HM Revenue and Customs (HMRC) Research Report 670. On the whole, participants were quite satisfied with the repayment process they had experienced and, unless they had encountered a problem, did not feel that there was an urgent need to change the system. 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. 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. 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 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. Whichever IOSS solution you choose, Royal Mail can take your items and ensure they get delivered across the EU without delay. 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. Capable withdrawers in particular reported lacking motivation to persevere with sign-up or the authentication process if they encountered difficulties. This view contrasted with a perception among less tax savvy participants who felt the money was an unexpected bonus, viewing the repayment system as a passive savings account. Consequently, HMRC were sending repayments to NETPs with the knowledge they may not be able to cash them. Or, if you prefer to concentrate on selling, you may want to consider our assisted IOSS solutions with our partner Taxamo. Three transformational solutions were tested with participants: the option to authorise payment via taxpayers own mobile banking apps; payment into the account in which taxpayers receive their salary; and changes to tax codes. There are several reasons why you might overpay, and you often have to file a claim and prove you did. (j) Was the repayment via payable order/cheque? The interviews were conducted both online over Zoom and over the phone to improve accessibility for participants with lower digital confidence. Sale of goods). Participants also thought that if payments were paid in instalments alongside their salary, it would be more difficult for them to check that it had all been repaid, and there was a sense that the money being mixed up with their income could lead to confusion of their usual budgeting. As for how you get your refund, you can choose either a cheque or direct bank transfer. Those in the proactive group noted that they would have preferred to have avoided repayment by cheque and would have gone online if they had known it was an option. Furthermore, taxpayers without a smartphone that was compatible with banking apps were not confident at transacting online. At RIFT Tax Refunds, we'll check in with HMRC regularly during the process, provided you've signed a 64-8 Authorising Your Agent Form but you can also track your tax rebate progress using the RIFT Tax Refunds app. HMRC will try and pay out refunds using a payable order within 5 weeks, but it can often take a lot longer depending on their . 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. 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). 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. Once registered for IOSS in only one EU country, VAT can be collected at your online checkout and paid on all B2C sales of goods with value up to 150 into the EU by submitting a single monthly EU VAT return. 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. 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. If its done online it will be paid in 5 days so I dont really need messages in those 5 days. It can also be used for items with value up to 150 if IOSS is not suitable for you. We'll deal with HMRC for you. 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. 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. 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. 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. 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. While participants were willing to be involved in the authorisation of the payment, they preferred that to be the extent of their involvement. If we fight any HMRC enquiries for you (which is included free of charge) and if they did demand any money back,we would pay back the refund to HMRC ourselves.We will also send you a reminder when it's time to see if you have a claim next year. On this page we tell you more about how PAYE tax and National Insurance deductions work. Taxpayers can request repayment via Bankers Automated Clearing System (BACS) through their online Personal Tax Account, however, only a minority do so. Always check with RIFT if you've been sent a dodgy-looking email from someone claiming to be HMRC. So, what are you waiting for? 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. 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. If this happens and a customer is overcharged in this way, they can contact Swedish Customs to claim it back. 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. The research drew on thematic analysis to synthesise the findings and identify the different taxpayer groups. This was a popular option among current PAYE participants, who on the whole regarded it as a simple way to receive a repayment. 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. This publication is available at https://www.gov.uk/government/publications/taxpayer-experience-of-the-hmrc-repayments-process/taxpayer-experience-of-the-hmrc-repayments-process. This is operational now for Tracked & Untracked services to: Other destinations will be added as they become ready. The system automatically issued a payable order if a NETP was due a repayment. 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. Please note: Each destination is responsible for setting their own import controls on restricted goods. We'll then take our fee and send the rest of the money straight to you. 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. If your IOSS item cannot be delivered or the recipient returns the item, it will be returned to you. If youve got an app, you can log into it once, you can use face ID to authenticate it, and you wouldnt have to type in your details every single time, you dont have to find the website. 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. For most types of tax refund, the payment process all moves quite quickly once the claimed amount has been approved by HMRC. If HMRC wants your refund back, we cover it. There were 2 main reasons for the unpopularity of changes to tax codes as a solution. 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. These participants said that on receipt of the repayment notification, once they realised that they did not owe HMRC any money, they had only skimmed the contents of the letter and seen that inaction would still result in repayment. The EU's Import One Stop Shop (IOSS) can help you start or continue trading from GB into the EU. 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. Customers are advised to identify whether items being imported into a specific destination will require licences/certificates or incur additional charges. 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. Overall, participants wanted to retain a postal version of the repayment notification, as they felt they were likely to dismiss emails or texts from HMRC as fraudulent. HMRC has received notifications and complaints from taxpayers advising that they can no longer cash their payable orders in their country or their bank. 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. 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. 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. 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. 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. Speak to us 6 days a week. Id be less likely to claim online if its a long or a hard process, if I had to fill out loads of information. Every IOSS number is a total of 12 digits. It should always start with IM and then be followed with 10 numbers with no spaces, e.g. You have a range of IOSS options with Royal Mail. (g) What are their experiences of their relevant repayment process? 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. These are explored in detail below, along with barriers experienced by particular taxpayer groups. Changes to tax codes: This was the least preferred option across the sample, and the least understood.