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. Youll be refunded the amount left after you have repaid the tax you owe. Taxpayer contact with HMRC was limited during the repayment process. You have accepted additional cookies. You have rejected additional cookies. 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. Patterns with regards to the context of respondents were used in the categorisation. In terms of the existing repayments process, this included suggestions to use online chat bots to reduce phone waiting times, and to use facial recognition features to improve the verification process for the Personal Tax Account (more on this below). The website was very persistent in getting me to login with something I never thought I had in the first place. Even if they did receive it, taxpayers did not always read their repayment notification letter thoroughly. 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. Of course, with RIFT you won't need to worry about dealing with the hassle and complexity of all this. 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. No parcel can be heavier than 2kg. 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. Check our calendar of key self-assessment dates and deadlines and make sure you're not caught out. As discussed in section 3.4, participants were supportive of changes that increased automation and minimised effort on their part, especially those who were digitally confident and capable. When you're owed a HMRC tax refund, it's because you've already paid too much tax. Received a letter on 27th April saying they were sending a payable order to natwest bank within 14 days. The system automatically issued a payable order if a NETP was due a repayment. This is operational now to Germany, France, The Republic of Ireland, The Netherlands, Portugal, Austria, Cyprus & Malta. (Payable order, 18 to 29, Less than 100). (b) What are their overall reflections of their experiences of the repayment process? You're self-employed and your payments on account are too high. 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. Wondering if you can claim a tax refund or need to submit a tax return? If your IOSS item cannot be delivered or the recipient returns the item, it will be returned to you. While what constituted a large amount was difficult for participants to pinpoint, and varied for different participants, repayment amounts exceeding 600 were typically considered large enough to motivate an online claim. HMRCs OSS guidance can be found here. It must also show they are commercial items (i.e. It just needs to be as minimal as possible. VAT: HMRC to end making payable orders to NETPs Well send you a link to a feedback form. 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. The overall aim of this research was to explore taxpayers views about the current repayments journey, drivers of a repayment claim via BACS online and to gather feedback on HMRCs proposed solutions. (j) Was the repayment via payable order/cheque? 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. Some felt that the repayment was personal information that was not appropriate for their employer to know, or worried that it placed undue burden on the employer, especially if they were in a new job and the discrepancy was unrelated to their current employers actions. 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. 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. 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. IOSS cannot be used for excise (tobacco and alcohol) products, IOSS is available with the Non-Personal correspondence products (parcel and large letter formats), DDP is available with dedicated product codes MPR for Tracked and DE6 for Untracked, Our IOSS and DDP service can only be used when full and accurate customs information is provided such as when an approved shipping solution is used, These platforms capture and generate customs data files plus automatically create the required labels to send items abroad, Royal Mail has shipping platforms such as. 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. (c) What is the experience of repayment notification communications sent from HMRC (paper and digital) for different taxpayers? AURA from Hurricane), Register for IOSS,via an EU intermediary, in one EU country to get an IOSS number, Provide IOSS number and customs data to RM in pre-advice, Account for VAT and complete monthly returns, They take care of VAT obligations (for B2C items up to 150). If IOSS isn't for you, or you are sending items above 150 or items of any value to businesses, DDP may be the answer. The full list of research questions that the research sought to address included: (a) What do different types of taxpayers understand about the repayment process? We'll deal with HMRC for you. For IOSS there will not be any charges for you. Some participants did not receive a repayment notification, and either: received a payable order (which was the first time they discovered they were due a repayment) or, proactively contacted HMRC to self-claim in year. Royal Mail has also developed two solutions for sales you make through your own checkout that may suit your business. This model frames a persons capability, opportunity and motivation as either barriers or facilitators to a particular behaviour (Keyworth et al., 2020). Further, participants felt positive about the certainty of linking the payment to their account and the ability to check for the transaction within the app. Either way, it's a great feeling to claim your money back from the taxman! The EUs Import One Stop Shop (IOSS) is a VAT registration scheme your business can use from 1 July 2021 to comply with the EUs new VAT e-commerce rules on sales from GB to the EU. Paying into salary account: This was a popular option among current PAYE taxpayers, who overall regarded it as a simple way to receive a repayment. You can change your cookie settings at any time. You could be falling for a scam. One of the ways HMRC pays out tax refunds is via a payable order. As a result, they did not think it was worth the time investment or the hassle to set up a Personal Tax Account, as they would be unlikely to need to use it again to claim a repayment in the future. If dispatching goods from Northern Ireland to EU you can use the One Stop Shop (OSS). 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. 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. Instead, HMRC would like to direct taxpayers to online BACS and other modern repayment methods and, at the same time, to improve the taxpayer experience of the repayments process. mobile: 07748 117935, VAT Informed, Independent, Indirect Tax Advice, VAT: Recovering input tax on the charging of EVs, VAT: Charging EVs ruled to be goods not services. The amount of time it takes for a tax refund claim to be processed and then paid is typically between 8-12 weeks. If they received their P800 by an email notification asking them to check their Personal Tax Account, they were reassured that the message was secure as it was hosted within their secure account. (f) What is their awareness of the Personal Tax Account in general and as an option for processing tax repayments via BACS? The best way to speed up your tax rebate claim is to make sure you dont submit it during HMRCs typically busy periods. First-time repayment recipients also face a motivational barrier to using a Personal Tax Account. All it means is the taxman doesn't know he owes you the money. 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 main stage of the research consisted of 40 online and tele-depth interviews, including 16 BACS recipients, 21 payable order recipients and 3 taxpayers who had submitted a self-claim form. Id be less likely to claim online if its a long or a hard process, if I had to fill out loads of information. 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. These charges will depend on the country you are sending to, the value and nature of the item (e.g. 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. Or you might want to consider our assisted solutions from Taxamo. It's annoying, but it's all about protecting you. I dont know enough about tax codes to be able to know if its right or wrong. COM-B is a widely used theoretical model that originates in studies of health behaviour and seeks to provide an overall model that captures all the factors that could influence behaviour (Keyworth et al., 2020). In order of importance, this included: confirmation of the date of the payment, or likely window, confirmation that bank details had been received and the repayment is being processed, notification that the repayment has been made. A letter notifying a taxpayer that the wrong amount of tax has been paid. A full breakdown of the achieved sample can be found in Appendix B. It costs nothing to find out if you have a claim. Dont include personal or financial information like your National Insurance number or credit card details. The most appropriate solution for your business will depend on your circumstances (e.g. 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. We are not experts on forms, they use a lot of jargon the P53, it will go to SPAR team, I dont know what those things mean. You have rejected additional cookies. If you've underpaid, HMRC will explain how they'll claw the money back. Why not use our live chat to speak to an
online advisor now? 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. The points at which taxpayers could drop out of the process were: receiving the repayment notification; their response to reading the repayment notification; or their attempt to sign in to or set up their Government Gateway or Personal Tax Account. Pay As You Earn (PAYE) is HMRC's system to collect income tax (which helps pay for services like education and healthcare), and National Insurance (which helps pay for some benefits and the State Pension) from employees. 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. 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. 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. 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). 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. Thats where that money if it hadnt been taxed would have gone into anyway. 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). (b) What would the ideal taxpayer repayments experience look like? (BACS Personal Tax Account, 45 to 64, Less than 100). Nurses' strike: Health secretary Steve Barclay urges union to call off Participants felt it would be important for them to receive notification and explanation of the repayment so they were not confused or concerned by an unexpected deposit. 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. 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. HMRC will usually pay interest from the date you pay your Corporation Tax to the payment deadline. On average, it can take HMRC up to 12 weeks to process a tax refund claim. Participants also thought that if payments were paid in instalments alongside their salary, it would be more difficult for them to check that it had all been repaid, and there was a sense that the money being mixed up with their income could lead to confusion of their usual budgeting. However, participants raised some concerns about how automated payments would work in situations where a taxpayer had changed jobs or bank accounts or retired. 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. 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. 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. VAT: Credit notes what are they and how are they treated? However, once a NETP has completed the form, which is accessed via the Government Gateway HMRC will set a lock on the taxpayers record to prevent the payable order being automatically issued. 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. 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. The more changes to the tax code system, the greater risk of something going wrong. 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. As of 1 July 2021, items imported to the EU with a value of 22 or less became no longerexempt from VAT. Some further advice when shipping, using the IOSS option, to the Republic of Ireland Whichever IOSS solution you choose, Royal Mail can take your items and ensure they get delivered across the EU without delay. We will help you gather all the information you need, prepare and submit your claim. It should also be noted that definitions of timely payments were quite generous in the context of HMRC. Similarly to the 64-8 form, the quicker you can send any supporting documentation to us then the quicker we can calculate and submit your claim. This means you will never be charged any fees you have not agreed to.There are no further fees to pay, and no hidden charges.All aftercare is included (if you need us to call HMRC on your behalf, if you have a problem you would like us to resolve with them, if your tax code needs correcting etc).Your refund is covered by the unique RIFT Guarantee which means that whatever happens, your refund stays in your own pocket and will never go back to HMRC.