account to claim. 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. This view contrasted with a perception among less tax savvy participants who felt the money was an unexpected bonus, viewing the repayment system as a passive savings account. 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. ''Temporary'' here just means it's somewhere you're working for less than 24 months on the trot. 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. I spent 4 days trying to find the right documents and trying to login. Collect VAT (and duties if applicable) on from your EU customer in checkout and RM will invoice you for it, at a later date, along with a handling fee. Information requested on the Gform will include: email: marcus.ward@consultant.com We'll deal with HMRC for you. 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. Proactive, digital by default and capable withdrawers all expressed a preference for a higher degree of automation at HMRC. When you claim your tax rebate with RIFT, our unique RIFT Guarantee means that you don't have to worry about the taxman reclaiming any of your money. While there was an expression of discomfort with HMRC having their bank account details, participants typically had high trust in HMRC and were unconcerned about sharing this information. Research conducted by Kantar between March and May 2022. Participants who felt confident engaging online with HMRC were happy for subsequent communications from HMRC to be minimal. For this reason, the idea of a banking app was regarded as easier and more secure than entering bank details online. We have three options available to help you manage these changes depending on the size and nature of your business. 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. These participants suggested that the benefits of the Personal Tax Account could be made more salient to motivate passive participants to seek their repayment via BACS online, with the main benefits being perceived as the speed of the repayment and ability to control and update their address and bank account should they change. If this happens and a customer is overcharged in this way, they can contact Swedish Customs to claim it back. 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. It provides a breakdown of tax owe and tax paid and is only issued if too much or too little tax has been paid. You just need to assign the right IOSS registration number to each item in the pre-advice (along with all the normal customs data) you give to us. We also use cookies set by other sites to help us deliver content from their services. For more digitally confident participants, the idea of using their own banking app aligned with their current behaviour and comfort authorising payments for other services. If we're already handling a travel refund claim for you, for instance, we'll take care of any other rebates you might be owed at the same time. Payable Order / PO: 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 . Find out about the Energy Bills Support Scheme, Accounts and tax returns for private limited companies, File your accounts and Company Tax Return, other tax your company owes, for example PAYE or VAT, your next Corporation Tax bill or a late filing penalty (if you do not enter a repayment limit when you submit your next Company Tax Return), as a payable order, to your registered company address, paid tax early (known as credit interest), paid more than your company owes (known as repayment interest), when you paid the tax, if you paid after the due date, the date your balance goes above what you owe. It should be noted that proactive participants reported not having any difficulties moving through the sign up and verification processes, and low online trust, digitally limited and passive participants did not get as far as attempting to engage with the process at all. In particular, those in the proactive group and capable withdrawers sought additional forms of automation to remove barriers and reduce the hassle involved in reclaiming. At RIFT Tax Refunds, we'll check in with HMRC regularly during the process, provided you've signed a 64-8 Authorising Your Agent Form but you can also track your tax rebate progress using the RIFT Tax Refunds app. 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. Don't give any personal information via email, don't follow any links and don't open any documents or other attachments you get. Ultimately, participants wanted access to the money with minimal delay, either because they felt strongly that it was owed to them and that it was right that they had it as soon as possible (proactive), because they wanted to invest the money as soon as possible (proactive), or conversely, being low on funds and wanting the money to cover everyday expenses or debts (passive and digitally limited). 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. If you are not due a refund then there is no charge.Before we send your claim to HMRC we sent a copy to you with a full breakdown of all the fees so you can clearly see:The total refundThe cost of our serviceThe VAT due (VAT goes to the government, it's charged on almost all goods and services)The amount you will receiveYou will need to sign and send this back to us to say you have read, understood and agreed with it, along with a declaration that all the information you have provided about your claim is true. 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. The sort of documentation we may require will depend on the type of claim you are making, but can include receipts for work expenses/petrol, records of subscription payments and so on. 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. You will need to apply to HMRC for a refund of the UK import VAT (and customs duty, if any) incurred on re-importation will be the responsibility of the Sender and if foreign import VAT / customs duty have been incurred on the items when entering the EU, the seller or the Recipient will have to apply to the foreign customs authorities for a refund of those charges. 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. 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. You can change your cookie settings at any time. Solved: Paying HMRC - QB Community 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. Without 2 physical copies of your 64-8 document, HMRC won't even speak to us about your claim. Capable withdrawers in particular reported lacking motivation to persevere with sign-up or the authentication process if they encountered difficulties. Digital by default and proactive participants found the Personal Tax Account set-up or sign-in process to be simple, straightforward and in line with their expectations in terms of the time and effort involved. 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 more accurate the information we have to present to HMRC, the quicker it will all get accepted and refunded. When you're owed a HMRC tax refund, it's because you've already paid too much tax. 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. The greatest single dimension must not exceed 900mm but must be at least 100mm For IOSS and DDP the existing international prohibitions and restrictions apply. The sample included participants whose P800s were dispatched in June to July or December 2021, and who may also have had multiple interactions with HMRC, which weakened their ability to reflect in-depth on their repayment journey. 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.