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. 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. Those in the low online trust group in particular preferred to be paid by cheque and generally avoided online transactions. You can change your cookie settings at any time. You can register yourself, via an intermediary, and file your own EU VAT returns. It says on the calculation 'repayment due' and that section is marked (helpfully NOT) this is either what you have to pay or what we owe you. For IOSS and DDP the existing international prohibitions and restrictions apply. If you get an email about tax rebates that seems to be from HMRC, watch out! 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. If so, you just need to assign their IOSS number along with all the normal customs data in the pre-advice to us for the items sold through that marketplace. (e) What are the key triggers for customer support service use and the outcomes sought by taxpayers? VAT repayments - GOV.UK DDP is dependent on the overseas delivery Post or partner being ready to accept and process. 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. Meanwhile, hundreds of workers from His Majesty's Revenue and Customs (HMRC) will go on strike in May and June - as it was announced midwives have voted to accept the latest NHS pay offer. Your item will be handled Delivered Duties Unpaid (DDU). In many cases, they'll take care of it automatically in installments. Participants liked the idea of avoiding the need to remember passwords and usernames, instead utilising the apps facial recognition and touch ID features. Findings were analysed using a framework for understanding behaviour, the COM-B model. Repayment journeys varied depending on the type of taxpayer, as defined by their approach to financial management, their knowledge of tax affairs as well as their digital confidence and access. For IOSS there will not be any charges for you. If HMRC wants your refund back, we cover it. As a result, HMRC commissioned research to collect taxpayer feedback to inform these aims. 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. HMRC Payments Strategy | Tax Adviser I would feel a bit funny, its between me and HMRC, especially if its more money. 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? The new rules could impact how you do business in the EU. 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. There are 3 main ways in which Income Tax overpayment is administered. You have a range of IOSS options with Royal Mail. Payable orders can be used when electronic payments are not possible. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to 3,023. HMRC launches 'potentially game-changing' IR35 review An opt in or out exercise was then conducted which gave individuals in the research sample the opportunity to register their interest in taking part in the research or request not to be contacted. You can also use our tax refund calculator to see how much you are due if you do make a claim. To help us improve GOV.UK, wed like to know more about your visit today. (b) What are their overall reflections of their experiences of the repayment process? 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. Use theRIFT tax refunds appto track the status of your HMRC tax refund. Take a look at the Frequently asked Questions and their answers to help you find the right solution for you and your business. It should NOT then be recorded as an expense. Check our calendar of key self-assessment dates and deadlines and make sure you're not caught out. 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. 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. As for how you get your refund, you can choose either a cheque or direct bank transfer. You dont want it to come across youve suddenly had this inheritance come from HMRC. For most types of tax refund, the payment process all moves quite quickly once the claimed amount has been approved by HMRC. Want to chat to a member of our team? They key benefit lay in the ease of logging into their existing banking app, as taxpayers often used face ID or touch ID fingerprint to do so, avoiding the need to remember usernames and passwords or to set up an account. 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. Another key opportunity barrier arose as taxpayers attempted to log in to their Government Gateway or to verify their identity to set up a Personal Tax Account. Or, if you prefer to concentrate on selling, you may want to consider our assisted IOSS solutions with our partner Taxamo. HM Revenue and Customs (HMRC) Research Report 670. 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). A facilitator relating to taxpayers capability was familiarity with the online repayment process. 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. (BACS Personal Tax Account, 60+, More than 600). 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. We have three options available to help you manage these changes depending on the size and nature of your business. On the whole, participants did not want a great deal of communication from HMRC during the repayments process. Find out more about self assessment deadlines and penalties. This was the least preferred option across the sample. 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). The same is true for DDP although in addition you will need to calculate and collect Customs Duty on items valued 150 or more. Whatever the case, it could lead to delays, returns and a poor delivery experience for you and your customers. You can change your cookie settings at any time. 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. We also use cookies set by other sites to help us deliver content from their services. By using IOSS, the vast majority of our delivery partners will not charge import VAT or a handling fee. It should also be noted that definitions of timely payments were quite generous in the context of HMRC. This solution will allow you to comply with the new rules and ensure a smooth delivery experience for your customers. 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. This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service. The earliest date theyll pay interest from is 6 months and 13 days after the start of your accounting period. 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. A cheque is easier, more straightforward. payment for the current tax year) or to a taxpayer who makes a deferred claim (i.e. The research drew on thematic analysis to synthesise the findings and identify the different taxpayer groups. Participants who had claimed online via the Personal Tax Account were confident about the authenticity of the letter as a result of several contextual cues. 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. We'll tell you straight away what you're owed, It's free to find out if you have a claim. 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. Each interview mapped the repayments journey to mark key events in the repayments process, as well as how participants felt at the time, and what drove the decisions and actions taken. Changes to tax codes: This was the least preferred option across the sample, and the least understood. 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. (Payable order, 18 to 29, More than 600). Id rather have all the money sent to me in one go so I can use it however I need to use it. There were no dropouts observed once a taxpayer had successfully set up and/or logged into their Personal Tax Account. This will help to avoid unexpected charges and delivery delays to the end recipient, improving the overall customer experience. In some cases, your tax rebate will happen automatically. More destinations will be added in due course. Whilst there was overall high satisfaction with the process, participants detailed 2 main suggestions for improvements to the repayments journey: 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 and feelings of trust in HMRC, 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. They must have our bank account details on file. Your repayment will go direct to your bank account if HMRC has your bank details. It takes less than a minute to complete and gives you an instant estimate. what is a payable order from hmrc - core-g.com 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. 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. 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. Most of the time, it'll be because you've been spending money in order to do your job. It's always a good idea to keep records of your work expenses, whether or not you're thinking of making a claim right now. The section begins by outlining the ideal repayment process from HMRCs perspective and the reasons for dropping out at various stages, before introducing the 6 taxpayer profiles that emerged from the findings. Overall, participants wanted to retain a postal version of the repayment notification, as they felt they were likely to dismiss emails or texts from HMRC as fraudulent. To register for an EORI number visit https://www.gov.uk/eori for more information. This throws out all the calculations for proft and loss. If you don't want to register yourself, we also have Taxamo Assure, an innovative pay-as-you-go solution which is perfect if you simply want to concentrate on selling. Alternatively, you can register for and pay VAT in each member state you are selling goods to. 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. Proactive participants also liked simplicity and that it required minimal input from the repayment recipient. 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. How long do tax refunds take? | Your Tax Refund I spent 4 days trying to find the right documents and trying to login. The primary sampling criteria for the research was the method of repayment. 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. A lot of the time, people don't even realise how many of their day-to-day expenses qualify for tax relief. 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. Very occasionally the court may also approve removal of items from inside the home What if I still can't pay? Instead, you can make use of the One Stop Shop (OSS) which is another EU VAT scheme that allows you to declare and pay VAT on all sales into the EU by submitting a single quarterly EU VAT return. 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. Here at Your Tax Refund we expedite your tax refund claim and try to get it settled as quickly as possible. 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. 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. This is operational now for Tracked & Untracked services to: Other destinations will be added as they become ready. To help us improve GOV.UK, wed like to know more about your visit today. For this reason, the idea of a banking app was regarded as easier and more secure than entering bank details online. Keep in touch and well keep you on the right side of the taxman, completely free of charge. If you've paid too much tax, your P800 will explain what you have to do to get it back. Linked to a preference for online, another motivational facilitator driving taxpayers to claim online was a dislike of cheques and a strong preference for bank transfers. Why not use our live chat to speak to an online advisor now? Participants felt that the complexity of tax codes could end up confusing their employer and lead to further errors. This was particularly the case among older participants in the passive group. You cant have extra money appearing without knowing. They were also more likely to say that they would like to confirm their bank details on the phone with HMRC. Furthermore, taxpayers without a smartphone that was compatible with banking apps were not confident at transacting online. This will help to avoid unexpected charges and delivery delays to the end recipient, improving the overall customer experience. 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. DDP is available to a limited, but growing, list of EU destinations. 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. What it's definitely not is a prize or a dodgy way of ''cheating the system''. 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. 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. However, less trusting participants were interested in receiving notifications at future points in the journey. 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. 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. 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. However, participants raised some concerns about how automated payments would work in situations where a taxpayer had changed jobs or bank accounts or retired. It also provides a Prohibited & Restricted Goods check, Denied Parties check & HS code look-up all in one API call. HMRC aims to send refunds out by payable order within 5 weeks, but sometimes takes a bit longer. There are no up front charges to pay for anything. See below for further details. 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. 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. 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. The choice is yours. 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. HMRC's OSS guidance can be found here . It says a payabl order has been issued to you seperately. 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. 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. 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. We'll deal with HMRC for you. We monitor HMRC response times on a weekly basis and will keep you informed of the status of your refund throughout the process. If you leave a job part-way through the tax year, for instance, the tax you've paid might be too high. There are 2 key limitations to keep in mind when reading this report. To identify specific Country requirements, please visit our individual country pages. 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. We currently believe only a small number of items are now being returned. To this end, HMRC has proposed some transformational solutions: payment authorisation via taxpayers mobile banking app, payment into salary accounts and changes to tax codes. 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. We also use cookies set by other sites to help us deliver content from their services. You can send items of Large Letter and Parcel Format dimensions (see format specifications below). (j) Was the repayment via payable order/cheque? It felt like I was going round in circles. 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. One-to-one interviews allowed for an exploration of the range of experiences, needs and circumstances in sufficient detail, and the semi-structured format meant that different participants could go into detail about the stages of the journey most relevant to their experience. 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. 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. Dont worry we wont send you spam or share your email address with anyone. 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. Here are the different options at a glance to help you to decide what suits your business best. You can also get more self assessment tax return tips and advice here with some clear "dos" and "don'ts". HMRC will usually pay interest from the date you pay your Corporation Tax to the payment deadline. 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. If you include your bank details (account number and sort code) on your Company Tax Return, HMRC will automatically refund what youre owed into your bank account. HMRC will never contact you by email for things like this. 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. 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. 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. It must also show they are commercial items (i.e. This experience occurred across taxpayer groups. It's all part of the service, and there's a lot more we can do behind the scenes as well - just have a look at these numbers below for the amount of time we're saving you on the phone to HMRC for starters!