No one wants to be paying too much tax and if you are, you want to make sure that you receive the repayments as soon as possible.
There are plenty of agencies that claim to make your life easier by reclaiming tax refunds on your behalf but, in some cases, they could be holding your money for longer than necessary or even making claims without your knowledge!
There has been a rise in complaints to HM Revenue & Customs (HMRC) about companies claiming tax repayments on individuals’ behalf.
The latest research from Money Box revealed that there were 1,808 cases between January 2022 and 16 August 2022, compared with 749 cases in 2021.
How does this happen?
Companies can claim your tax repayments if you have signed a “deed of assignment”, which permits them to contact HMRC on your behalf.
However, due to the market being unregulated, some companies take advantage by making the terms of the agreement unclear.
If this is the case, you may have unknowingly granted permission for the company to hold your money or take a larger fee than you expected.
What can you do to prevent this?
Currently, HMRC is looking into the use of repayment agents but no action has been taken so far.
To protect yourself from agreeing to unreasonable terms, it is best to seek advice from your accountant on which repayments you are entitled to and how to claim these.
Your accountant will have a clear idea of the taxes you must pay, as well as being able to recognise any opportunities to reclaim overpaid taxes that you may miss, and when you can reclaim them.
Think you might be due a tax refund? Contact us.