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. This model frames a persons capability, opportunity and motivation as either barriers or facilitators to a particular behaviour (Keyworth et al., 2020). 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. 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. (b) What would the ideal taxpayer repayments experience look like? A facilitator relating to taxpayers capability was familiarity with the online repayment process. Request that RMs DDP product codes (MPR for Tracked and/or DE6 for Untracked) are added to your RM account. If you're worried about how long it takes to get a tax refund, there are some things you can do to speed up the process. Even if they did receive it, taxpayers did not always read their repayment notification letter thoroughly. Financially inexperienced taxpayers tended to like this option and see the money as a bonus, and felt like this was sensible as their salary bank account was usually their main account. To identify specific Country requirements, please visit our individual country pages. The HMRC OSS registration portal can be found here. It's a complete overview of the taxable income you've made and the costs of doing business you've faced. Payable orders can be used when electronic payments are not possible. The new rules could impact how you do business in the EU. The interviews were conducted both online over Zoom and over the phone to improve accessibility for participants with lower digital confidence. You have a range of IOSS options with Royal Mail. Collect VAT (and duties if applicable) on from your EU customer in checkout and RM will invoice you for it, at a later date, along with a handling fee. (Payable order, 18 to 29, More than 600). Information requested on the Gform will include: email: marcus.ward@consultant.com 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. (b) What are their overall reflections of their experiences of the repayment process? It will take only 2 minutes to fill in. It's not just about your expenses, either. (j) Was the repayment via payable order/cheque? An attachment order, which lets HMRC (or its debt collectors) take possessions and goods from your business or from outside of your home. For a full-list of updates please visit GOV.UK. While participants were willing to be involved in the authorisation of the payment, they preferred that to be the extent of their involvement. To help us improve GOV.UK, wed like to know more about your visit today. Then anywhere from several days to 3-4 weeks on top of that to receive your rebate. 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. 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. Instead, HMRC would like to direct taxpayers to online BACS and other modern repayment methods and, at the same time, to improve the taxpayer experience of the repayments process. The research presented here is qualitative and explores a range of views in depth. One of the ways HMRC pays out tax refunds is via a payable order. These participants felt that the arrival of a cheque would prove that the letter was genuine, preferring not to take any action that they believed could leave them vulnerable to fraud. Our IOSS and DDP services can only be used when fully compliant customs data is supplied. Under the size of 381mm x 305mm Of course, with RIFT you won't need to worry about dealing with the hassle and complexity of all this. COM-B was used to capture the full range of influences on behaviour, such as capability, opportunity, motivation, and to unpick what can be done to affect change. The earliest date theyll pay interest from is 6 months and 13 days after the start of your accounting period. The correct marketplace IOSS number will then be allocated to your item by Royal Mail. 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 EU's Import One Stop Shop (IOSS) can help you start, or continue, trading from GB into the EU. There were no dropouts observed once a taxpayer had successfully set up and/or logged into their Personal Tax Account. VAT: Late payment interest rates increased, VAT: DIY Housebuilders Scheme deadline for claims extended. 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. The EU's Import One Stop Shop (IOSS) is a VAT registration scheme your business can use from 1 July 2021 to comply with the EU's new VAT e-commerce rules on sales from GB to the EU. The length of time generally depends on the tax office and what type of tax refund claim you are making as naturally the more extensive and complicated claims will take longer to process. 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. In addition, participants on a lower income preferred to have control over which bank account the money was paid into as, if the repayment was paid into an overdrawn account, they would be unable to freely access the funds. Please note: Each destination is responsible for setting their own import controls on restricted goods. Art objects, antiques and collectibles that are sent to Italy can not be processed via IOSS. 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. The research was framed by 4 primary research objectives: To understand the experience of the current repayments journey for different types of taxpayers, To explore taxpayer views about what a better repayments taxpayer experience could look like, To understand how taxpayers respond to proposed transformational solutions, To understand how taxpayers want to be communicated with and supported to maximise positive engagement with potential new repayments processes and services. If they received their P800 by post, they were reassured by the official HMRC letterhead and the information about the reasons for repayment being recognisably specific to them. 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. 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. DDP is available to a limited, but growing, list of EU destinations. Alternatively, you can register for and pay VAT in each member state you are selling goods to. Otherwise HMRC will send you a. Firstly, the sampling presented some issues for the range of views that were initially collected. 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. If dispatching goods from Northern Ireland to EU you can use the One Stop Shop (OSS). 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. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. The system automatically issued a payable order if a NETP was due a repayment. Following participation in the interview, participants received an incentive to thank them for their time. The EUs Import One Stop Shop (IOSS) is a VAT registration scheme your business can use from 1 July 2021 to comply with the EUs new VAT e-commerce rules on sales from GB to the EU. With the exception of those in the low online trust group, 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. (d) What are the barriers and pain points including those that prevent different types of taxpayers from taking up the Personal Tax Account option to claim their repayment? A live chat was regarded as preferable to phoning HMRC, as wait times would be shorter. (Personal Tax Account BACS, 18 to 29, Under 100). 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). 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. Each year, HM Revenue and Customs (HMRC) issues a high volume of P800 tax overpayment notices to taxpayers. If you want further detail a line level view can be accessed via our, For DDP Tax is at the rate set in the destination country, eg. A behavioural diagnosis workshop was conducted to generate hypotheses, drawing on the Capabilities, Opportunities, Motivations Behaviour (COM-B) behaviour change model. 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). 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. Recruitment was conducted with the help of HMRC records. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to 3,023. 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! A Large Letter (formally known as Flats) is considered as anythingthat is: Over the size of 140mm x 90mm It should also be noted that definitions of timely payments were quite generous in the context of HMRC. Proactive, digital by default and capable withdrawers all expressed a preference for a higher degree of automation at HMRC. Otherwise, you might be able to claim it online. There were 2 main reasons for the unpopularity of changes to tax codes as a solution. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. This is operational now to Germany, France, The Republic of Ireland, The Netherlands, Portugal, Austria, Cyprus & Malta. The overall aim of this research was to explore taxpayers views about the current repayments journey, drivers of a repayment claim via BACS online and to gather feedback on HMRCs proposed solutions. You can also get more self assessment tax return tips and advice here with some clear "dos" and "don'ts". The EU's Import One Stop Shop (IOSS) can help you start or continue trading from GB into the EU. 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. Once we've got all your information, it usually takes about 4 weeks to put your claim together. 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. Participants felt that notification about the repayment reason and process would be important for this option. IM0123456789. You can register and file your own EU VAT returns. 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. To address this issue HMRC has created a Gform that will enable NETPs to send their bank account information in order that the issue of a payable order can be avoided and a Clearing House Automated Payment System (CHAPS) payment made instead. All it means is the taxman doesn't know he owes you the money. 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. We don't as a general policy investigate the solvency of companies mentioned (how likely they are to go bust), but there is a risk any company can struggle and it's rarely made public until it's too late (see the. Key in the number in this format to ensure that it is recognised. 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. 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. Except for the participants in the proactive group, understanding and awareness of Personal Tax Accounts was low across the sample, including a lack of familiarity with the phrase Personal Tax Account. The findings in this report reflect the attitudes of participants at the time it was conducted. There are 2 key limitations to keep in mind when reading this report. Participants wanted to feel in control of the repayment money, and to be given direct access to it, rather than to receive it in smaller amounts spread across the year. 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. Id be less likely to claim online if its a long or a hard process, if I had to fill out loads of information. If you dont use Taxamo Assure and you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. Use theRIFT tax refunds appto track the status of your HMRC tax refund. This will help to avoid unexpected charges and delivery delays to the end recipient, improving the overall customer experience. Once they give us the green light and confirm the total, we take our fee and get the money to you within 3 working days. 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. HMRC will usually pay interest from the date you pay your Corporation Tax to the payment deadline. 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. It's a lot like a cheque, and is either sent to you or directly to your bank. 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. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. The HMRC OSS registration portal can be found here. For further details see our Frequently asked Questions page. Whatever the case, it could lead to delays, returns and a poor delivery experience for you and your customers. See below for further details. I would feel a bit funny, its between me and HMRC, especially if its more money. 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. In HMRC's language, a tax rebate is "a refund on taxes when the tax liability is less than the taxes paid". This throws out all the calculations for proft and loss. This can then be passed back to your customers. It's annoying, but it's all about protecting you. If you don't want to register yourself, we have Taxamo Assure - an innovative pay-as-you-go solution. (a) What are taxpayers communication preferences, including form, content, frequency? IOSS is available to all EU destinations. Participants in the proactive group tended to be most motivated to claim their money quickly, for example so they could invest it, and participants on a low income were also more motivated to access the money quickly. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. 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). The PTA sounds complicated, just another online thing that I wouldnt particularly need. 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. Find out about the Energy Bills Support Scheme, Accounts and tax returns for private limited companies, File your accounts and Company Tax Return, other tax your company owes, for example PAYE or VAT, your next Corporation Tax bill or a late filing penalty (if you do not enter a repayment limit when you submit your next Company Tax Return), as a payable order, to your registered company address, paid tax early (known as credit interest), paid more than your company owes (known as repayment interest), when you paid the tax, if you paid after the due date, the date your balance goes above what you owe. Participants felt that the complexity of tax codes could end up confusing their employer and lead to further errors. To this end, some suggested that communications could include advice about how to avoid overpayments in future, linked to the reason for overpayment. 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. 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. You have rejected additional cookies. What it's, calendar of key self-assessment dates and deadlines, If you are self-employed and already have a, The more documentation you can send us, the quicker we can get the claim calculated. After youve had your refund, you can call us any time with questions about your tax. Aura, from Hurricane can help you identify these in your checkout. 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. Due to the time lapse between the repayment and the date of interview, stimulus materials were used, which comprised copies of the P800 notification letter and screenshots of the Personal Tax Account interface, to re-immerse interviewees in their repayment journey. 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. We often link to other websites, but we can't be responsible for their content. The length plus the width plus the height must not exceed 900mmand no single dimension may exceed 600mm, The length plus twice the diameter must not exceed 1040mm butmust be at least 170mm If these items are sent to Italy via IOSS, the overseas recipient may be charged VAT. 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. 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). For most kinds of refund, everything moves pretty quickly once HMRC have approved the amount. Overall, participants did not want a great deal of communication from HMRC during the repayments process. Secondly, some participants expressed a wide range of concerns about the involvement of their employer. (a) What do taxpayers need in relation to the repayments process including information, timeliness, ease, choice, transparency, trust? We'll keep you up to date every time the status of your claim changes and even give you an expected pay out date so you'll down when you're getting your cash. The primary sampling criteria for the research was the method of repayment. If you do not include your bank details, HMRC will use the money youre owed to pay either: If any part of your repayment is used to pay debts you owe HMRC, youll see repayment confirmation in your company tax system. 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. You might also become eligible for tax relief that you couldn't claim before. In many cases, they'll take care of it automatically in installments. 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. These charges will depend on the country you are sending to, the value and nature of the item (e.g. It may take anywhere up to 12 weeks for them to work through your claim and approve it, but then the payment should arrive between 3-5 workings days depending on whether you want to be paid via a bank transfer or via a cheque / payable order. 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. If IOSS isn't for you, or you are sending items above 150 or items of any value to businesses, DDP may be the answer. Self-claim repayment recipients who contacted HMRC required help filling out the relevant form, finding the guidance from HMRCs contact centre advisors to be helpful for them to be able to make their in-year claim. What it's definitely not is a prize or a dodgy way of ''cheating the system''. It also felt like a sensible and appropriate choice as their salary bank account was usually their main account and they rarely if ever switched bank accounts. All 3 customer groups preferred the banking app authorisation and salary account transformational solutions, as these were considered to be more automated and to require less involvement from the customer to receive their money. 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). Once you've got your rebate cash, you might consider these smart tips on how to use your tax refund or perhaps you already know what you are going to use it for. From case studies to how-to guides, we can help your business grow, Whether youre set up on Amazon, selling on eBay, or youve got an Etsy shop, we can help you succeed, Find the right tool to help you streamline your shipping operation, and find out what your customers want from deliveries, HMRC OSS registration portal can be found here, You can find more information about these changes here, here is further guidance provided by the UK Government on these changes, International Business Non-Personal and Personal Correspondence User Guide, Delivery Duties Paid please see our guide, UK sellers do not ask their customer for tax and duty. The declaration must include a description of the contents and their value. 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. Less than 500g in weight. 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 section considers participants preferences in the context of specific taxpayer groups, as the process pain points and suggestions for improvement differed greatly by profile. No more than 20mm thick Across all the solutions, participants emphasised the importance of being made aware of the repayment process, the amount and the due date. If your DDP item cannot be delivered or the recipient returns the item to the seller, it will be returned tracked right back to your local delivery office. There are several reasons why you might overpay, and you often have to file a claim and prove you did. Firstly, tax codes were not well understood by participants, even among the more financially savvy, so were regarded as an opaque way to communicate about and process a repayment. 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. Our close working relationship with HMRC means we receive regular updates on their current workload, procedures and timescales for different kinds of enquiries. Participants were also happy for messages to be delivered via the Personal Tax Account, seeing this as very secure and appropriate to the process.

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