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. A Large Letter (formally known as Flats) is considered as anythingthat is: Over the size of 140mm x 90mm We use some essential cookies to make this website work. Recruitment was conducted with the help of HMRC records. This is the form that lets us tackle the taxman on your behalf. Don't give any personal information via email, don't follow any links and don't open any documents or other attachments you get. 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. 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. HMRC will refund the amount left after you've repaid the tax you owe, either: to the original payment card; as a payable order, to your registered company address; When HMRC will pay you interest. Marketplace sellers who sell via Amazon, eBay, Etsy and NotOnTheHighStreet can continue to visit their local Post Office in the normal way. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. 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). An opt in or out exercise was then conducted which gave individuals in the research sample the opportunity to register their interest in taking part in the research or request not to be contacted. Following the generation of hypotheses, a discussion guide was developed to explore in each interview contextual factors, experiences of the repayment process, suggestions for an improved repayments journey and any improvements to HMRC communication and support. There are 3 main ways in which Income Tax overpayment is administered. We then send it to HMRC who will review it. Unless you prove to HMRC what you're owed, though, the taxman won't have the information he needs to settle up. Import One Stop Shop (IOSS) and Postal Delivered Duties Paid (PDDP) 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. For most kinds of refund, everything moves pretty quickly once HMRC have approved the amount. 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. HMRC will never contact you by email for things like this. 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. The amount of time it takes for a tax refund claim to be processed and then paid is typically between 8-12 weeks. 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). payment for a previous tax year), Income Tax that is deducted from a salary; this is how most employees pay Income Tax, An electronic government portal that allows individuals to track their tax records, A way of reporting income and paying tax to HMRC; it is usually for people and businesses who have income that cannot be automatically deducted from wages, pensions and savings, A form that is used to generate a repayment from HMRC, such as Income Tax overpayments, expenses and pension-related taxes, A code to describe to employers how much tax to deduct for an employee paid under the PAYE scheme, Letter sent to old address, email delivered to spam folder, Miss the Personal Tax Account sections, do not understand what a Personal Tax Account is and ignore, put it off or choose to do nothing, set up Government Gateway ID, set up Personal Tax Account, use existing Personal Tax Account, Cannot retrieve Government Gateway ID details, cannot provide documentation, Had Personal Tax Account for tax affairs prior to receiving repayment notification, vigilant financial managers with extensive knowledge of tax and HMRC processes, digitally confident and regularly used financial management apps including online banking, Limited knowledge of Personal Tax Account, tax affairs and of HMRC processes, young and digitally savvy, not very proactive with financial management, Generally distrustful of online services and processes, limited understanding of tax affairs and not confident in being able to identify online scams, or became vigilant as a result of experiencing an online scam, Limited internet connection at home due to finances or basic digital skills, no use of banking apps / online banking, unfamiliar with HMRC digital processes such as the Personal Tax Account, Found Personal Tax Account process cumbersome and dropped out of process, eager to understand more about tax affairs but did not consider themselves particularly knowledgeable, though generally digitally literate, Overwhelmed by financial matters and did not consider themselves financially knowledgeable, but could use apps for the most part, viewed repayments process as HMRCs responsibility and were unwilling to be more active in the process, Reduce phone wait times with phone and online chat bots, Anything automated and received as a lump sum, Simplify or even automate ID verification (face recognition), Enhance assurances that Personal Tax Account website is genuine and not a scam, Require education about salary repayments and role of employer, Send official letters and emails that can be authenticated, Continue offering phone support for tax affairs, Provide ongoing phone support and send both letters and emails to make sure notifications are not missed, Simplify or even automate ID verification, Use banking app or create app with face recognition technology, Provide education about tax code changes, but continue to send letters or emails, Make the Personal Tax Account information on repayment notification more salient, Continue sending official letters and payable orders, Provide more information about tax code changes. 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. By using IOSS, the vast majority of our delivery partners will not charge import VAT or a handling fee. (a) What are taxpayers communication preferences, including form, content, frequency? 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. However, participants raised some concerns about how automated payments would work in situations where a taxpayer had changed jobs or bank accounts or retired. HMRC issues a high volume of P800 tax overpayment notices to taxpayers each year (around 3.5 million in 2021). However, they suggested several minor improvements they felt would streamline the repayments process. The findings in this report reflect the attitudes of participants at the time it was conducted. 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. The sample included participants whose P800s were dispatched in June to July or December 2021, and who may also have had multiple interactions with HMRC, which weakened their ability to reflect in-depth on their repayment journey. 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. 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. See below for further details. Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. 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. Untracked 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). 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. 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. The choice is yours. Cut a long story short no money has gone in. 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. (BACS Personal Tax Account, 45 to 64, Less than 100). HMRC launches 'potentially game-changing' IR35 review 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. I would feel a bit funny, its between me and HMRC, especially if its more money. Participants who had claimed online via the Personal Tax Account were confident about the authenticity of the letter as a result of several contextual cues. The new rules could impact how you do business in the EU. We monitor HMRC response times on a weekly basis and will keep you informed of the status of your refund throughout the process. (e) What are the key triggers for customer support service use and the outcomes sought by taxpayers? For more digitally confident participants, the idea of using their own banking app aligned with their current behaviour and comfort authorising payments for other services. 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. (BACS Personal Tax Account, 60+, More than 600). 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. Just search for 'RIFT Tax Refunds' in the app store. Qualitative data were analysed through a behavioural lens using the COM-B model to identify the barriers and facilitators to taxpayers claiming online via BACS. A simple 'pay-as-you-go' option where Taxamo acts as the electronic interface for you - allowing you to use its IOSS number to send parcels to consumers located in the EU. Some taxpayers may not have engaged at all with HMRC (i.e. 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. An underlying motivation barrier to claim repayment via BACS, common among passive repayment recipients, was inertia and the existence of a default option. 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. Most of the time, it'll be because you've been spending money in order to do your job. Interviewees were asked to recall their state of mind at the time of the event, including external factors, their emotional response, and cognitive factors. In response to the 1 July 2021 changes, if you are a business who sells to customers in the EU, you have several options to consider. You cant have extra money appearing without knowing. 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. This is the way forward, everyones doing it, you can do it on the bus on the train at home watching TV, its so much easier. Of course, with RIFT you won't need to worry about dealing with the hassle and complexity of all this. All you need to do is to pay a fee per parcel and Taxamo Assure will do the rest including calculating tax within your checkout. You can do this by using Aura from Hurricane. This is very similar to a traditional cheque and can either be posted directly to you or to your bank to process. An attachment order, which lets HMRC (or its debt collectors) take possessions and goods from your business or from outside of your home. The earliest date theyll pay interest from is 6 months and 13 days after the start of your accounting period. As an alternative to DDU and IOSS, we have developed a Delivered Duties Paid (DDP) service. 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. Automation through PAYE or payment into salary accounts was also generally supported, though there were exceptions among participants who were uncomfortable with employer involvement. 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. 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. 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. 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. The system automatically issued a payable order if a NETP was due a repayment. (b) What are their overall reflections of their experiences of the repayment process? Well send you a link to a feedback form. Government Banking - GOV.UK Customers must take independent advice on eligibility for use of IOSS or DDP. 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). 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. 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. Id be less likely to claim online if its a long or a hard process, if I had to fill out loads of information. No more than 20mm thick For this reason, the idea of a banking app was regarded as easier and more secure than entering bank details online. Then anywhere from several days to 3-4 weeks on top of that to receive your rebate. If you miss the deadline there are a number of self assessment tax return penalties that you could be hit with: Were here to take care of everything - from completing your tax return, through calculating any refunds due, to speaking to HMRC on your behalf. If this happens and a customer is overcharged in this way, they can contact Swedish Customs to claim it back. 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. HMRC. 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. 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. Repayments are usually made within 30 days of HMRC getting your VAT Return. If you need help calculating VAT and customs duties then our partner, Hurricanes Aura service can do that in your checkout. The declaration must include a description of the contents and their value. 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. HMRC aims to send refunds out by payable order within 5 weeks, but sometimes takes a bit longer. As a result, tax codes were associated with HMRC error, and could be seen as the reason the overpayment had occurred in the first place. 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. pre-sort (Max Sort Replacement), MTF These will all be processed and charged as a single piece Parcel, irrespective of format. We'll be able to give you an estimate of how long it will take to get your tax refund when your claim begins. This is operational now for Tracked & Untracked services to: Other destinations will be added as they become ready. Id rather have all the money sent to me in one go so I can use it however I need to use it. Out of the 3 solutions, this repayment method was universally preferred among participants with the exception of the digitally limited, who did not use mobile banking and were unlikely to be willing or able to do so. 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. It also provides a Prohibited & Restricted Goods check, Denied Parties check & HS code look-up all in one API call. Participants were also happy for messages to be delivered via the Personal Tax Account, seeing this as very secure and appropriate to the process. If you get an email about tax rebates that seems to be from HMRC, watch out! Participants who felt confident engaging online with HMRC were happy for subsequent communications from HMRC to be minimal. There are several reasons why you might overpay, and you often have to file a claim and prove you did. 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. 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. Payable order hmrc MoneySavingExpert Forum On this page we tell you more about how PAYE tax and National Insurance deductions work. There were 2 main reasons for the unpopularity of changes to tax codes as a solution. Universally, participants preferred the option of receiving the money as a lump sum rather than paid across the year. For lower amounts, participants tended not to mind waiting several weeks for the money, whereas participants were more motivated to access larger sums sooner. We will help you gather all the information you need, prepare and submit your claim. The system automatically issued a payable order if a NETP was due a repayment. These are explored in detail below, along with barriers experienced by particular taxpayer groups. INTL Business-NPC-Sgn-LLTR, MP0 (zero) 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. 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. Participants liked the idea of avoiding the need to remember passwords and usernames, instead utilising the apps facial recognition and touch ID features. 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. Disclaimer: The views in this report are the authors own and do not necessarily reflect those of HMRC. 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. As we work with HMRC on a daily basis we get regular updates and insights about their current workload so we can provide accurate estimates about expected timescales for a number of different HMRC enquiries such as tax rebate claims, changing tax codes, creating new tax accountsetc, Some other factors that can help speed up your claim include. If you don't want to register yourself, we have Taxamo Assure - an innovative pay-as-you-go solution. HM Revenue and Customs (HMRC) Research Report 670. The preference for improved automation was associated with a desire for reduced communication, with these customer groups highlighting their desire to be informed of what they perceived to be the necessary stages of the repayments process: notification of repayment, reason for repayment and the date the repayment is to be expected in their accounts. 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. (Payable order, 18 to 29, Less than 100). The HMRC OSS registration portal can be found here. For further information about sending parcels and IOSS please see ourInternational Business Non-Personal and Personal Correspondence User Guidepdf, 2.16 MB. 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 now operational to The Republic of Ireland. Art objects, antiques and collectibles that are sent to Italy can not be processed via IOSS. Always check with RIFT if you've been sent a dodgy-looking email from someone claiming to be HMRC. 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. The impact of Brexit and COVID19 has seen an increase in banks/countries no longer accepting payable orders. 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. Its easy to use, doesnt require me to be kept on hold for a long time, I can do it in my own time, (BACS Personal Tax Account, 18 to 29, More than 600). From Monday 7 November 2022 we have changed our PDDP undeliverable process. 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. 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. It's much more cost-effective to make payments electronically but when that's not. You can register and file your own tax returns or we can assist you to do so. How long do tax refunds take? | Your Tax Refund Some participants did not receive a repayment notification, and either: received a payable order (which was the first time they discovered they were due a repayment) or, proactively contacted HMRC to self-claim in year. Very occasionally the court may also approve removal of items from inside the home What if I still can't pay? 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. 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 more changes to the tax code system, the greater risk of something going wrong. If its done online it will be paid in 5 days so I dont really need messages in those 5 days. Kantar Public was commissioned to conduct 40 interviews with a range of repayment taxpayers to explore their views regarding the current repayments journey and proposed solutions. The website was very persistent in getting me to login with something I never thought I had in the first place. You can reach us on the phone or Livechat. Across the responses to the ideas, and aligned with their suggestions for improvements, participants valued automation where possible, transparency and a lump sum payment. 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. It will take only 2 minutes to fill in. Where this has not been communicated to the customer during the sales process, and they are not expecting additional VAT and duties (or the handling fee) this may lead to delays or returns. Should automatic repayments to taxpayers bank accounts not be possible, and the Personal Tax Account still be necessary to claim online, participants suggested streamlining the Personal Tax Account sign up process.

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