Patterns with regards to the context of respondents were used in the categorisation. (j) Was the repayment via payable order/cheque? A PO is sent to a taxpayer who makes an in-year claim (i.e. Some customers might refuse delivery, rather than pay the import VAT and the handling fee. For sales you make through your own checkout you can register for IOSS yourself. If HMRC wants your refund back, we cover it. 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. HMRC systems do not currently have CHAPS functionality or the ability to store overseas bank information. This was the least preferred option across the sample. Firstly, the sampling presented some issues for the range of views that were initially collected. 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. 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. 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? I dont know enough about tax codes to be able to know if its right or wrong. 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. 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. It can also be used for items with value up to 150 if IOSS is not suitable for you. VAT: Was an option to tax valid? The interviews were conducted both online over Zoom and over the phone to improve accessibility for participants with lower digital confidence. payment for the current tax year) or to a taxpayer who makes a deferred claim (i.e. 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. Those customers should declare which of these marketplaces their items were sold on, when presenting them at the Post Office counter, and the Post Office branch will capture this information. 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. 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. With our IOSS service, you calculate and charge your customer at the point of sale the VAT payable at the destinations VAT rate. Unless you prove to HMRC what you're owed, though, the taxman won't have the information he needs to settle up. The EU's Import One Stop Shop (IOSS) can help you start, or continue, trading from GB into the EU. We'll be able to give you an estimate of how long it will take to get your tax refund when your claim begins. A tax return is a form you use to tell HMRC about your earnings and expenses. Always check with RIFT if you've been sent a dodgy-looking email from someone claiming to be HMRC. We then send it to HMRC who will review it. This research drew on a qualitative research methodology to gain deep and rich insights into experiences of the repayments process and to co-create new solutions. If you've paid too much tax, your P800 will explain what you have to do to get it back. What is a HMRC 'payable order'? Once we've got all your information, it usually takes about 4 weeks to put your claim together. On average, it can take HMRC up to 12 weeks to process a tax refund claim. What happens next depends on your situation. On this page we tell you more about how PAYE tax and National Insurance deductions work. For lower amounts, participants tended not to mind waiting several weeks for the money, whereas participants were more motivated to access larger sums sooner. They were also more likely to say that they would like to confirm their bank details on the phone with HMRC. (c) What is the experience of repayment notification communications sent from HMRC (paper and digital) for different taxpayers? It allows you to calculate and collect VAT and, if applicable, customs duties from your customer at the checkout and pay it to the EU tax authorities via Royal Mail. Want to chat to a member of our team? It costs nothing to find out if you have a claim. 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 EU's Import One Stop Shop (IOSS) can help you start or continue trading from GB into the EU. This includes information on taxpayers personal circumstances, engagement and confidence with personal finances, as well as their typical behaviour when dealing with financial issues. You dont want it to come across youve suddenly had this inheritance come from HMRC. Participants who felt confident engaging online with HMRC were happy for subsequent communications from HMRC to be minimal. It can take 8-10 weeks for the taxman to check your details and confirm your refund total, so the sooner you get us the information we need the sooner you'll have your money. 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. 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. 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. Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. (Personal Tax Account BACS, 18 to 29, Under 100). As of 1 July 2021, items imported to the EU with a value of 22 or less became no longerexempt from VAT. For a better taxpayer experience and to reduce administrative costs, HMRC would like to shift taxpayers away from payable orders and direct them to BACS online repayments and other modern repayment methods. pre-sort (Max Sort Replacement), MTF 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. 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. We use some essential cookies to make this website work. These participants said that on receipt of the repayment notification, once they realised that they did not owe HMRC any money, they had only skimmed the contents of the letter and seen that inaction would still result in repayment. This is very similar to a traditional cheque and can either be posted directly to you or to your bank to process. This experience occurred across taxpayer groups. Most taxpayers are waiting to receive a payable order, and some are making a BACS claim over the phone, which makes the current repayments costly for HMRC and results in a high level of telephone contact from taxpayers. HMRC aims to send refunds out by payable order within 5 weeks, but sometimes takes a bit longer. An HMRC-issued cheque that is sent to a taxpayer 21 days after notification that a tax repayment is due if alternative electronic payment methods are not utilised or unavailable. Some participants were also confused about whether repayment via PAYE would mean that the repayment would be subject to tax. The website was very persistent in getting me to login with something I never thought I had in the first place. 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. Participants felt that notification about the repayment reason and process would be important for this option. You can also get more self assessment tax return tips and advice here with some clear "dos" and "don'ts". 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. VAT: Credit notes what are they and how are they treated? If you dont use Taxamo Assure and you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. This will help to avoid unexpected charges and delivery delays to the end recipient, improving the overall customer experience. On the whole, participants did not want a great deal of communication from HMRC during the repayments process. 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. 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. If you get an email about tax rebates that seems to be from HMRC, watch out! DDP is available to a limited, but growing, list of EU destinations. When you submit your claim details to us we will be able to give you a fairly accurate estimate of how long your claim will take. 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. Dh has a letter today which is headed tax calculation and says this letter shows a tax repayment due (for a year in which he was made redundant). It will take only 2 minutes to fill in. HMRCs OSS guidance can be found here. Cut a long story short no money has gone in. IM0123456789. 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. We have three options available to help you manage these changes depending on the size and nature of your business. Digital by default, proactive and capable withdrawers, who were digitally capable and confident transacting online, tended to automatically opt to claim their repayment via the Personal Tax Account. A facilitator relating to taxpayers capability was familiarity with the online repayment process. These are explored in detail below, along with barriers experienced by particular taxpayer groups. While participants were willing to be involved in the authorisation of the payment, they preferred that to be the extent of their involvement. Automation through PAYE or payment into salary accounts was also generally supported, though there were exceptions among participants who were uncomfortable with employer involvement. The earliest date theyll pay interest from is 6 months and 13 days after the start of your accounting period. Editor, Marcus Herbert. 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. Even if they did receive it, taxpayers did not always read their repayment notification letter thoroughly. Use theRIFT tax refunds appto track the status of your HMRC tax refund. 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. These charges will depend on the country you are sending to, the value and nature of the item (e.g. Just answer a few simple questions and we can tell you whether the expenses you've had to pay out in the course of your work meant that you may have paid more tax than you should. Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. There are actually lots of reasons why you might have to claim tax back from HMRC. Secondly, participant recall of the process presented as a challenge for journey mapping. You can email us or send us a question or feedback through our contact page at any time and you can leave us a private message through our Facebook page. 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. 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. We often link to other websites, but we can't be responsible for their content. I spent 4 days trying to find the right documents and trying to login. 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. Well send you a link to a feedback form. (BACS Personal Tax Account, 45 to 64, Less than 100). 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. Have a look at our 'How Long Does A Tax Refund Take' pagefor more information about how long it takes to get your tax refund done and some pointers for how to make things happen as fast as possible. (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? 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. Participants tended not to use this language to describe their Personal Tax Account even if they had one, so did not recognise the phrase on the repayment notification letter or realise they might be able to use their existing Personal Tax Account. HMRC. You can do this by using Aura from Hurricane. 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. 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. HMRC will usually pay interest on your refund from either: HMRC automatically pays you the interest after they know your final Corporation Tax bill for the accounting period, which is normally when you file your Company Tax Return. In contrast, the main facilitators to taxpayers claiming their repayment via online BACS included: digitally confident taxpayers tended to automatically opt to claim their repayment via the Personal Tax Account and those who were also knowledgeable about tax affairs found the Personal Tax Account set-up or sign-in process to be simple, straight-forward and in line with their expectations, taxpayers who had successfully claimed via Personal Tax Account previously, and had not experienced any issues, were happy to do so again, and taxpayers 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. After youve had your refund, you can call us any time with questions about your tax. For sales where Taxamo is the electronic interface, there is no need for you to register for IOSS and file tax returns. A letter notifying a taxpayer that the wrong amount of tax has been paid. 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). Sale of goods). 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. 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. 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. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. This is very similar to a traditional cheque and can either be posted directly to you or to your bank to process. Here at Your Tax Refund we expedite your tax refund claim and try to get it settled as quickly as possible. 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. 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. You can send items of Large Letter and Parcel Format dimensions (see format specifications below). 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 you need help calculating VAT and customs duties then our partner, Hurricanes Aura service can do that in your checkout. 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. It should always start with IM and then be followed with 10 numbers with no spaces, e.g. Capable withdrawers in particular reported lacking motivation to persevere with sign-up or the authentication process if they encountered difficulties. 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. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. 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. 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. Proactive and capable withdrawers did not suggest any changes to the level of support they receive. They've got their own procedures. You're self-employed and your payments on account are too high. It must also show they are commercial items (i.e. Participants either tolerated the idea or else were not comfortable with the perceived lack of transparency and the ability for HMRC to make further errors. We often link to other websites, but we can't be responsible for their content. 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. See below for further details. 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. 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. 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. ''Temporary'' here just means it's somewhere you're working for less than 24 months on the trot. 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. Customers are advised to identify whether items being imported into a specific destination will require licences/certificates or incur additional charges. The greatest single dimension must not exceed 900mm but must be at least 100mm If dispatching goods from Northern Ireland to EU you can use the One Stop Shop (OSS). The model theorises that 6 components drive behaviour: psychological capability (such as comprehension and reasoning), physical opportunity (such as time and resources), social opportunity (such as interpersonal influences), reflective motivation (such as evaluations and plans). It's much more cost-effective to make payments electronically but when that's not. If you spot that your tax code has changed and don't know why get in touch and we'll get if fixed if HMRC's got it wrong. It was also important that HMRC clearly explained the reasons that an overpayment occurred. Key in the number in this format to ensure that it is recognised. Without 2 physical copies of your 64-8 document, HMRC won't even speak to us about your claim. Cognitive interviewing techniques were used to understand how different aspects of the process influenced thoughts, feelings and immediate behaviours.

Sample Letter Of Explanation For Criminal Record, Imaginary Friends As A Coping Mechanism, Articles W