Consultation launched to tackle tax rebate reprobates

We have all seen them, constant advertising to claim marriage tax allowance rebates, or tax reliefs for working from home.

Some almost convince that they are promoted by or are associated with HM Revenue and Customs, when the reality is that they neither approved nor partners of HMRC.

‘Which’, the consumer organisation, refer to some of these organisations as ‘tax rebate reprobates’, charging hundreds of pound for services that are simple and free to self administer with HMRC directly. often the reclaim is applied using assignment methods which then direct all current and future tax refunds to potentially an unscrupulous agent. These arrangements historically can only be mutually cancelled.

Raising standard in tax advice

So Wednesday 22nd June 2022, HMRC launched a 12-week consultation entitled “Raising standards in tax advice: protecting customers claiming tax repayments”.

This consultation proposes measures to protect the public from unscrupulous repayment agent practises.

It seeks views on:

  • Restricting the use of assignments, where the legal right to a repayment transfers from a taxpayer to an agent
  • Introducing measures designed to ensure taxpayers see material information about a repayment agent’s service before entering into a contractual agreement
  • Requiring repayment agents to formally register with HMRC

The HMRC would value your input to the consultation.

As well as presenting to various forums over the coming months, the Agent Policy team will hold a number of roundtable discussions.

Anyone interested in attending can email repaymentsconsultation@hmrc.gov.uk.

You can do it yourself

Tax payers don’t need an agent that charges high fees to access their rightful tax allowances and rebates due. Using the HMRC Personal Tax Account (PTA) or gov based claim tools makes it easy.

What if I need help?

If you need assistance then there are those regulated to provide tax advice and assistance. It is reasonable to pay a charge for such assistance, although this should not be a significant portion of any or all future refunds amounts due.

PAYadvice.UK 26/6/2022

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