Taxpayers who have reclaimed tax payments using the repayment agent Tax Credits Ltd since December 2021 are being directly refunded by HMRC.
HMRC found that up to 60,000 taxpayers who used the repayment agent Tax Credits Ltd signed up through a new online process.
The company introduced the process in December 2021 and following an investigation, HMRC were not satisfied that the new method and documentation led to a valid assignment of repayments to Tax Credits Ltd.
They are now making payments directly to affected customers.
Opinion – do your own free reclaim
Tax payers are often lured into to using agents to claim rebates from HMRC. Often these reclaims are easy to self undertake, yet some reclaim agent charge significant proportions of rebates due and use a method known as assignment which has come into significant criticism as it diverts all future rebates claimed via the rebate agent.even if they have not done the work!
The government are closely monitoring these organisation, referred to as ‘Rebate reprobates’ by Which.
Do your own free reclaim.
Now some individuals may need assistance because they either are not technology savvy nor understand the tax reliefs that apply to their circumstances. Be careful, there are good agents which can assist for a moderate fee, avoid those with high fees and the use of assignments. They are not doing work that justifies their high charges.
PAYadvice.UK 16/10/2022
