In some cases, your tax rebate will happen automatically. Following participation in the interview, participants received an incentive to thank them for their time. These participants described an opportunity barrier whereby they either did not have the correct identification required, had difficulty retrieving their Government Gateway details and password, or attempted to complete the process on their phone and later forgot to return to the process on a laptop or desktop. You'll never have to phone them or reply to their letters yourself. HMRC to phase out government cheques for VAT refunds 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. This means the data requirements will change in areas including HS codes and duty and VAT rates, as well as having implications for prohibited and restricted goods screening. HMRCs OSS guidance can be found here. The Rolldeen Estates Ltd case. (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? Received a letter on 27th April saying they were sending a payable order to natwest bank within 14 days. There are 3 main ways in which Income Tax overpayment is administered. Pay As You Earn (PAYE) is HMRC's system to collect income tax (which helps pay for services like education and healthcare), and National Insurance (which helps pay for some benefits and the State Pension) from employees. 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. Some further advice when shipping, using the IOSS option, to the Republic of Ireland 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. If you get an email about tax rebates that seems to be from HMRC, watch out! 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. It's not just about your expenses, either. 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. You can change your cookie settings at any time. This was the least preferred option across the sample. A facilitator relating to taxpayers capability was familiarity with the online repayment process. The amount of time it takes for a tax refund claim to be processed and then paid is typically between 8-12 weeks. If they can't do that, they'll let you know what you have to do to settle up. Solved: Paying HMRC - QB Community On this page we tell you more about how PAYE tax and National Insurance deductions work. Remember, not receiving a P800 doesn't mean you're not owed a tax refund. 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. The interviews were conducted both online over Zoom and over the phone to improve accessibility for participants with lower digital confidence. To mitigate this, the research drew on stimulus materials to prompt recall, as well as journey mapping and cognitive interviewing techniques, to take participants back to the circumstances in which they made decisions. 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. Recruitment was conducted with the help of HMRC records. 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. 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). It should NOT then be recorded as an expense. 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. Your repayment will go direct to your bank account if HMRC has your bank details. VAT: Credit notes what are they and how are they treated? The research presented here is qualitative and explores a range of views in depth. How long do tax refunds take? | Your Tax Refund Use our online tools to find out if you're owed money by HMRC. Participants who felt confident engaging online with HMRC were happy for subsequent communications from HMRC to be minimal. If you dont have an account, you register, which I did. (Payable order, 18 to 29, Less than 100). As a result, HMRC commissioned research to collect taxpayer feedback to inform these aims. It was also important that HMRC clearly explained the reasons that an overpayment occurred. It also provides a Prohibited & Restricted Goods check, Denied Parties check & HS code look-up all in one API call. 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. Universally, participants preferred the option of receiving the money as a lump sum rather than paid across the year. It takes a few weeks to put together a really comprehensive tax refund claim. If its done online it will be paid in 5 days so I dont really need messages in those 5 days. Either way, it's a great feeling to claim your money back from the taxman! For DDP Businesses will need an Economic Operator Registration and Identification number (EORI) to trade with EU countries (if a business has traded with non-EU countries, it already should have a GB EORI number). Payable Order / PO: 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 . 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. 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 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. 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. As discussed in section 3.4, participants were supportive of changes that increased automation and minimised effort on their part, especially those who were digitally confident and capable. 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. The HMRC OSS registration portal can be found here. So long as you give us full and accurate information, if HMRC disagrees with the amount that weve claimed and ask for the money back, well pay it. 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. 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. 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. Aura, from Hurricane can help you identify these in your checkout. If you don't want to register yourself, we have Taxamo Assure - an innovative pay-as-you-go solution. The new rules could impact how you do business in the EU. They must have our bank account details on file. Payable orders can be used when electronic payments are not possible. On the whole, participants were quite satisfied with the repayment process they had experienced and, unless they had encountered a problem, did not feel that there was an urgent need to change the system. Overall, participants did not want a great deal of communication from HMRC during the repayments process. 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. 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. 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. Payable order hmrc MoneySavingExpert Forum An underlying motivation barrier to claim repayment via BACS, common among passive repayment recipients, was inertia and the existence of a default option. Just provide your IOSS number and full customs data in the pre-advice you send us. Check our calendar of key self-assessment dates and deadlinesand make sure you're not caught out. Dont worry we wont send you spam or share your email address with anyone. 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. Proactive, digital by default and capable withdrawers all expressed a preference for a higher degree of automation at HMRC. You have rejected additional cookies. Its HMRCs responsibility to look after my income and taxI shouldnt ideally be chasing them. If HMRC wants your refund back, we cover it. 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. When asked to describe their ideal repayment process, participants said that they would prefer not to need a repayment and not to have overpaid tax. We also use cookies set by other sites to help us deliver content from their services. 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. At RIFT Tax Refunds, we'll check in with HMRC regularly during the process, provided you've signed a 64-8 Authorising Your Agent Form but you can also track your tax rebate progress using the RIFT Tax Refunds app. 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. Taxpayers can request repayment via Bankers Automated Clearing System (BACS) through their online Personal Tax Account, however, only a minority do so. If these items are sent to Italy via IOSS, the overseas recipient may be charged VAT. Secondly, some participants expressed a wide range of concerns about the involvement of their employer. See below for further details. 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. If you want an update at any time, just give us a call -we can sit on the phone to HMRC for you while you get on with better things! If you leave a job part-way through the tax year, for instance, the tax you've paid might be too high. 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. It says a payabl order has been issued to you seperately. Less commonly, participants sought to avoid cheques as they had experienced issues with their postal service since COVID-19 lockdowns. Other than automation, participants suggested that some guidance be provided in advance of commencing the process, detailing which documents will be required as well as where they may be able to locate them. There are 2 key limitations to keep in mind when reading this report. Whatever the case, it could lead to delays, returns and a poor delivery experience for you and your customers. 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. 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. 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. We monitor HMRC response times on a weekly basis and will keep you informed of the status of your refund throughout the process. These participants did not expect repayments to be recurrent, either because the tax discrepancy had been caused by a one-off event such as retirement, or because they were in steady employment and paid by PAYE. You can register yourself, via an intermediary, and file your own EU VAT returns. By using IOSS, the vast majority of our delivery partners will not charge import VAT or a handling fee. Before we can send your claim to HMRC we need the 64-8 form signed and returned to us as these confirm to HMRC that we are authorised to act on your behalf. This model frames a persons capability, opportunity and motivation as either barriers or facilitators to a particular behaviour (Keyworth et al., 2020). Always check with RIFT if you've been sent a dodgy-looking email from someone claiming to be HMRC. Across the taxpayer groups, feedback from participants fell into 3 main categories covering both the current repayments process and more transformational solutions: a preference for more automation of the repayment process and HMRC support, a desire for a simplified Personal Tax Account sign up process. 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. 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. 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: psi@nationalarchives.gov.uk. 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. DDP is dependent on the overseas delivery Post or partner being ready to accept and process. 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. The chances are that you will have questions about the changes taking place in relation to EU VAT on 1 July and the options open to you. Please note: In accordance with Government guidance, if you are dispatching goods from Northern Ireland to the EU, IOSS cannot be used to declare and pay VAT on your EU sales. 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.

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