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. This was particularly the case among older participants in the passive group. There are 2 key limitations to keep in mind when reading this report. You're self-employed and your payments on account are too high. 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. 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. Marketplace sellers who sell via Amazon, eBay, Etsy and NotOnTheHighStreet can continue to visit their local Post Office in the normal way. HM Revenue and Customs (HMRC) Research Report 670. (h) BACS payment requested via PTA including views about ease of access, usability and timeliness? 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. Thats where that money if it hadnt been taxed would have gone into anyway. Editor, Marcus Herbert. 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. HMRC Payments Strategy | Tax Adviser On average, it can take HMRC up to 12 weeks to process a tax refund claim. We often link to other websites, but we can't be responsible for their content. A live chat was regarded as preferable to phoning HMRC, as wait times would be shorter. 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. 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. The service will allow the UK merchant to calculate and collect from their customer at the checkout an additional amount that will cover the cost of import VAT and customs duty alongside the DDP handling fee. (e) What are the key triggers for customer support service use and the outcomes sought by taxpayers? 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. (f) What is their awareness of the Personal Tax Account in general and as an option for processing tax repayments via BACS? 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. For most kinds of refund, everything moves pretty quickly once HMRC have approved the amount. 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. For a full-list of updates please visit GOV.UK. All you need do is to input your IOSS number into the correct field, when requested, on the Royal Mail shipping platform you use. Don't worry if you had a mixture of self-employed and PAYE (employed by a company) work during the period you want to claim for. 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. Taxpayer contact with HMRC was limited during the repayment process. To help us improve GOV.UK, wed like to know more about your visit today. If you get an email about tax rebates that seems to be from HMRC, watch out! Just click something to say yes Im happy to receive this payment and thats all they had to do. Some participants were also confused about whether repayment via PAYE would mean that the repayment would be subject to tax. 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. 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. 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. Every IOSS number is a total of 12 digits. 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. 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. If this happens and a customer is overcharged in this way, they can contact Swedish Customs to claim it back. Changes to tax codes: This was the least preferred option across the sample, and the least understood. Ultimately, participants wanted access to the money with minimal delay, either because they felt strongly that it was owed to them and that it was right that they had it as soon as possible (proactive), because they wanted to invest the money as soon as possible (proactive), or conversely, being low on funds and wanting the money to cover everyday expenses or debts (passive and digitally limited). If the taxman realises that you've paid the wrong tax, he'll send you a P800 tax calculation to tell you. Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. For this reason, the idea of a banking app was regarded as easier and more secure than entering bank details online. There are 3 main ways in which Income Tax overpayment is administered. IM0123456789. 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 . A tax return is a form you use to tell HMRC about your earnings and expenses. Once we've got all your information, it usually takes about 4 weeks to put your claim together. Those who had received a cheque were habituated to waiting for it and those who had contacted HMRC by phone were more likely to do so again to claim future repayments. Information requested on the Gform will include: email: marcus.ward@consultant.com It felt like I was going round in circles. Findings were analysed using a framework for understanding behaviour, the COM-B model. Well send you a link to a feedback form. You could be falling for a scam. 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. The fact that claiming online provided repayment recipients with their repayment sooner could be a motivational facilitator for doing so, though this depended on the amount of the repayment. I just wanted it into my bank account. 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. You can change your cookie settings at any time. 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. This was particularly true among proactive participants who felt that the money was owed to them, though participants generally felt it was fair for the repayment to be made without delay, and for them to be in control of the money. 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. 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 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. 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). If they can't do that, they'll let you know what you have to do to settle up. payment for the current tax year) or to a taxpayer who makes a deferred claim (i.e. 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). The interviews were conducted both online over Zoom and over the phone to improve accessibility for participants with lower digital confidence. Dont worry we wont send you spam or share your email address with anyone. 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. Your repayment will go direct to your bank account if HMRC has your bank details. 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. DDP is dependent on the overseas delivery Post or partner being ready to accept and process. 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. Mon-Thurs 08:30 - 20:30 Fri 08:30 - 18:00 and Sat 09:00 - 13:00. 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). 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. (a) What do taxpayers need in relation to the repayments process including information, timeliness, ease, choice, transparency, trust? Royal Mail will not be responsible for these. These are explored in detail below, along with barriers experienced by particular taxpayer groups. Principally, respondents from these 2 profiles would prefer a level of automation in the verification process, including facial recognition technology. EU recipient is contacted in country and pays VAT owed before receiving item, UK seller registers for VAT themselves, via an intermediary, collects VAT and completes monthly tax returns, UK seller sells through an IOSS registered marketplace, so the marketplace take on the responsibility for collecting and paying VAT on B2C items with the value of 150 or below, Allows UK sellers to collect and pay tax and duty on goods that would otherwise be paid by the customer before delivery, UK seller uses trusted partners to a) provide support in registering and completing tax returns, or b) completely take care of EU VAT compliance instead of the seller, to simplify the process for collecting and paying VAT on B2C items with value up to 150, Saves on third party costs and often uses in-house tax expertise or resources, Full and accurate electronic customs data is required for IOSS and DDP, Items without full and accurate data will be sent / delivered as DDU. While this group was most likely to say that they wanted the option to phone HMRC for support, one participant with Aspergers noted that he had struggled to communicate with the HMRC advisor on the phone and would have benefitted from a separate helpline catering to taxpayers with disabilities. 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 P800 or had issues with their repayment. It's not just about your expenses, either. 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. Unless you prove to HMRC what you're owed, though, the taxman won't have the information he needs to settle up. It provides a breakdown of tax owe and tax paid and is only issued if too much or too little tax has been paid. Participants differed slightly in terms of how much additional communication they wanted after the P800, based on their taxpayer group and whether they had experienced any issues in claiming their last repayment. 100 automatic fine for filing even a single day late, 900 in penalties can stack up over the next three months, 3,000 for each year you cant provide the necessary records. By using IOSS, the vast majority of our delivery partners will not charge import VAT or a handling fee. (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? A cheque is easier, more straightforward. If you dont already have a solution in place, you can continue to post with Royal Mail but your customers may have to pay import VAT and a handling fee in the receiving country before they can receive their parcel from our delivery partner, no matter how small the value of the goods is. This section provides a summary of key characteristics of each profile identified in this research and the subsequent sections explore in detail the behavioural barriers and facilitators for each profile, as well as different participant suggestions for improving the repayments process. See below for further details. See our full list of services with prices and options. (b) What are their overall reflections of their experiences of the repayment process? HMRC has received notifications and complaints from taxpayers advising that they can no longer cash their payable orders in their country or their bank. There were no dropouts observed once a taxpayer had successfully set up and/or logged into their Personal Tax Account. The EU's Import One Stop Shop (IOSS) can help you start, or continue, trading from GB into the EU. 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. For sales you make through your own checkout you can register for IOSS yourself. It's worth making sure you get back what you're owed, too. Repayments are usually made within 30 days of HMRC getting your VAT Return. 10% of refunds made by payable order are returned each year, uncashed HMRC's preferred method of electronic payment is Direct Debit, as this means the payment details are verified and, unlike BACS and similar transfers, payments should be allocated automatically to the taxpayer's account. 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. 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. Please note:For Portugal any item valued over 150.00 (i.e. Though none of the participants had actually tried to ascertain whether the letter was genuine, they noted that a prompt on the notification explaining how to verify authenticity could help reassure them. To register for an EORI number visit https://www.gov.uk/eori for more information. 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. (b) What would the ideal taxpayer repayments experience look like? We also use cookies set by other sites to help us deliver content from their services. We monitor HMRC response times on a weekly basis and will keep you informed of the status of your refund throughout the process. What it's definitely not is a prize or a dodgy way of ''cheating the system''. The most appropriate solution for your business will depend on your circumstances (e.g. This section considers participants preferences in the context of specific taxpayer groups, as the process pain points and suggestions for improvement differed greatly by profile. 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. Either way, it's a great feeling to claim your money back from the taxman! VAT What records must be kept by a business? You can reach us on the phone or Livechat. I would feel a bit funny, its between me and HMRC, especially if its more money. However, participants were more likely to be familiar with the Government Gateway and often used this language to talk about the log-in 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. Proactive and capable withdrawers did not suggest any changes to the level of support they receive. We then send it to HMRC who will review it. Across the responses to the ideas, and aligned with their suggestions for improvements, participants valued automation where possible, transparency and a lump sum payment. They can also receive a payable order by post by taking no action for a period of 21 days. If this happens it could result in your customers being charged VAT additionally on delivery along with a small handling fee. This was the least preferred option across the sample. 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. 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. This service calculates all import Duty and Tax chargeable at the checkout. In general, participants who felt confident engaging online with HMRC, specifically members of the proactive, digital by default, capable withdrawers and certain passive profiles, were happy for subsequent communications from HMRC to be minimal. As a result, tax codes were associated with HMRC error, and could be seen as the reason the overpayment had occurred in the first place. We'll let you know by phone and text when the cash is on its way. 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. Our close working relationship with HMRC means we receive regular updates on their current workload, procedures and timescales for different kinds of enquiries. If its done online it will be paid in 5 days so I dont really need messages in those 5 days. Royal Mail has also developed two solutions for sales you make through your own checkout that may suit your business. Each month hundreds of payable orders issue to VAT payers are returned to HMRC undelivered, which suggests that the businesses and individuals cannot then be traced. In Sweden there is currently a further short-term complexity.
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