We use some essential cookies to make this website work. Taxpayers only contacted HMRC once they received a payable order to verify the authenticity of the cheque, otherwise they proceeded to claim their repayment or else dropped out and waited for a payable order without further contact. There were 2 main reasons for the unpopularity of changes to tax codes as a solution. Once registered for IOSS in only one EU country, VAT can be collected at your online checkout and paid on all B2C sales of goods with value up to 150 into the EU by submitting a single monthly EU VAT return. How Long Does A Tax Refund Take? | Tax Back | RIFT Refunds Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. It's annoying, but it's all about protecting you. Prepared by Kantar (Matthew Holt, Asma Ali Farah, Emily Fu) for HMRC. 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. Though digital capability and aversion to payment by cheque were the most important drivers of the desired behaviour, there were several additional factors that meant taxpayers were more likely to claim online. Those in the proactive group felt strongly that it was not their responsibility to claim the payment, but rather HMRCs role to correct an error. I avoid going to the branch as much as I possibly can, I dont like queuing and I find the instantaneous transactionsfar more satisfactory, (BACS Personal Tax Account, 60+, Under 100). Some further advice when shipping, using the IOSS option, to the Republic of Ireland The main barriers to claiming their repayment via online BACS were as follows: taxpayers with low digital confidence, limited knowledge of tax affairs and poor digital access faced capability barriers such as low awareness of the repayment process, motivational barriers including a preference for the existing process due to low trust in online services, and opportunity barriers including limited access to the internet, knowledgeable and digitally confident taxpayers, who manage their finances and taxes regularly, faced an opportunity barrier whereby they did not always receive their repayment notification, digitally confident taxpayers without a thorough knowledge of tax affairs lacked motivation to persevere with the sign-up or the authentication process if they encountered any difficulties such as username and password retrieval and not having the right documents for verification, taxpayers with limited knowledge and experience of tax affairs did not always read their repayment notification thoroughly, did not engage with the detail of the letter, and often misunderstood the key messages. Only a minority of taxpayers request repayment via BACS through their Personal Tax Account, and taxpayers who make a claim to HMRC for a repayment of an in-year overpayment are only able to request a repayment via a payable order. pre-sort (Max Sort Replacement), MTF If dispatching goods from Northern Ireland to EU you can use the One Stop Shop (OSS). 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. Capable withdrawers in particular reported lacking motivation to persevere with sign-up or the authentication process if they encountered difficulties. For this reason, the idea of a banking app was regarded as easier and more secure than entering bank details online. Remember that you can claim for the last 4 tax years and you can make your claim at any time. 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. (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? VAT: Late payment interest rates increased, VAT: DIY Housebuilders Scheme deadline for claims extended. If the taxman realises that you've paid the wrong tax, he'll send you a P800 tax calculation to tell you. 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. The recipient may have to pay import VAT (and customs duties, if payable) and a handling fee in the receiving country. 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. The use of an established banking app provided an additional layer of trust as banking apps were regarded as secure, and participants felt that banks would also be accountable for their repayment. This means that older participants whose previous repayment pre-dated the existence of BACS online were more likely to be used to the payable order method of repayment. (g) What are their experiences of their relevant repayment process? The table below excludes self-claim repayment recipients, who had proactively contacted HMRC for a repayment before a repayment notification would have been issued. Upon receiving a repayment notification, taxpayers can request repayment via Bankers Automated Clearing System (BACS) through their online Personal Tax Account or over the phone. This was the least preferred option across the sample. 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. 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. 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. 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. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to 3,023. Participants were also happy for messages to be delivered via the Personal Tax Account, seeing this as very secure and appropriate to the process. 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. 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. The best way to speed up your tax rebate claim is to make sure you dont submit it during HMRCs typically busy periods. It was also important that HMRC clearly explained the reasons that an overpayment occurred. 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. 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. It's not just about your expenses, either. This service calculates all import Duty and Tax chargeable at the checkout. You could be falling for a scam. As they expected the reclaim process via Personal Tax Account to be relatively straight forward, they did not see much need for additional points of confirmation. 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. It wont cost you a penny. 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. Theres basically no acceptable excuse for missing self assessment tax return deadlines, even if you don't owe HMRC anything. Whatever the case, it could lead to delays, returns and a poor delivery experience for you and your customers. If HMRC wants your refund back, we cover it. If your DDP item cannot be delivered or the recipient returns the item to the seller, it will be returned tracked right back to your local delivery office. As soon as you're happy to go forward, we'll send your claim to HMRC for approval. 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. 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. 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. 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. 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. There were no dropouts observed once a taxpayer had successfully set up and/or logged into their Personal Tax Account. You can reach us on the phone or Livechat. 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. If you leave a job part-way through the tax year, for instance, the tax you've paid might be too high. It says a payabl order has been issued to you seperately. 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). 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. 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. A facilitator relating to taxpayers capability was familiarity with the online repayment process. 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. The specific research objectives were to: 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. While participants were willing to be involved in the authorisation of the payment, they preferred that to be the extent of their involvement. This will help to avoid unexpected charges and delivery delays to the end recipient, improving the overall customer experience. A participant information letter was sent to individuals in the sample including a clear description of the research, its purpose and coverage, details of named contacts at HMRC and Kantar Public and information on how to opt-in or opt-out of the research. HMRCs OSS guidance can be found here. 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. However, they suggested several minor improvements they felt would streamline the repayments process. VAT repayments - GOV.UK If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. 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. A full breakdown of the achieved sample can be found in Appendix B. Whichever approach you choose it allows you to calculate and collect VAT from your customer at the checkout and pay it directly to the EU. In response to the 1 July 2021 changes, if you are a business who sells to customers in the EU, you have several options to consider. If you've paid too much tax, your P800 will explain what you have to do to get it back. 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're claiming your tax refund through RIFT, HMRC will send a payable order to us. 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. Participants often assumed that HMRC had customers bank details and would be able to process payments using this information. Changes to tax codes: This was the least preferred option across the sample, and the least understood. 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. As a result, HMRC commissioned research to collect taxpayer feedback to inform these aims. HMRC. ''Temporary'' here just means it's somewhere you're working for less than 24 months on the trot. It costs nothing to find out if you have a claim. Firstly, tax codes were not well understood by participants, even among the more financially savvy, so were regarded as an opaque way to communicate about and process a repayment. 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. The HMRC OSS registration portal can be found here. However, participants were more likely to be familiar with the Government Gateway and often used this language to talk about the log-in process. 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: [email protected]. 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. What is a HMRC 'payable order'? Participants wanted to see simplification of the verification process, or at minimum, advance information about which documents would be required to set up a Personal Tax Account and how long it should take. It should always start with IM and then be followed with 10 numbers with no spaces, e.g. For further details see our Frequently asked Questions page. 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. Remember, not receiving a P800 doesn't mean you're not owed a tax refund.