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. 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. 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). 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. 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. You're self-employed and your payments on account are too high. An underlying motivation barrier to claim repayment via BACS, common among passive repayment recipients, was inertia and the existence of a default option. It costs nothing to find out if you have a claim. If this happens it could result in your customers being charged VAT additionally on delivery along with a small handling fee. pre-sort (Max Sort Replacement), MTF 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. 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. I would feel a bit funny, its between me and HMRC, especially if its more money. 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. We are continuing to work with the Swedish Post and will provide an update once this issue has been resolved. See below for further details. 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. Linked to this, those with negative experiences of fraud in the past were concerned about the authenticity of the P800 notification, especially if they were unclear about the reason for the repayment. Dh has a letter today which is headed tax calculation and says this letter shows a tax repayment due (for a year in which he was made redundant). Aversion to cheques stemmed from the perceived hassle of depositing them in person in a bank, exacerbated by local bank branch closures, and the timing of the repayments being during a COVID-19 lockdown. 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. Those who had received a cheque were habituated to waiting for it and those who had contacted HMRC by phone were more likely to do so again to claim future repayments. Want to chat to a member of our team? DDP is available to a limited, but growing, list of EU destinations. You dont want it to come across youve suddenly had this inheritance come from HMRC. We often link to other websites, but we can't be responsible for their content. 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. They spontaneously suggested using Face ID technology to help streamline the process and avoid the need to remember or reset Government Gateway details. Disclaimer: The views in this report are the authors own and do not necessarily reflect those of HMRC. (BACS Personal Tax Account, 45 to 64, Less than 100). Participants felt it would be important for them to receive notification and explanation of the repayment so they were not confused or concerned by an unexpected deposit. (g) What are their experiences of their relevant repayment process? 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. You cant have extra money appearing without knowing. 21% in Belgium. 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. Alternatively, you can register for and pay VAT in each member state you are selling goods to. It will take only 2 minutes to fill in. This solution will allow you to comply with the new rules and ensure a smooth delivery experience for your customers. 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. There were 2 main reasons for the unpopularity of changes to tax codes as a solution. Then anywhere from several days to 3-4 weeks on top of that to receive your rebate. 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. 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. A payable order is one of the ways HMRC pays out tax rebates. An HMRC-issued cheque that is sent to a taxpayer 21 days after notification that a tax repayment is due if alternative electronic payment methods are not utilised or unavailable. RIFT will handle the entire tax refund process for you from start to finish. The amount of time it takes for a tax refund claim to be processed and then paid is typically between 8-12 weeks. Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. Both the digital by default and capable withdrawer groups suggested that the Government Gateway and Personal Tax Account sign up processes need to be simplified. In Portugal this is known as the Nmero de Identificao Fiscal (NIF) - for individual people and the Nmero de Identificao de Pessoa Coletiva (NIPC) for companies. 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). All it means is the taxman doesn't know he owes you the money. You can find more information about these changes here, that the European Commission has published and here is further guidance provided by the UK Government on these changes. We also use cookies set by other sites to help us deliver content from their services. This is operational now to Germany, France, The Republic of Ireland, The Netherlands, Portugal, Austria, Cyprus & Malta. 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. I dont know enough about tax codes to be able to know if its right or wrong. A lot of the time, people don't even realise how many of their day-to-day expenses qualify for tax relief. There were no dropouts observed once a taxpayer had successfully set up and/or logged into their Personal Tax Account. An attachment order, which lets HMRC (or its debt collectors) take possessions and goods from your business or from outside of your home. While there was an expression of discomfort with HMRC having their bank account details, participants typically had high trust in HMRC and were unconcerned about sharing this information. 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. 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. they did not contact HMRC to process BACS payment and instead preferred to wait for a payable order/cheque), and therefore may have decided to not engage with this research. If these items are sent to Italy via IOSS, the overseas recipient may be charged VAT. 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. Just answer a few simple questions and we can tell you whether the expenses you've had to pay out in the course of your work meant that you may have paid more tax than you should. VAT: Was an option to tax valid? 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. 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. What happens next depends on your situation. Just provide your IOSS number and full customs data in the pre-advice you send us. 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. To register for an EORI number visit https://www.gov.uk/eori for more information. HMRC issues a high volume of P800 tax overpayment notices to taxpayers each year (around 3.5 million in 2021). 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). For items that were undeliverable up to and on 31 October 2022 the previous process will need to be followed. 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. Dont include personal or financial information like your National Insurance number or credit card details. You can register and file your own EU VAT returns. We use some essential cookies to make this website work. To this end, some suggested that communications could include advice about how to avoid overpayments in future, linked to the reason for overpayment. Capable withdrawers in particular reported lacking motivation to persevere with sign-up or the authentication process if they encountered difficulties. 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). 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. With our IOSS service, you calculate and charge your customer at the point of sale the VAT payable at the destinations VAT rate. You have accepted additional cookies. 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. You can reach us on the phone or Livechat. HMRC has today announced the launch of a consultation on the IR35 off-payroll working rules, with a view to eradicate the "massive problem" of double taxation. This is operational now for Tracked & Untracked services to: Other destinations will be added as they become ready. Those in the low online trust group in particular preferred to be paid by cheque and generally avoided online transactions. The new rules could impact how you do business in the EU. 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. VAT: Late payment interest rates increased, VAT: DIY Housebuilders Scheme deadline for claims extended. 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. Participants often assumed that HMRC had customers bank details and would be able to process payments using this information. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to 3,023. Intl Bus Pcl Track&Sign Xtr Cmp Ctry, MP8 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. Dont worry we wont send you spam or share your email address with anyone. It's a lot like a cheque, and is either sent to you or directly to your bank. On certain items, where the VAT rate is not 25% - which is mainly books and magazines - these may go out in the ordinary VAT flow where VAT and other charges are added. (BACS Personal Tax Account, 60+, More than 600). Patterns with regards to the context of respondents were used in the categorisation. 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. Your item will be handled Delivered Duties Unpaid (DDU). Secondly, some participants expressed a wide range of concerns about the involvement of their employer. Participants differed slightly in terms of how much additional communication they wanted after the P800, based on their taxpayer group and whether they had experienced any issues in claiming their last repayment. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. Payable orders are like cheques. 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. Aura, from Hurricane can help you identify these in your checkout. 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. It felt like I was going round in circles. Those in the proactive group felt strongly that it was not their responsibility to claim the payment, but rather HMRCs role to correct an error. Some taxpayers may not have engaged at all with HMRC (i.e. 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. Once we've got all your information, it usually takes about 4 weeks to put your claim together. It will take only 2 minutes to fill in. Always check with RIFT if you've been sent a dodgy-looking email from someone claiming to be HMRC. As of 1 July 2021, items imported to the EU with a value of 22 or less became no longerexempt from VAT. You have more than one job and aren't getting the full value of your tax-free Personal Allowance. The more changes to the tax code system, the greater risk of something going wrong. 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. As an alternative to DDU and IOSS, we have developed a Delivered Duties Paid (DDP) service. I spent 4 days trying to find the right documents and trying to login. Some participants were also confused about whether repayment via PAYE would mean that the repayment would be subject to tax. The sort of documentation we may require will depend on the type of claim you are making, but can include receipts for work expenses/petrol, records of subscription payments and so on. commercial goods or gift). The choice is yours. When you submit your claim details to us we will be able to give you a fairly accurate estimate of how long your claim will take. If so, you just need to assign their IOSS number along with all the normal customs data in the pre-advice to us for the items sold through that marketplace. These charges will depend on the country you are sending to, the value and nature of the item (e.g. The declaration must include a description of the contents and their value. Recruitment was conducted with the help of HMRC records. They key benefit lay in the ease of logging into their existing banking app, as taxpayers often used face ID or touch ID fingerprint to do so, avoiding the need to remember usernames and passwords or to set up an account. The points at which taxpayers could drop out of the process were: receiving the repayment notification; their response to reading the repayment notification; or their attempt to sign in to or set up their Government Gateway or Personal Tax Account. They must have our bank account details on file. Mon-Thurs 08:30 - 20:30 Fri 08:30 - 18:00 and Sat 09:00 - 13:00. 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. 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! 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. 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. Use our online tools to find out if you're owed money by HMRC. (Personal Tax Account BACS, 18 to 29, Under 100). 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. This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service. 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. 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. 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. To help us improve GOV.UK, wed like to know more about your visit today. It's annoying, but it's all about protecting you. 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 . You can also use our tax refund calculator to see how much you are due if you do make a claim. The findings in this report reflect the attitudes of participants at the time it was conducted. We have three options available to help you manage these changes depending on the size and nature of your business. Whichever IOSS solution you choose, Royal Mail can take your items and ensure they get delivered across the EU without delay. 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. 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. Repayments are usually made within 30 days of HMRC getting your VAT Return. There are several reasons why you might overpay, and you often have to file a claim and prove you did. If its done online it will be paid in 5 days so I dont really need messages in those 5 days. 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. Intl Bus Parcels Signed Extra Comp, A Parcel is anything that is not a Large Letter It should NOT then be recorded as an expense. Participants were purposively selected to take part in the one-to-one interviews, and the final sample contained a mix of genders, ages, repayment amounts and P800 notification methods. The earliest date theyll pay interest from is 6 months and 13 days after the start of your accounting period. 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. Please note: Each destination is responsible for setting their own import controls on restricted goods.
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