Industry News - 22nd February 2022
Consumer group Which? has urged taxpayers to avoid using so-called ‘refund firms’ to claim tax rebates.
Which? stated that people are losing hundreds of pounds by using third-party companies to claim tax rebates rather than going directly to HMRC.
Research carried out by the group found that one in five people had been either contacted directly by a tax refund company via email, phone, letter or text message or found one online.
Two in five of those contacted by a tax refund company said they used it in order to claim a tax rebate. Such companies often charge fees anywhere between 25% to 48% of the rebate an individual receives. Extra admin fees and VAT are often added on top, according to Which?.
HMRC told Which?:
‘We don’t accredit or in any way approve agents and take firm action against any not complying with the law.
It is important that people thinking of using a tax agent are clear in advance about fees and are satisfied they’ll get the service they sign up for.’
Internet link:Which? website