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  • FIRST POST
    AstroBoy72
    Scammed by Entitlements Agency
    • #1
    • 16th Jul 12, 12:11 PM
    Scammed by Entitlements Agency 16th Jul 12 at 12:11 PM
    My wife was overpaying tax all last year so, we looked for the official tax website to find out how to get a refund. Like !!!!!!! idiots we thought taxrebate.co.uk was the official site to get the tax refunds so, filled out the form to get the refund pack. Filled out the form and waited for them to get back to us (still thinking it was a refund branch of the official HM Revenue & Customs).

    We received a letter from HM Revenue & Customs saying she was untitled to a refund and repayment would be made to The Entitlements Agency which we still thought was a part of the HM Revenue & Customs.

    Today we get a letter and cheque minus;
    17% processing fees +VAT.

    We were thinking why would the HM Revenue & Customs be charging fees when we realised that this is not all we thought it to be. You might think we were stupid but, there was no mention of any type of fees that would have to be paid and they made it look like they were from HM Revenue & Customs.

    Do we have any chance of getting this reversed or at least getting the fees reduced, we haven't put the cheque in the bank yet?

    I don't understand how this is allowed to happen, my wife worked very very hard for the money and we are in a situation where we really need it!

    Any advice would be great. BTW; they didn't send the P60 back with the cheque, should we be worried?
    Last edited by AstroBoy72; 16-07-2012 at 2:21 PM.
Page 4
    • dori2o
    • By dori2o 11th Mar 16, 10:53 AM
    • 7,236 Posts
    • 12,078 Thanks
    dori2o
    I also requested a tax claim form pack but was only sent a tax claim form I have now just been sent an authorisation letter that they want me to sign allowing them to act as my agents if I haven't given them authority then the tax office should not release any rebates due should they ?
    Originally posted by Kaycee63
    No they shouldnt.

    Use the correct agency folks, it will save you hassle in the future.
    Originally posted by DCFC79
    I have just learnt through HMC that unless I cancel the contract with this company that I am locked in for the following term: 2010 through to 2016 which mean any tax rebate i may have for this period of time has to go through this company! I am sure there was no mention of the length of term of the contract I thought it was a one off! There was also no mention of a fee for doing this.
    Like you the papers that came through the door looked like they were form the HMC department not a private company. I hadn't thought about the P60 form!
    The government needs to shut this company down. I will never reclaim tax for that period of time again because they are not getting any more of my money!
    Currently they are not doing anything wrong, unless they are breaking the law or acting outside the guidelines set for them there is nothing that can be done. I deal with these claims (we get thousands every week) and I've seen the claim forms from many different companies.

    In my opinion the biggest problem with many of these companies is that they do no work at all with regards to these claims other than to distribute their claim forms, or make themavailable tofillin and print off fromthe internet. They don't check claims to ensure the person is claiming the right thing, many don't submit a 64-8 or include a substitute 64-8 within the claim form, and they don't in most cases even provide a restricted authority (similar to a 64-8 but only allows them to deal only with the claim and no other part of the customer record).

    They don't even check to see if the taxpayer has submitted claims with thembefore and therefore already received the tax relief they are claiming for.

    Other than providing the forms the only work some of these companies do is to cash the payableorder/cheque when it is received.

    Originally posted by Force5
    There seems to be some confusion here over the authority of the 'agent' to receive the repayment.

    Having a 64-8 authority on the record is not enough for the refund to be automatically issued to the agent.

    Even where a 64-8/64-8 substitute is received and authority is held on the record,it still requires confirmation fromthe taxpayer to advise they want the refundto be issued to the agent. Without that request the refund would be issued to the taxpayer.

    Also, you do not have to have an authority on the record in order for the repayment to be issued to your agent or nominee. Simply providing the details of where you want the refund to go is sufficient.This is what is known as a R38 or Bare Nomination. The taxpayer remains in control of this and can at any time prior to the repayment being issued terminate that request and ask to be issued the refund directly.

    However, these refund companies have been burned too many times by taxpayers phoning up and cancelling the R38 and then not paying the refund company for the 'work' done.

    The refund companies then started to change their forms and rather than just including a Bare Nomination for them to be issued the refund, they started to include a Deed of Assignment,

    This guarantees that they receive any refund due aslong as theirs is the only assignment in place.

    If a taxpayer legally assigns a repayment to a third party by a deed or letter, that third party (the assignee) becomes the person (or company) legally entitled to the repayment. The deed or letter of assignment is legally binding and we have no option but to issue the repayment to the person (or company) to whom it has been assigned.


    The assignment can only be revoked if both the taxpayer who made the assignment and the person to whom the repayment was assigned both agree to it being revoked. The agreement to revoke the assignment must be in writing and signed by both parties before being sent to HMRC. Note: An Agent cannot revoke an assignment on his client’s behalf. Both parties to the assignment must sign an agreement to revoke the assignment otherwise it must be returned and the appropriate signatures requested.
    by HMRC Guidance
    However, an assignment is only valid if:
    An assignment may be made by either a deed or letter and in both cases in order to be valid must meet the following criteria
    • It must be absolute, that is it must transfer the right to the repayment from the taxpayer to the assignee unconditionally
    • It must contain a written signature made by the taxpayer entitled to the repayment (‘wet’, scanned, photocopied and faxed signatures are all acceptable)
    • The actual assignment must be submitted to HMRC (telephone call reporting it's existence or photocopy will not suffice)
    by HMRC Guidance
    The Deed/R38 shouold form it'sown section within the claim form.It must state that the payment is assigned UNCONDITIONALLY, and the signature should be the last part ofg the section,i.e.there can be no further terms/conditions noted after the signature box.

    As well as those criteria above the way the forms are set out is specific. The claim form itself cannot contain the main terms and conditions of the agreementwithin the actual claim, deed of assignment, 3rd party authority. The T&C can formpart of the document, but should be on a seperate sheet/page

    HMRC produced new guidelines and specifications fromAugust 2015 which laid down how these companies must set out their claim forms,what must be included, what must not be included, etc etc

    Any terms that are included within the claim document must contain a paragraph confirming HMRC are not aware of and do not condone the T&C's, and theymust also not be contained within the Deed/R38 signature section.

    Also, the assignment CANNOT include future years, that includes the current tax year as the tax is not deemed paid until after 5 April of the year in question. So as it stands at todays date an assignment can only assign the repayment to the assignee for the tax years 2011/12, 2012/13, 2013/14 and 2014/15.

    Any assignments that do not conform to the relevant specifications, or which include future years are rejected and returned to the agent, and the claim is not processed.

    Unfortunately once you have assigned a year or a number of years to these companies, then unless you can get them to agree to revoke the assignment, that company effectively owns any tax refund/relief due for those years, but only those years. The assignment is not a continuing arrangement.

    Having a Deed of Assignment in place is NOT the same thing as giving authority for that company to act on the taxpayers behalf.

    Unless the refund company submits a 64-8, 64-8 substitute or provides a signed restricted authority additionally or included within the claim form, then they do not have the ability to call/write to HMRC and request information/ask about the claim etc.

    You can only have 1 Deed of Assignment for each year. If you were to submit an assignment to one company and claim a tax refund of tax you had overpaid, then the refund would be issued to the assignee

    If you were then to sign another assignment with another company to claim tax relief on expenses that you had forgotten in the original claim, and the claim included a year(s) that were included in the original assignment (which had not been revoked), then the original assignment would take precedent for those years which were originally assigned tothem, and the original company would receive the repayment for those years. The new company would only receive repayments due which have not been assigned previously.

    We see this issue alot as people just fill in these claim forms without thinking, even if they have had the refund/relief due previously. I've seen cases where a person has filled in 4 or 5 of these claim forms within a 6month period assigning each one to a different claims company, and most of the time they are claiming for exactly the same tax relief in each claim (uniform laundry expenses). Not only is it a waste of the taxpayers time, it's a waste of HMRC resources having to deal with multiple claims for the same expenses from the same person. Whilst the refund company has no associated costs,they just wait for the money to roll in.
    Last edited by dori2o; 11-03-2016 at 11:13 AM.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • Crinkleduster
    • By Crinkleduster 8th Jul 16, 2:14 PM
    • 2 Posts
    • 0 Thanks
    Crinkleduster
    Avoid like the plague..... You know this now. Especially Taxrebate.co.uk robbing !!!!!!!s. They charge almost 50% of the refund for NOTHING. It's just directed through them. Scumbags.
    • Crinkleduster
    • By Crinkleduster 8th Jul 16, 2:19 PM
    • 2 Posts
    • 0 Thanks
    Crinkleduster
    Taxrebate.co.uk scam
    Make no mistake it is a scam. Loosely legal.... Somehow but absolutely disgusting activity. 40% of your tax back to them PLUS other fees! AVOID these scumbags.
    • mlnr21
    • By mlnr21 18th Jul 16, 2:43 PM
    • 1 Posts
    • 0 Thanks
    mlnr21
    Similarly I did this, realising my mistake after I had sent off the forms to the company.
    Fortunately I contacted the HMRC to receive my repayment before the entitlement agency had sent the forms to the HMRC. Will they still be able to take a percent of this?
    • Eprincess
    • By Eprincess 25th Jul 16, 6:50 PM
    • 1 Posts
    • 0 Thanks
    Eprincess
    Need some advice please
    I filled in a tax return form from hmrc few months ago received my tax code for this year and then a letter saying I was due some tax however haven't received anything yet so I rang hmrc the gentle man on the phone said to me they have sent the money to the tax repayment agency and that they would take a percentage and send me the rest why would they send money to an agency when I went directly to hmrc? How would I get the full amount what I'm owed
    • Dazed and confused
    • By Dazed and confused 25th Jul 16, 9:29 PM
    • 1,386 Posts
    • 568 Thanks
    Dazed and confused
    Need some advice please
    I filled in a tax return form from hmrc few months ago received my tax code for this year and then a letter saying I was due some tax however haven't received anything yet so I rang hmrc the gentle man on the phone said to me they have sent the money to the tax repayment agency and that they would take a percentage and send me the rest why would they send money to an agency when I went directly to hmrc? How would I get the full amount what I'm owed
    Originally posted by Eprincess
    What exactly did you fill in/sign a few months ago? Did you do this by logging into your own personal self assessment account on gov.uk?
    Have you ever used an accountant or tax refund company in the past, even several years ago?
    • Mph
    • By Mph 13th Sep 16, 2:40 PM
    • 2 Posts
    • 2 Thanks
    Mph
    I feel your pain
    My daughter has just returned from working abroad. She was directed to The Tax Repayment Agency after googling tax rebate and has been charged a massive 40%! I accept she should have read the small print but genuinely thought she was on the correct website. A very costly lesson learned. Shouldn't these agencies be named and shamed somehow?
    • mkgb
    • By mkgb 14th Nov 16, 9:49 PM
    • 1 Posts
    • 0 Thanks
    mkgb
    How to get your money back
    I realise this reply is being written a long time after the original posts but it may be found by someone.


    If you feel you have been scammed and unfair deductions have been made form your TAX claim, here is how to deal with it:


    We got our money back from the Entitlements Agency by complaining through the Legal Ombudsman. The ruling was in our favour on a large number of points, including misleading website and lack of contract and lack of information about the right to cancel / cooling off period. Entitlements agency had the cheek to try and argue that they weren't selling anything and therefore there was no need for a contract. LOL. They are of course selling a service.


    When searching for Entitlements Agency on Google now brings up The Tax Repayment Agency. have they changed their name, the web site looks familiar. Anyway, I'm sure the method of getting your money back would apply to many such 'service providers'


    I suggest you could also go directly to small claims court as a precedence has now been set by this ruling. Either way persevere and get your money back. Don't let them get away with it.
    Last edited by mkgb; 14-11-2016 at 10:56 PM.
    • a loforese
    • By a loforese 19th Jun 17, 1:30 PM
    • 2 Posts
    • 0 Thanks
    a loforese
    Hello you All,


    19/06/17


    Same thing happen to me just received cheque minus 40% commission plus VAT. what all of you mentioned previously it s happen to me, not aware I wasn't dealing with HMRC. They use same format of HMRC documents also same colour , pale green. Apparently they charges what they like,
    Someone in the authority need to do something to stop this scam. We are all honest scammed citizen
    • a loforese
    • By a loforese 19th Jun 17, 1:34 PM
    • 2 Posts
    • 0 Thanks
    a loforese
    good News
    Hi Thank you, for the information, I will do the same
    • dori2o
    • By dori2o 21st Jun 17, 5:57 PM
    • 7,236 Posts
    • 12,078 Thanks
    dori2o
    I realise this reply is being written a long time after the original posts but it may be found by someone.


    If you feel you have been scammed and unfair deductions have been made form your TAX claim, here is how to deal with it:


    We got our money back from the Entitlements Agency by complaining through the Legal Ombudsman. The ruling was in our favour on a large number of points, including misleading website and lack of contract and lack of information about the right to cancel / cooling off period. Entitlements agency had the cheek to try and argue that they weren't selling anything and therefore there was no need for a contract. LOL. They are of course selling a service.


    When searching for Entitlements Agency on Google now brings up The Tax Repayment Agency. have they changed their name, the web site looks familiar. Anyway, I'm sure the method of getting your money back would apply to many such 'service providers'


    I suggest you could also go directly to small claims court as a precedence has now been set by this ruling. Either way persevere and get your money back. Don't let them get away with it.
    Originally posted by mkgb
    I realse that this post is more than 6 months old but I'd be very interested to know whether you have passed this information on to HMRC for them to look into further?

    Does anyone know if its possible to review this decision online?
    To equate judgement and wisdom with occupation is at best . . . insulting.
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