Marriage allowance

Robert4321

 Received letter from HMRC on the 26th March saying I was owed £901.On the 17th April received email saying cheque should be with me within 21days but due to Covid-19 could be delayed and that the cheque was being held in a segregated, non-interest bearing account and will be with me asap.
 On the 21st May I received the cheque for £499.14p this is the refund calculation
Tax overpayment           £901.97p
Claim Administration & Processing fee       (£335.69)
VAT (Payable to HMRC at 20%)
AMOUNT(S) PAYABLE TO CLIENT    £499.14p
I was never told anything about admin fees. 
I was under the impression that you did not have to pay to get money I was entitled to it seems to me this a scam

xylophone

You applied through  a tax refund company? It has cost you money which you would not have paid had you simply claimed yourself through HMRC.
https://www.litrg.org.uk/tax-guides/tax-basics/how-do-i-claim-tax-back/using-tax-refund-companies

sheramber

It looks like your refund had gone to a claims company who take a fee before passing the rest to you.

 Did you use   a form from a claims company  to  claim the marriage allowance? In signing that form you authorised them to claim on your behalf and take a fee for doing so.
 What website did you use to claim?

A search back this thread will reveal many others who have been  caught this way.
It is not a scam  but they  rely on people not reading carefully what they are signing.

Dazed_and_C0nfused

I was never told anything about admin fees. 

As anyone claiming Marriage Allowance cannot pay less tax as a result of applying then it was presumably your spouse that actually applied and you are the recipient.

Which means that this is your tax refund not your wife's so you must have signed something for the company to be entitled to a cut of your tax refund.  

If you haven't and your wife did everything then you could challenge the company to provide evidence you have agreed to their fee.

TadleyBaggie

The problem with these 3rd party claim companies is that once they have registered with HMRC as your "agent", HMRC will continue to deal with them for future matters instead of directly with the tax payer. 

sheramber

That is because the person signed an authority  to do that.
HMRC are not responsible for people not reading what they are signing

Jsuk

Does anyone know how to "delete" these companies, ie. Stop them being your agent? My wife used one for a tax rebate once and now she is due another rebate this company is still involved, I've looked at the .gov website but cannot see how to stop them being her "agent". Thanks

Dazed_and_C0nfused

Why not try phoning HMRC, they will either remove them as her agent or explain how she can do it (might have to be in writing?)

Don't forget though she may have signed a legally binding agreement which means they get any refund due for specific tax year(s).

Debbiepreedy

Robert4321 said:

 Received letter from HMRC on the 26th March saying I was owed £901.On the 17th April received email saying cheque should be with me within 21days but due to Covid-19 could be delayed and that the cheque was being held in a segregated, non-interest bearing account and will be with me asap.
 On the 21st May I received the cheque for £499.14p this is the refund calculation
Tax overpayment           £901.97p
Claim Administration & Processing fee       (£335.69)
VAT (Payable to HMRC at 20%)
AMOUNT(S) PAYABLE TO CLIENT    £499.14p
I was never told anything about admin fees. 
I was under the impression that you did not have to pay to get money I was entitled to it seems to me this a scam

I registered with HMRC, had a letter back from HMRC stating I would recieve the cheque, I never applied to a 3rd party, and was surprised to see the deductions also.  I am appawled !!

sheramber

You must have used the company to make a claim previously, such as  expenses for washing uniform at home. and the repayment mandate from that claim will still be in force.
You need to contact HMRC  and  ask about removing th company from your records.
Did you apply online for the marriage allowance or were you sent a form to complete?

polymaff

Debbiepreedy said:

 I am appawled !!

WLTM a ratchet, eh?