There are 2 key limitations to keep in mind when reading this report. Government Banking - GOV.UK This is operational now to Germany, France, The Republic of Ireland, The Netherlands, Portugal, Austria, Cyprus & Malta. This research report outlines the research aims, methodology and findings from these interviews. Id be less likely to claim online if its a long or a hard process, if I had to fill out loads of information. Key in the number in this format to ensure that it is recognised. If you've underpaid, HMRC will explain how they'll claw the money back. There are several ways you can access IOSS. There are no up front charges to pay for anything. The same is true for DDP although in addition you will need to calculate and collect Customs Duty on items valued 150 or more. Capable withdrawers in particular reported lacking motivation to persevere with sign-up or the authentication process if they encountered difficulties. Nurses' strike: Health secretary Steve Barclay urges union to call off Well send you a link to a feedback form. 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. All you have to do this think about how to spend it! It's not just about your expenses, either. 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. 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. For sales where Taxamo is the electronic interface, there is no need for you to register for IOSS and file tax returns. It's worth making sure you get back what you're owed, too. This service calculates all import Duty and Tax chargeable at the checkout. We often link to other websites, but we can't be responsible for their content. We'll keep you up to date every time the status of your claim changes and even give you an expected pay out date so you'll down when you're getting your cash. The findings in this report reflect the attitudes of participants at the time it was conducted. 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. These are explored in detail below, along with barriers experienced by particular taxpayer groups. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. Sale of goods). When you're owed a HMRC tax refund, it's because you've already paid too much tax. The best way to speed up your RIFT Tax Refund is to get your Authorising your agent (64-8) form back to us fast. The impact of Brexit and COVID19 has seen an increase in banks/countries no longer accepting payable orders. 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. 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. In contrast, the main facilitators to taxpayers claiming their repayment via online BACS included: digitally confident taxpayers tended to automatically opt to claim their repayment via the Personal Tax Account and those who were also knowledgeable about tax affairs found the Personal Tax Account set-up or sign-in process to be simple, straight-forward and in line with their expectations, taxpayers who had successfully claimed via Personal Tax Account previously, and had not experienced any issues, were happy to do so again, and taxpayers 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. 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. 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. Your item will be handled Delivered Duties Unpaid (DDU). 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! To help us improve GOV.UK, wed like to know more about your visit today. 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. They were generally quite satisfied with the level and format of communications that they had received, with the exception of those who did not receive their repayment notification or had issues with their repayment. 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. Please check our International Incident Bulletin Page for the latest service updates and advice when sending items. Get started on yourtax rebatetoday. HMRC will refund the amount left after youve repaid the tax you owe, either: The interest is taxable - include it as income in your Company Tax Return. (f) What is their awareness of the Personal Tax Account in general and as an option for processing tax repayments via BACS? An underlying motivation barrier to claim repayment via BACS, common among passive repayment recipients, was inertia and the existence of a default option. 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. Numerous calls to hmrc and natwest later, it turns out Hmrc have sent a cheque not to my branch but a customer service office in Leicester. A cheque is easier, more straightforward. Prepared by Kantar (Matthew Holt, Asma Ali Farah, Emily Fu) for HMRC. I think I just had to wait to get it into my bank account, whereas if you wanted it by cheque you had to contact them. This was particularly the case among older participants in the passive group. I spent 4 days trying to find the right documents and trying to login. When you're paying your own way to temporary workplaces, the odds are good that you're owed some tax back for your expenses. 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. The EU's Import One Stop Shop (IOSS) can help you start or continue trading from GB into the EU. There were no dropouts observed once a taxpayer had successfully set up and/or logged into their Personal Tax Account. However, less trusting participants were interested in receiving notifications at future points in the journey. All you need to do is to pay a fee per parcel and Taxamo Assure will do the rest including calculating tax within your checkout. We will help you gather all the information you need, prepare and submit your claim. Participants in the proactive group tended to be most motivated to claim their money quickly, for example so they could invest it, and participants on a low income were also more motivated to access the money quickly. See below for further details. (b) What are their overall reflections of their experiences of the repayment process? HMRC. Without 2 physical copies of your 64-8 document, HMRC won't even speak to us about your claim. A Large Letter (formally known as Flats) is considered as anythingthat is: Over the size of 140mm x 90mm Its easy to use, doesnt require me to be kept on hold for a long time, I can do it in my own time, (BACS Personal Tax Account, 18 to 29, More than 600). 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. 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. If you want further detail a line level view can be accessed via our, For DDP Tax is at the rate set in the destination country, eg. There were 2 main reasons for the unpopularity of changes to tax codes as a solution. 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. The table below excludes self-claim repayment recipients, who had proactively contacted HMRC for a repayment before a repayment notification would have been issued. (Payable order, 18 to 29, Less than 100). The PTA sounds complicated, just another online thing that I wouldnt particularly need. what is a payable order from hmrc - core-g.com A facilitator relating to taxpayers capability was familiarity with the online repayment process. (e) What are the key triggers for customer support service use and the outcomes sought by taxpayers? Therefore the quicker you get these signed and sent back to us, the quicker we can progress your claim. Id rather have all the money sent to me in one go so I can use it however I need to use it. 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. 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. If you register yourself for IOSS, you will need to calculate the landed costs of your goods. 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. payment for the current tax year) or to a taxpayer who makes a deferred claim (i.e. 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. The earliest date theyll pay interest from is 6 months and 13 days after the start of your accounting period. It should NOT then be recorded as an expense. While the most tax knowledgeable participants had experience of HMRC amending their tax code to manage an overpayment or underpayment in tax in the past, which they had no issue with, the idea was not appealing as an alternative to the repayment process being discussed. (Personal Tax Account BACS, 18 to 29, Under 100). You can find more information about these changes here, that the European Commission has published and here is further guidance provided by the UK Government on these changes. 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. Customers must take independent advice on eligibility for use of IOSS or DDP. 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. 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. 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. 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. A PO is sent to a taxpayer who makes an in-year claim (i.e. How Long Does A Tax Refund Take? | Tax Back | RIFT Refunds HMRC will never contact you by email for things like this. They were also more likely to say that they would like to confirm their bank details on the phone with HMRC. 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. In Sweden there is currently a further short-term complexity. This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. 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. There are 3 main ways in which Income Tax overpayment is administered. 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). 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. (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? See below for further details. You have accepted additional cookies. In general, participants who felt confident engaging online with HMRC, specifically members of the proactive, digital by default, capable withdrawers and certain passive profiles, were happy for subsequent communications from HMRC to be minimal. They've got their own procedures. 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. As an alternative to DDU and IOSS, we have developed a Delivered Duties Paid (DDP) service. 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. 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). The model theorises that 6 components drive behaviour: psychological capability (such as comprehension and reasoning), physical opportunity (such as time and resources), social opportunity (such as interpersonal influences), reflective motivation (such as evaluations and plans). Once they give us the green light and confirm the total, we take our fee and get the money to you within 3 working days. 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. There are actually lots of reasons why you might have to claim tax back from HMRC. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. 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. You'll never have to phone them or reply to their letters yourself. Firstly, the sampling presented some issues for the range of views that were initially collected. Additional capability barriers related to low digital skills, a lack of mental stamina to see the Personal Tax Account sign-up process through as well as low awareness of the repayment process. You could be falling for a scam. HMRC issues a high volume of P800 tax overpayment notices to taxpayers each year (around 3.5 million in 2021). The best way to speed up your tax rebate claim is to make sure you dont submit it during HMRCs typically busy periods. A payable order is one of the ways HMRC pays out tax refunds. 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. It's much more cost-effective to make payments electronically but when that's not. 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. 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. The HMRC OSS registration portal can be found here. Proactive, digital by default and capable withdrawers all expressed a preference for a higher degree of automation at HMRC. Intl Bus Parcels Tracked Extra Comp, MTO (oscar) Youll be refunded the amount left after you have repaid the tax you owe. 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. VAT: Credit notes what are they and how are they treated? 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. 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 order, 18 to 29, More than 600). You can also use our tax refund calculator to see how much you are due if you do make a claim. To register for an EORI number visit https://www.gov.uk/eori for more information. 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). Both the digital by default and capable withdrawer groups suggested that the Government Gateway and Personal Tax Account sign up processes need to be simplified. Get a refund or interest on your Corporation Tax - GOV.UK 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. As soon as your refund's paid out, we'll either send you a cheque or pay it into your bank account if you prefer. Those customers should declare which of these marketplaces their items were sold on, when presenting them at the Post Office counter, and the Post Office branch will capture this information. Participants who felt confident engaging online with HMRC were happy for subsequent communications from HMRC to be minimal. Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. You can do this by using Aura from Hurricane. After youve had your refund, you can call us any time with questions about your tax. size, scale and maturity of your business). That usually takes around 2 weeks to come through. 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. Your repayment will go direct to your bank account if HMRC has your bank details.