Tax Refund Company

sho12

I recently received a form from my union which asked me to fill in some details as I may be eligible for a tax refund. I did so and returned it, and then saw a BBC news story about people being eligible for tax refunds.

I have now received a letter from The Tax Refund Company, PO Box 16, Stockport, Cheshire SK1 3WR asking me to complete another form which will authorise them to act on my behalf in pursuing a tax refund, of which I will receive 59% and they will receive 41%.

This seems dodgy. Surely the tax office will refund me my money whether or not I return this form to 'Personal Taxation Services Ltd', as it states the company name on the form. Or perhaps I am wrong.

I was also put off somewhat by the fact that they tell me I'll be entered into a £10,000 prize draw if I complete the form!

I'd be very grateful to hear if anyone else has had a similar experience and/or can offer me some advice on what to do next.

Many thanks

Sho

PlutoinCapricorn

This subject has been raised many times in MSE, and the advice is always never to use such companies. The unions recommend them because they are paid to do so. You may need to make your own claim for cases such as buying extra items or cleaning your uniform, as HMRC will not know about this unless you tell them. PAYE overpayments should be picked up at least at the end of the tax year.

If you are happy to pay a company to save time and effort, then go ahead. I have never heard of a prize draw before: perhaps they are trying to attract customers as they are not getting much business these days because the word is getting around.

sho12

Thank you. I have read online that these companies claim that HMRC may get the amount owed wrong and that's why we should use them. What you say seems to be true though - why choose to give up the money to them?

According to the BBC tax refund story, people who have overpaid should be informed automatically. So I guess I'll just wait for that! Unless anyone has any other ideas...?

ceeforcat

https://forums.moneysavingexpert.com/discussion/3476039

Read the above thread, particularly jimmo's post which is entirely in keeping with my own thoughts on the matter.

sho12

Oh dear. I have filled in the form my union sent me before I knew of anything about this tax refund that's due anyway. i'll try to get back in touch with my union to make sure they haven't already authorised anything. obviously i won't be filling in the Tax Refund Company stuff.

heretolearn_2

Wow - they are taking half? That's high even for these companies.

While there are some posts in this forum that are critical of anyone making any charges for tax refunds - there are some things that are best dealt with by professionals (preferably an accountant) and it's worth paying their fee. Of course, I'm biased there as we do this but not at anything like 50% and I know of no reputable tax advisors/accountants who charge that level of %.

I also don't know any who would touch anything as basic as claiming allowances for uniform washing or the other sorts of things these companies get themselves contracts with the union on - mass numbers, very basic etc.... the amount is so small it's not worth doing unless you charge these daft fees, and the work so simple any one can do it perfectly well for themselves. Call the HMRC and they'll give you advice on what to do.

PlutoinCapricorn

One person on MSE reported being told by one of these companies that you need an advanced knowledge of tax law to claim refunds - this is ridiculous. These companies are a disgrace, and the unions should be ashamed of themselves for promoting them. I have asked my teacher friend to spread the word.

It may be true that some people's affairs are very complicated, but they need the services of professional accountants. If you have expenses such as compulsory professional or membership fees, publications, the uniform etc. then it is easy to do it yourself.

It is always a good idea to learn the rules, allowances, bands and amounts to see how PAYE tax works, and check at the end of the year to see if you have overpaid.

CLAPTON

well, while I personally would use them because I have sufficient knowledge to handle my own tax affairs, if they get back money that would not otherwise have been recovered then it's not such a bad deal.
I believe some people even use accountants to do their tax affairs.

FTBFun

This company isn't a member of a single accountancy or taxation professional body. I think that tells you all you need to know.

I wonder if John Lewis know their name is being used as a testimonial:

http://taxrebates.com/partners.html

McKneff

Your Union want a bollocking too for pedalling this scammy rubbish

ceeforcat

I know of a nurse who used one of these agencies - received £120 out of £250 tax refund - they did not even bother to ensure that her current code number now included the allowances that she had not previously been claiming.