Royal Mail will not be responsible for these. Proactive and capable withdrawers did not suggest any changes to the level of support they receive. I did not have everything I needed to sign up or login. You can register yourself, via an intermediary, and file your own EU VAT returns. 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. Youll be refunded the amount left after you have repaid the tax you owe. We'll let you know by phone and text when the cash is on its way. 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. While there were multiple barriers to taxpayers reclaiming by BACS, the most important reasons for not doing so were: not receiving the repayment notification; difficulties logging in or signing up to the Personal Tax Account, low digital capability and fear of transacting online, inertia and attitudes towards overpaying tax and the repayments system. We'll then take our fee and send the rest of the money straight to you. As soon as your refund's paid out, we'll either send you a cheque or pay it into your bank account if you prefer. As they expected the reclaim process via Personal Tax Account to be relatively straight forward, they did not see much need for additional points of confirmation. Dont worry we wont send you spam or share your email address with anyone. Every IOSS number is a total of 12 digits. 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. On average, it can take HMRC up to 12 weeks to process a tax refund claim. The findings in this report reflect the attitudes of participants at the time it was conducted. IOSS is available to all EU destinations. VAT What records must be kept by a business? 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. In Sweden there is currently a further short-term complexity. Secondly, participant recall of the process presented as a challenge for journey mapping. We'll tell you straight away what you're owed, It's free to find out if you have a claim. Paying into salary account: This was a popular option among current PAYE taxpayers, who overall regarded it as a simple way to receive a repayment. So, what are you waiting for? This was particularly the case among older participants in the passive group. If you register yourself, all you need do is to input your IOSS number into the correct field, where requested, on the Royal Mail shipping platform you use. Otherwise, you might be able to claim it online. This research report outlines the research aims, methodology and findings from these interviews. 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. Firstly, the sampling presented some issues for the range of views that were initially collected. 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. By using IOSS, the vast majority of our delivery partners will not charge import VAT or a handling fee. All it means is the taxman doesn't know he owes you the money. The website was very persistent in getting me to login with something I never thought I had in the first place. 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. or visit HMRC Trade Tariff tool with more information, in order to minimise delays through customs or items being returned to sender. Whatever the case, it could lead to delays, returns and a poor delivery experience for you and your customers. 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). A Large Letter (formally known as Flats) is considered as anythingthat is: Over the size of 140mm x 90mm On this page we tell you more about how PAYE tax and National Insurance deductions work. If you don't want to register yourself, we also have Taxamo Assure, an innovative pay-as-you-go solution which is perfect if you simply want to concentrate on selling. A facilitator relating to taxpayers capability was familiarity with the online repayment process. 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. Use theRIFT tax refunds appto track the status of your HMRC tax refund. 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. 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. Therefore the quicker you get these signed and sent back to us, the quicker we can progress your claim. For some Click and Drop processes the system will provide you with a marketplace name that you can just click on rather than having to key in the actual IOSS number but in all other instances please key in the full IOSS number as described, without any spaces. Universally, participants preferred the option of receiving the money as a lump sum rather than paid across the year. In recent weeks we have been experiencing issues with items to Ireland using the Import One Stop Shop (IOSS) option, some of these items have been returned to UK sending customers. This includes information on taxpayers personal circumstances, engagement and confidence with personal finances, as well as their typical behaviour when dealing with financial issues. A participant information letter was sent to individuals in the sample including a clear description of the research, its purpose and coverage, details of named contacts at HMRC and Kantar Public and information on how to opt-in or opt-out of the research. That usually takes around 2 weeks to come through. Id be less likely to claim online if its a long or a hard process, if I had to fill out loads of information. In particular, those in the proactive group and capable withdrawers sought additional forms of automation to remove barriers and reduce the hassle involved in reclaiming. 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. 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. Remember, not receiving a P800 doesn't mean you're not owed a tax refund. Even if they did receive it, taxpayers did not always read their repayment notification letter thoroughly. 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 . Marketplace sellers who sell via Amazon, eBay, Etsy and NotOnTheHighStreet can continue to visit their local Post Office in the normal way. 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. This can then be passed back to your customers. 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. 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. Repayment journeys varied depending on the type of taxpayer, as defined by their approach to financial management, their knowledge of tax affairs as well as their digital confidence and access. 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. Across all the solutions, participants emphasised the importance of being made aware of the repayment process, the amount and the due date. When you're paying your own way to temporary workplaces, the odds are good that you're owed some tax back for your expenses. Well send you a link to a feedback form. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to 3,023. There were 2 main reasons for the unpopularity of changes to tax codes as a solution. For further information about sending parcels and IOSS please see ourInternational Business Non-Personal and Personal Correspondence User Guidepdf, 2.16 MB. Principally, respondents from these 2 profiles would prefer a level of automation in the verification process, including facial recognition technology. We are continuing to work with the Swedish Post and will provide an update once this issue has been resolved. It will take only 2 minutes to fill in. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. This was because the arrival of the P800 meant that HMRC already had the right address, and participants felt there was minimal risk of someone else being able to cash a cheque that was in their name. You cant have extra money appearing without knowing. 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. Disclaimer: The views in this report are the authors own and do not necessarily reflect those of HMRC. 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. 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. Six main taxpayer profiles emerged from the variations in repayment journeys, linked to taxpayer knowledge and experience with finances and tax affairs, their trust in online services, digital confidence and their digital access. Therefore, this suggestion would only impact those taxpayers who could potentially become BACS online recipients with some additional support or if the process was simplified. There are 2 key limitations to keep in mind when reading this report. We monitor HMRC response times on a weekly basis and will keep you informed of the status of your refund throughout the process. Alternatively, you can register for and pay VAT in each member state you are selling goods to. There were digital by default taxpayers who had attempted to sign up to a Personal Tax Account on their smartphone but had paused if they had been unable to log into their account immediately or once they realised there was an additional verification step. Find out about the Energy Bills Support Scheme, Taxpayer experience of the HMRC repayments process, nationalarchives.gov.uk/doc/open-government-licence/version/3, An electronic transfer of funds between banks, An IT system that is used to sign up for online services of the UK government. Theres basically no acceptable excuse for missing self assessment tax return deadlines, even if you don't owe HMRC anything. 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. 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. 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. 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. HMRCs OSS guidance can be found here. 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. 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. 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. 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. A behavioural diagnosis workshop was conducted to generate hypotheses, drawing on the Capabilities, Opportunities, Motivations Behaviour (COM-B) behaviour change model. You have accepted additional cookies. For example, you might be owed a tax refund if: It can also make a difference if your personal circumstances change. It's always a good idea to keep records of your work expenses, whether or not you're thinking of making a claim right now. The 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. Repayments are usually made within 30 days of HMRC getting your VAT Return. Whichever IOSS solution you choose, Royal Mail can take your items and ensure they get delivered across the EU without delay. This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. The HMRC OSS registration portal can be found here. If your company or organisation pays too much Corporation Tax, HM Revenue and Customs (HMRC) will repay what youve overpaid and may also pay you interest on it. (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? 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. 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 . Why not use our live chat to speak to an online advisor now? This is very similar to a traditional cheque and can either be posted directly to you or to your bank to process. A lot of the time, people don't even realise how many of their day-to-day expenses qualify for tax relief. HMRCs OSS guidance can be found here. When you're owed a HMRC tax refund, it's because you've already paid too much tax. HMRC are always busier close to the self assessment tax return deadline of 31 January, and the tax credit renewals deadline of 31 July and they tend to be slower at those times. On the whole, participants did not want a great deal of communication from HMRC during the repayments process. 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. 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. 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. It should NOT then be recorded as an expense. For most kinds of refund, everything moves pretty quickly once HMRC have approved the amount. I would feel a bit funny, its between me and HMRC, especially if its more money. Here are the different options at a glance to help you to decide what suits your business best. NETPs will then receive their repayments directly into their bank account without the need to visit their bank to cash a payable order. Want to chat to a member of our team? 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. Speak to us 6 days a week. 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. Participants with low confidence and digitally limited customers tended to want more communication and wanted to receive an email and a letter for each stage along the journey. To register for an EORI number visit https://www.gov.uk/eori for more information. As soon as you're happy to go forward, we'll send your claim to HMRC for approval. To help us improve GOV.UK, wed like to know more about your visit today. As a result, HMRC commissioned research to collect taxpayer feedback to inform these aims. 21% in Belgium. We are also at an advanced stage of deployment planning for commercial solutions for DDP too and will be contacting existing customers in due course. We aim to collect all the relevant information relating to your claim, get it organised and then submitted to HMRC within just 10 days of receiving your initial query. Of course, with RIFT you won't need to worry about dealing with the hassle and complexity of all this. If you need help calculating tax then our partner, Hurricanes Aura service can do that in your checkout. If you register yourself for IOSS, you will need to calculate the landed costs of your goods. Prepared by Kantar (Matthew Holt, Asma Ali Farah, Emily Fu) for HMRC. HMRC issues a high volume of P800 tax overpayment notices to taxpayers each year (around 3.5 million in 2021). First-time repayment recipients also face a motivational barrier to using a Personal Tax Account. Each year, HM Revenue and Customs (HMRC) issues a high volume of P800 tax overpayment notices to taxpayers. Please note: Each destination is responsible for setting their own import controls on restricted goods. 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. We often link to other websites, but we can't be responsible for their content. They spontaneously suggested using Face ID technology to help streamline the process and avoid the need to remember or reset Government Gateway details. 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. This is due to changes to EU shipping rules and the requirement to provide accurate customs pre-advice information, IOSS requirements included in this document. 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. In terms of the existing repayments process, this included suggestions to use online chat bots to reduce phone waiting times, and to use facial recognition features to improve the verification process for the Personal Tax Account (more on this below). If you include your bank details (account number and sort code) on your Company Tax Return, HMRC will automatically refund what youre owed into your bank account. Participants with limited tax knowledge who read the first section struggled to comprehend a Personal Tax Account and expressed no desire in following up to get more information. However, digital by default customers did suggest HMRC should provide more education around tax and the role of the customer in managing tax affairs. HMRC. RIFT will handle the entire tax refund process for you from start to finish. The system automatically issued a payable order if a NETP was due a repayment. This experience occurred across taxpayer groups. If you submit your claim close to these time periods then it is likely that it could take a bit longer to be processed and paid, so if you can avoid doing so it would greatly speed up the whole process. 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. 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. There are 3 main ways in which Income Tax overpayment is administered. Your item will be handled Delivered Duties Unpaid (DDU). While participants were willing to be involved in the authorisation of the payment, they preferred that to be the extent of their involvement. For DDP there will be a 50p per item handling fee payable to Royal Mail alongside the VAT and duty we charge back to you. A PO is sent to a taxpayer who makes an in-year claim (i.e. Travel to temporary workplaces is a common reason, but there are many more. 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. Get started on yourtax rebatetoday. 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. This is the form that lets us tackle the taxman on your behalf. (f) What is their awareness of the Personal Tax Account in general and as an option for processing tax repayments via BACS? A cheque is easier, more straightforward. It will take only 2 minutes to fill in. A tax refund is money HMRC gives back when you've paid too much tax. A letter notifying a taxpayer that the wrong amount of tax has been paid. HMRC's OSS guidance can be found here . 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. It takes a few weeks to put together a really comprehensive tax refund claim. Take a look at the Frequently asked Questions and their answers to help you find the right solution for you and your business. The table below excludes self-claim repayment recipients, who had proactively contacted HMRC for a repayment before a repayment notification would have been issued. HMRC has received notifications and complaints from taxpayers advising that they can no longer cash their payable orders in their country or their bank. They can also receive a payable order by post by taking no action for a period of 21 days. 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. Otherwise HMRC will send you a. You can change your cookie settings at any time. The recipient may have to pay import VAT (and customs duties, if payable) and a handling fee in the receiving country. Here at Your Tax Refund we expedite your tax refund claim and try to get it settled as quickly as possible. See below for further details. 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. Taxpayers can also choose to complete a form to receive an in-year payment, rather than wait to receive a repayment notification (these taxpayers are referred to as self-claim repayment recipients throughout this report). 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. 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. It costs nothing to find out if you have a claim. Motivation barriers to claim online could relate to a lack of trust in online processes and the security of online transactions. All you need do is to input your IOSS number into the correct field, when requested, on the Royal Mail shipping platform you use. 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. It felt like I was going round in circles. 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. (a) What are taxpayers communication preferences, including form, content, frequency? Participants repayment journeys varied based on the communication they received from HMRC, their engagement with the process, the actions they took and the method of their repayment. Under the size of 381mm x 305mm This included digitally limited taxpayers, those living in rural areas and those on a low income who were unable to afford data or broadband access. As an alternative to DDU and IOSS, we have developed a Delivered Duties Paid (DDP) service. 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). 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 need help calculating VAT and customs duties then our partner, Hurricanes Aura service can do that in your checkout. You can change your cookie settings at any time. I spent 4 days trying to find the right documents and trying to login. You have rejected additional cookies. To identify specific Country requirements, please visit our individual country pages. Once you have integrated the technology into your checkout, it does everything for you including automatically calculating the landed cost for you so you know what to charge at the checkout. payment for the current tax year) or to a taxpayer who makes a deferred claim (i.e. Remember that you can claim for the last 4 tax years and you can make your claim at any time. Passive participants in particular either did not understand the section of the notification relating to the Personal Tax Account, or else missed it completely having read the notification backwards and having focused on their repayment amount. You have a range of IOSS options with Royal Mail. They must have our bank account details on file. 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 Just click something to say yes Im happy to receive this payment and thats all they had to do. 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. Please check our International Incident Bulletin Page for the latest service updates and advice when sending items. An important capability barrier related to taxpayers digital access, as those without stable internet access or a device they could use were unable to create a Personal Tax Account online. Another key opportunity barrier arose as taxpayers attempted to log in to their Government Gateway or to verify their identity to set up a Personal Tax Account. Or, if you prefer to concentrate on selling, you may want to consider our assisted IOSS solutions with our partner Taxamo. 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. 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.