is this right?

flanyflan

My partner works for a large company in South Wales. A number of his work colleagues are using an accountancy firm to reclaim tax back dated 4 years. They have to apply for something called a UTR and some have claimed as much as £10,000. But they are claiming for such things as the cost of travelling to and from work. I have done some research and to apply for a UTR it seems you need to be self employed. His colleagues are convinced that its all legal because its going through an accountant, as much as i would like the money it doesn't seem right to me. Any thoughts would be much appreciated.

Dazed_and_confused

to apply for a UTR it seems you need to be self employed

No idea where you've read that but it's untrue.

His colleagues are convinced that its all legal because its going through an accountant,

Not sure legality has much relevance here.

Remember HMRC tend to accept what is submitted to them and ask questions later. So someone might get £10k refund. And hand over say £2,500 to the accountant as their fee.

But if HMRC later ask questions and decide some of the claims are spurious they might decide to alter the returns. Lets say £9,000 needs to be repaid. Plus interest. And maybe penalties.

How much of their £2,500 do you think the accountant will contribute?

whizzywoo

A UTR is a Unique Tax Reference number. You need one of these in order to file a tax return.
It is not just self-employed people who have UTRs. Lots of people may need to file tax returns even though they are not self-employed.

The cost of travelling to and from work is not normally a tax deductible expense. However if you are travelling from your place of work to site offices for example, that will normally be an allowable expense.

Maybe your partner should speak to the accountant in question.

Dazed_and_confused

Maybe your partner should speak to the accountant in question.

Or maybe you could expand a bit on the nature of their job and where the work is done, shop, factory building site, steel works etc?

flanyflan

His colleagues don't travel around site only from their home to their place of work.

flanyflan

He works in Port Talbot Steel Works.[/QUOTE]

Dazed_and_confused

They may be being targetted as Port Talbot is, rightly or wrongly, perceived as easy pickings for the more unscrupulous companies.

https://www.theguardian.com/business/2018/jan/31/port-talbot-tata-steel-workers-honeypot-for-scammers

TadleyBaggie

flanyflan wrote: »

His colleagues don't travel around site only from their home to their place of work.

Commuting to and from work isn't something that cam]n be claimed a a taxable expense.

katsu

Are these accountants suitably qualified and registered? It sounds suspicious so they are unlikely to be legitimate if they are making incorrect tax refund claims for people.

uknick

I assume this thread is talking about the same scam;

https://forums.moneysavingexpert.com/discussion/6090102/tax-rebate