Impact assessment

Overseas UK VAT-registered traders - non-established taxpayers (NETP)

Published 8 November 2021

Project objectives

The objective of this project is to stop the issue of payable orders to overseas VAT Traders, known as NETP (non-established taxpayers). These customers are registered for UK VAT but do not have a business address in the UK. If they are due a repayment our VAT systems automatically issue a payable order.

We have received notification and complaints from customers advising us they can no longer cash their payable orders in their country or their bank. With the impact of EU Exit and COVID-19 we have seen an increase in banks/countries no longer accepting payable orders. As HMRC we are sending repayments to customer with the knowledge they may not be able to cash them.

To address this issue we are creating a Gform that will enable NETP customers to send us their bank account information so that we can prevent the issue of a payable order and send an electronic Clearing House Automated Payment System (CHAPS) repayment instead.

Our systems do not currently have CHAPS functionality or the ability to store overseas bank information. Once the customer has completed the form, which is accessed via the Government Gateway with their Government Gateway ID (GGID), our Corporate Treasury staff will set a lock on their customer record to prevent the payable order (PO) being automatically issued, a CHAPS repayment will be issued instead.

From the perspective of the customer journey they will receive their repayments directly into their bank account without the need to visit their bank to cash the payable order or if they can no longer cash them they will no longer need to contact HMRC to cancel the PO and request a CHAPS repayment.

Information requested on the Gform will include:

• VAT registration number
• address
• email address
• bank account information
• payable order information if necessary

Customer groups affected

Overseas VAT registered traders (NETP)

What customers will need to do

What customers need to do as a result of the change.

If customers would like us to send any repayments directly to their overseas bank account instead of receiving a payable order they can enter their details onto the new Gform. If they have already received a payable order and need it cancelling they can also provide details of the PO that requires cancelling.

How customers will access this service.

Customers can access the Gform by logging onto the government gateway with their GGID.

When customers need to do this

When they want to provide bank details for all future repayments, cancel a payable order, amend or update their bank details.

Assessing the impact

We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty; and section 75 of the Northern Ireland Act:

• racial groups
• gender
• gender reassignment
• sexual orientation
• pregnancy and maternity
• marriage and civil partnership
• people with dependents and those without
• political opinion (for Northern Ireland only)

There is no evidence to suggest any specific impacts on those customers within any of the protected characteristic groups listed above. Extra support will be provided as required.

Disabled and not disabled

Impact on customers

Some customers may be unable to use online services

Proposed mitigation

Customers who are unable to use online facilities can telephone the VAT helpline or write to the Variations Unit

Age

Impact on customers

Some customers may be unable to use online services

Proposed mitigation

Customers who are unable to use online facilities can telephone the VAT helpline or write to the Variations Unit

Religion or belief

Impact on customers

Some customers may be unable to use online services

Proposed mitigation

Customers who are unable to use online facilities can telephone the VAT helpline or write to the Variations Unit

People who use different languages (Including Welsh Language and British Sign Language)

Impact on customers

There will be a positive impact for customers who are based overseas as they will be able to provide bank details securely at a time that is convenient to them – this service will be available to customers who are already interacting with HMRC via online services to submit their VAT returns.

Opportunities to promote equalities

We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.

Opportunities have been considered and none have been identified.

A full equality impact assessment is not recommended.