Is this a tax refund ??

Alex9384

Hi all.

I was never really interested in taxes too much. Last time I tried to claim anything was I think in 2015 but I wasn't eligible because I was simply earning "too much". Since then I didn't really care anymore.

About a month ago, my friend asked to borrow £350 from me because he needed "to pay an accountant for tax refund she did for him".
I first thought it was some scam because he needed to pay upfront. But about a week later he received around 3K. The payment info is "HMRC self assessment" in his banking app.

We both work for the same company and we are on a relatively low income, though he earns a bit more than me, so now I'm wondering if I'd be eligible too. But I've never heard of this before. Is this some new thing?

My friend says the accountant applied for him, then he received an UTR by post and had to provide P60 for the last 3 years, plus bank details.

What info do you need about me to be (maybe) able to give me more info? My friend is not very useful in this.
I'm employed (4 days a week), never received any benefits in the UK, single, no kids, renting a tiny house. Living in the UK since 2014, same job since that year. Gross annual income around 23.000

Edi81

There is nothing that makes me think you are due any refunds. 

molerat

These tax refunds are quite often a scam especially if you have to pay up front to get it.  The "accountant" submits a fraudulent SA simply claiming things you are not entitled to and you get a refund.  When your tax comes up for review HMRC notice this and take the refund back and maybe prosecute for tax fraud as "you" submitted the fraudulent SA.  "Accountant" walks away with £350 for half an hours work.

Alex9384

Edi81 said:

There is nothing that makes me think you are due any refunds. 

Thanks mate. Btw, are you an accountant yourself? Or just well versed in these things?

Alex9384

molerat said:

These tax refunds are quite often a scam especially if you have to pay up front to get it.  The "accountant" submits a fraudulent SA simply claiming things you are not entitled to and you get a refund.  When your tax comes up for review HMRC notice this and take the refund back and maybe prosecute for tax fraud as "you" submitted the fraudulent SA.  "Accountant" walks away with £350 for half an hours work.

So better not to try.. Will see what happens to my friend. When do you think they would normally notice this? In April?

[Deleted User]

Alex9384 said:

molerat said:

These tax refunds are quite often a scam especially if you have to pay up front to get it.  The "accountant" submits a fraudulent SA simply claiming things you are not entitled to and you get a refund.  When your tax comes up for review HMRC notice this and take the refund back and maybe prosecute for tax fraud as "you" submitted the fraudulent SA.  "Accountant" walks away with £350 for half an hours work.

So better not to try.. Will see what happens to my friend. When do you think they would normally notice this? In April?

There have been many similar stories on this forum - they have not ended well. Avoid!

Brie

If you are working for a single UK company and being paid via PAYE then it's unlikely you are due any kind of refund.  Usually it's all done automatically if you are and you get a changed tax code rather than an actual cheque or whatever and you simply pay less tax in the following tax year.  Unlike in other countries (US & Canada spring to mind) where tax is deducted from your pay at a set rate and then you need to file a return to ensure all of your deductions are taken into consideration.  If you have more than one job in the UK or have self employed earnings and need to submit proof of business expenses then you would have to file a return and might get a refund (or tax bill).

Pennywise

Alex9384 said:

molerat said:

These tax refunds are quite often a scam especially if you have to pay up front to get it.  The "accountant" submits a fraudulent SA simply claiming things you are not entitled to and you get a refund.  When your tax comes up for review HMRC notice this and take the refund back and maybe prosecute for tax fraud as "you" submitted the fraudulent SA.  "Accountant" walks away with £350 for half an hours work.

So better not to try.. Will see what happens to my friend. When do you think they would normally notice this? In April?

No, better to ask a local/reputable, qualified accountant rather than a random internet one you've never heard of before.  A very quick chat and them looking at your payslips/P60 should establish whether you have a genuine refund claim and explain why.

MalMonroe

HMRC self assessment is usually for those people who are self-employed. Which neither you nor your friend are. 

And if any tax refunds are necessary then you - or anyone else in the UK for that matter - can do it via your own personal HMRC account web page. Free of charge.

All you have to do is send a message to HMRC. I've done it three times in the last three years and received the refund without any fuss, directly into my bank account.

This is the link you need - https://www.gov.uk/log-in-register-hmrc-online-services/register

You can check your own tax account, ensure your tax codes are correct and request refunds. Also enquire about anything you think is wrong. Doesn't cost £350. Costs nothing.

Grumpy_chap

Alex9384 said:

About a month ago, my friend asked to borrow £350 from me because he needed "to pay an accountant for tax refund she did for him".
he received around 3K. The payment info is "HMRC self assessment" in his banking app.

We both work for the same company and we are on a relatively low income, though he earns a bit more than me, 

Gross annual income around 23.000

Income tax on a gross income of £23k per year is about £2k per year.
How plausible is it that there was an error in income tax paid of £3k?  Even if that accumulated over several years.

Edi81

Alex9384 said:

Edi81 said:

There is nothing that makes me think you are due any refunds. 

Thanks mate. Btw, are you an accountant yourself? Or just well versed in these things?

I actually am but corporate rather than personal. 

If you are paye and not a higher rate taxpayer or over £50k for child benefit it is very unlikely that your tax calculation is incorrect. 

As others have said you can check via your online tax account - no need to pay any money upfront.