This is operational now to Germany, France, The Republic of Ireland, The Netherlands, Portugal, Austria, Cyprus & Malta. Following participation in the interview, participants received an incentive to thank them for their time. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk. You can either register, via an intermediary, and file your own tax returns, or we can assist you to do so, via the new IOSS Registration and Filing Service detailed below. (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? If dispatching goods from Northern Ireland to EU you can use the One Stop Shop (OSS). 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. 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 caseload and the complexity of your claim. The HMRC OSS registration portal can be found here. Get started on your, This is a hidden field to pull through the name of the page where the form was submitted from, The best way to speed up your RIFT Tax Refund is to get your, In HMRC's language, a tax rebate is "a refund on taxes when the tax liability is less than the taxes paid". HMRC issues a high volume of P800 tax overpayment notices to taxpayers each year (around 3.5 million in 2021). Principally, respondents from these 2 profiles would prefer a level of automation in the verification process, including facial recognition technology. 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. 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. One of the ways HMRC pays out tax refunds is via a payable order. 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. Speak to us 6 days a week. If you are selling goods on other marketplace places you can use the Royal Mail Click & Drop service where you will find instructions how to do this. Editor, Marcus Herbert. The EU customer receives their product without interruption before delivery, Support you in registering and filing tax returns for IOSS for a fee/subscription OR, Take care of VAT at point of sale and pay VAT obligations under the partners IOSS number, Can help you to keep costs appear low at checkout, Marketplace takes care of VAT (for B2C items up to 150) and IOSS number, Useful if you have sales of goods over 150 or sales of any value to businesses, Simplifies the process of filing and registering for VAT/IOSS and ensures calculations are correct, Option for a pay as you go solution to be hands free of VAT, Peace of mind if wanting to register yourself for IOSS and file for VAT, Unexpected costs for your EU recipient (VAT and handling fee), Customers can refuse to pay and item is returned, Specialist understanding and time is required to manage returns (handling enquiries with tax authorities, choosing where to register and file, deciding on an intermediary), Doesnt cover items over 150 or items of any value sold to businesses, Need to increase prices to cover the cost of VAT, Can be non-cost effective for low value parcels, Can be difficult to obtain a VAT refund when goods are returned, Requirement to complete VAT returns yourself (the returns would not be done for you but checked), unless pay-as-you-go solution is used, Higher cost of business if choosing a pay as you go per parcel option (but no requirement for tax return filing). This was the least preferred option across the sample. We will help you gather all the information you need, prepare and submit your claim. commercial goods or gift). 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. Consequently, HMRC were sending repayments to NETPs with the knowledge they may not be able to cash them. 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. 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. Email is tricky since usually 99% of the time its an email from HMRC its a scam. They were also more likely to say that they would like to confirm their bank details on the phone with HMRC. 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. 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. 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. You dont want it to come across youve suddenly had this inheritance come from HMRC. 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. (Payable order, 18 to 29, More than 600). 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. Don't give any personal information via email, don't follow any links and don't open any documents or other attachments you get. On January 1st 2022, the World Customs Organisation (WCO), an independent intergovernmental body that serves as the voice of the customs community, implemented the 7th edition of its Harmonised System. DDP is dependent on the overseas delivery Post or partner being ready to accept and process. However, participants were more likely to be familiar with the Government Gateway and often used this language to talk about the log-in process. What is a HMRC 'payable order'? 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. 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. 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. 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. Cognitive interviewing techniques were used to understand how different aspects of the process influenced thoughts, feelings and immediate behaviours. Nurses' strike: Health secretary Steve Barclay urges union to call off 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. 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. It wont cost you a penny. 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. If you dont use Taxamo Assure and you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. A letter notifying a taxpayer that the wrong amount of tax has been paid. If you don't want to register yourself, we have Taxamo Assure - an innovative pay-as-you-go solution. If the taxman realises that you've paid the wrong tax, he'll send you a P800 tax calculation to tell you. 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. Youll be refunded the amount left after you have repaid the tax you owe. However, they suggested several minor improvements they felt would streamline the repayments process. 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. Should automatic repayments to taxpayers bank accounts not be possible, and the Personal Tax Account still be necessary to claim online, participants suggested streamlining the Personal Tax Account sign up process. VAT What records must be kept by a business? 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. If you get an email about tax rebates that seems to be from HMRC, watch out! There were no dropouts observed once a taxpayer had successfully set up and/or logged into their Personal Tax Account. One of the ways HMRC pays out tax refunds is via a payable order. We can work out if you would be due a refund and let you know what the fee would be. As well as providing electronic data you will need to complete a customs declaration form (CN22 or CN23) for items of non-personal correspondence/goods sent abroad which must be attached to the outside of your item. Participants who were willing to use online and mobile banking, but who were less familiar with doing so regularly, still felt this was a good option and would be interested in trying it if there were clear instructions for how to do so. 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. How Long Does A Tax Refund Take? | Tax Back | RIFT Refunds 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). Motivation barriers to claim online could relate to a lack of trust in online processes and the security of online transactions. HMRCs OSS guidance can be found here. The EU's Import One Stop Shop (IOSS) can help you start or continue trading from GB into the EU. Universally, participants preferred the option of receiving the money as a lump sum rather than paid across the year. We are continuing to work with the Swedish Post and will provide an update once this issue has been resolved. Forty one-to-one online and phone interviews were conducted that were between 45 and 60 minutes in length, taking place between the 21 March 2022 and the 3 May 2022 . Intl Bus Parcels Tracked Extra Comp, MTO (oscar) If these items are sent to Italy via IOSS, the overseas recipient may be charged VAT. 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. Findings were analysed using a framework for understanding behaviour, the COM-B model. Well send you a link to a feedback form. For DDP Businesses will need an Economic Operator Registration and Identification number (EORI) to trade with EU countries (if a business has traded with non-EU countries, it already should have a GB EORI number). For further information about sending Delivery Duties Paid please see our guidepdf, 4.74 MB. See our full list of services with prices and options. 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. You can reach us on the phone or Livechat. As a result, HMRC commissioned research to collect taxpayer feedback to inform these aims. 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. As we work with HMRC on a daily basis we get regular updates and insights about their current workload so we can provide accurate estimates about expected timescales for a number of different HMRC enquiries such as tax rebate claims, changing tax codes, creating new tax accountsetc, Some other factors that can help speed up your claim include. DDP or DDU (as IOSS is only for items valued up to 150.00) the recipients 9-digit (numeric only) tax ID number must be provided in order for the item to be delivered without delay. 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. These are explored in detail below, along with barriers experienced by particular taxpayer groups. Please note:For Portugal any item valued over 150.00 (i.e. What it's, calendar of key self-assessment dates and deadlines, If you are self-employed and already have a, The more documentation you can send us, the quicker we can get the claim calculated. Participants repayment journeys varied based on the communication they received from HMRC, their engagement with the process, the actions they took and the method of their repayment. 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. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. If you pay by quarterly instalments, your interest is calculated from the later date of either: Dont include personal or financial information like your National Insurance number or credit card details. 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. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to 3,023. For IOSS it is recommended that you attach a signed commercial invoice to the outside of the items packaging, For DDP you MUST attach a signed commercial invoice to the outside of the items packaging, For IOSS and DDP the price for shipping will be charged in accordance with our standard Royal Mail International service, For DDP any taxes and customs duties (where relevant) plus any handing fee will be collected on a separate summary invoice once customs has been cleared, For DDP all taxes, customs duties and handling fees will be passed on to our customers when Royal Mail are charged them from the overseas post/parcel operator, For DDP your Royal Mail invoice will show a summary level review of any charges. HMRC payable order to bank? MoneySavingExpert Forum HMRC. If this happens it could result in your customers being charged VAT additionally on delivery along with a small handling fee. 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. Capable withdrawers in particular reported lacking motivation to persevere with sign-up or the authentication process if they encountered difficulties. Therefore the quicker you get these signed and sent back to us, the quicker we can progress your claim. (BACS Personal Tax Account, 60+, More than 600). The findings in this report reflect the attitudes of participants at the time it was conducted. See below for further details. An underlying motivation barrier to claim repayment via BACS, common among passive repayment recipients, was inertia and the existence of a default option. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. 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. (b) What are their overall reflections of their experiences of the repayment process? 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. IM0123456789. It was also important that HMRC clearly explained the reasons that an overpayment occurred. INTL Business-NPC-Sgn-LLTR, MP0 (zero) If you dont have an account, you register, which I did. 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. There were digital by default taxpayers who had attempted to sign up to a Personal Tax Account on their smartphone but had paused if they had been unable to log into their account immediately or once they realised there was an additional verification step. In many cases, they'll take care of it automatically in installments. Dont worry we wont send you spam or share your email address with anyone. We often link to other websites, but we can't be responsible for their content. 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. In addition, participants on a lower income preferred to have control over which bank account the money was paid into as, if the repayment was paid into an overdrawn account, they would be unable to freely access the funds. 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. 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. The correct marketplace IOSS number will then be allocated to your item by Royal Mail. 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. 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. Keep in touch and well keep you on the right side of the taxman, completely free of charge. or visit HMRC Trade Tariff tool with more information, in order to minimise delays through customs or items being returned to sender. 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. 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. 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). Six main taxpayer profiles emerged from the variations in repayment journeys, linked to taxpayer knowledge and experience with finances and tax affairs, their trust in online services, digital confidence and their digital access. Once you've got your rebate cash, you might consider these smart tips on how to use your tax refund or perhaps you already know what you are going to use it for. 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. You have more than one job and aren't getting the full value of your tax-free Personal Allowance. It does the heavy lifting for you. Each year, HM Revenue and Customs (HMRC) issues a high volume of P800 tax overpayment notices to taxpayers. Use your Company Tax Return to tell HMRC if you think youre due a Corporation Tax refund (known as a repayment) and how you want it paid. The system automatically issued a payable order if a NETP was due a repayment. Well send you a link to a feedback form. The chances are that you will have questions about the changes taking place in relation to EU VAT on 1 July and the options open to you. Information requested on the Gform will include: email: marcus.ward@consultant.com Participants often assumed that HMRC had customers bank details and would be able to process payments using this information. Either way, it's a great feeling to claim your money back from the taxman! Sale of goods). If your overall annual sales from NI to the EU doesnt exceed 8,818 (10,000), you can continue to charge UK VAT to your EU customers. For a full-list of updates please visit GOV.UK. VAT: Credit notes what are they and how are they treated? We monitor HMRC response times on a weekly basis and will keep you informed of the status of your refund throughout the process. HMRC tend to be at their busiest around the self-assessment tax return deadline of 31 January, and the tax credit renewals deadline at the end of July. 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. Participants were not very motivated by the idea that claiming via Personal Tax Account negated the risk that cheques might go to the wrong address. 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. I would feel a bit funny, its between me and HMRC, especially if its more money. If this happens and a customer is overcharged in this way, they can contact Swedish Customs to claim it back.
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