Fasttrack PPI Claiming 36% for a Self Assessment Tax Rebate : Help!

merlynhs

About three years ago I signed up to Fastrack Reclaim to reclaim some PPI.  They recovered around £1,500 for me but took a commission of 36%, which is as per the script they pitched me.

Fast forward to 2023 and following the submission of my annual self assessment I am due a tax rebate of £3,700.  Fasttrack have stepped in to say that under the Terms & Conditions of their contract which we signed up to they are due 36% of this rebate.  It is nothing to do with them and hasn't involved them in the slightest.  Their explanation is that in signing their T&C's I have delegated HMRC tax authority to them and under these T&C's all rebates, irrespective of their non involvement has a 36% commission fee to them.  

This cannot be right and has got to be a case of mis-selling and deception.  Any advice on how to proceed with this as they are threatening legal proceedings if it is not paid.

Thanks

la531983

You need to go back and look at what you signed and agreed to. 

merlynhs

la531983 said:

You need to go back and look at what you signed and agreed to. 

Just checked what it was that was signed up to.  An R40 which was a "Claim for repayment of tax deducted from savings and investments" and a Letter of Authority giving them authority on the reclaim of tax and interest on and savings associated. 

The rebate was for overpayment for of PAYE which is not mentioned anywhere in the paperwork.  Their covering email states:

Thank you for choosing Fast Track Reclaim in collaboration with Fast Track Solicitors to assist you with the following services:

1. A PPI Tax refund.
2. An additional refund if it is determined that your PPI payout was underpaid. 

Dazed_and_C0nfused

An R40 is not something that can be used by someone who has (or will) complete a Self Assessment return for the same tax year.

It's one or the other and Self Assessment will always trump the need for an R40.

Has an R40 been submitted to HMRC for the same tax year as a Self Assessment?

If not a key factor will be exactly what you authorised.  If it was relatively recent it's not impossible that it could have included the current tax year 😳

merlynhs

Dazed_and_C0nfused said:

An R40 is not something that can be used by someone who has (or will) complete a Self Assessment return for the same tax year.

It's one or the other and Self Assessment will always trump the need for an R40.

Has an R40 been submitted to HMRC for the same tax year as a Self Assessment?

If not a key factor will be exactly what you authorised.  If it was relatively recent it's not impossible that it could have included the current tax year 😳

The R40 was signed in 2021 as was the Letter of Authority.  The tax return that the rebate was for was ending 5th April 2023.  To be honest as the R40 was signed in relation to a PPI claim, I gave it no consideration that it would come into play for tax related to Self Assessment return.

Fastrack PPI claim is that the LOA and R40 signed in 2021 combined with their T&C's automatically gives them a 36% claim on the tax rebated generated from the self assessment return.  This is surely deception as everything in the covering documentation and emails references PPI.

merlynhs

merlynhs said:

Dazed_and_C0nfused said:

An R40 is not something that can be used by someone who has (or will) complete a Self Assessment return for the same tax year.

It's one or the other and Self Assessment will always trump the need for an R40.

Has an R40 been submitted to HMRC for the same tax year as a Self Assessment?

If not a key factor will be exactly what you authorised.  If it was relatively recent it's not impossible that it could have included the current tax year 😳

The R40 was signed in 2021 as was the Letter of Authority.  The tax return that the rebate was for was ending 5th April 2023.  To be honest as the R40 was signed in relation to a PPI claim, I gave it no consideration that it would come into play for tax related to Self Assessment return.

Fastrack PPI claim is that the LOA and R40 signed in 2021 combined with their T&C's automatically gives them a 36% claim on the tax rebated generated from the self assessment return.  This is surely deception as everything in the covering documentation and emails references PPI.

The content of their Letter of Authority dated and signed by me on 8th April 2021 is as shown below.  HMRC paid the self assessment refund to me directly via cheque.  They must have informed Fast Track and they are now chasing a 36% cut based on this LOA and R40.  They did not submit the self assessment and in actual fact I have heard nothing from them at all since the submission of these forms in April 2021 until I received an email this afternoon, which I at first thought was spam!

1. Authority

I hereby authorise Quickly Finance Ltd (CRM23552), (T/A Fast Track Reclaim), to act as my

representative for dealing with affairs regarding the reclaim of tax on interest and savings

associated with HMRC.

2. Subject Access Request

I authorise Fast Track Reclaim to make a subject access request on my behalf. I understand that

this will mean you may share details relating to my personal income, tax and related matters, as

pertains to the above services they are providing. I do not wish to be contacted by HMRC in relation

to any subject access request made by Fast Track Reclaim in any way and you should direct all

correspondence and enquiries to Fast Track Reclaim.

3. R40 Tax Claim

I authorise Fast Track Reclaim to carry out and submit an R40 Tax Reclaim on my behalf. I instruct

HMRC to pay any refund directly to Fast Track Reclaims client account. Details of which, they will

provide.

Dazed_and_C0nfused

You haven't actually said but presumably the R40 was for a year you didn't need to complete a Self Assessment return?

Anyway you might find this article an interesting read.

https://www.litrg.org.uk/tax-guides/tax-basics/how-do-i-claim-tax-back/should-i-use-tax-refund-company#toc-pre-15-march-2023-what-is-the-effect-of-signing-a-deed-or-letter-of-assignment-

To be honest I didn't think a deed of assignment could include a future tax year however I might be out of touch there.

Maybe the starting point is to ask HMRC which tax years the deed of assignment covers?

merlynhs

Dazed_and_C0nfused said:

You haven't actually said but presumably the R40 was for a year you didn't need to complete a Self Assessment return?

Anyway you might find this article an interesting read.

To be honest I didn't think a deed of assignment could include a future tax year however I might be out of touch there.

Maybe the starting point is to ask HMRC which tax years the deed of assignment covers?

Thanks for the response.  Yes, the R40 was for a year when no self assessment return was needed.  First time doing a self assessment was this year.

Dazed_and_C0nfused

One other thing, presumably once the refund due on the (PPI related) statutory interest was resolved you didn't bother asking HMRC to remove this company as your appointed agent/accountant.  And that will be how they are now aware of this £3,700 refund.

You might want to consider if you should be informing HMRC that this company are no longer acting on your behalf and then HMRC won't be able to send any further information to them.

That doesn't however alter the position regarding a valid deed of assignment.  If one exists.