Why has HMRC started using tax return limited?

pinksusie

Recent got a message from HMRC saying they owed me £194.27 and they had sent the cheque to Tax return limited. So contacted Tax return limited to request my money and the have charged me £125.28 for the privilege of giving me my own money. 

!!!!!! what sort of a scam is this? How do I get the rest of my money. I work bloody hard for every penny I earn, and it is bad enough HMRC taken too much tax to begin with without losing my hard earned cash to some tax agency scammers. Why could HMRC spend me the money directly like they previously have?

Dazed_and_C0nfused

pinksusie said:

Recent got a message from HMRC saying they owed me £194.27 and they had sent the cheque to Tax return limited. So contacted Tax return limited to request my money and the have charged me £125.28 for the privilege of giving me my own money. 

!!!!!! what sort of a scam is this? How do I get the rest of my money. I work bloody hard for every penny I earn, and it is bad enough HMRC taken too much tax to begin with without losing my hard earned cash to some tax agency scammers. Why could HMRC spend me the money directly like they previously have?

Isn't the question here why did you sign up with them?

Sarahspangles

pinksusie said:

Recent got a message from HMRC saying they owed me £194.27 and they had sent the cheque to Tax return limited. So contacted Tax return limited to request my money and the have charged me £125.28 for the privilege of giving me my own money. 

!!!!!! what sort of a scam is this? How do I get the rest of my money. I work bloody hard for every penny I earn, and it is bad enough HMRC taken too much tax to begin with without losing my hard earned cash to some tax agency scammers. Why could HMRC spend me the money directly like they previously have?

Have you previously signed up to have your tax reviewed, and any rebates claimed? The small print of the agreement often allows these companies to claim you have retained them for future years.

HMRC don't use them and in fact are cracking down on this kind of company by requiring them to prove that clients have re-signed up every year.

Ayr_Rage

You must have somehow signed up to their services, it doesn't just happen out of the blue.

Nomunnofun1

Quite a few similar tales very recently.

https://uk.trustpilot.com/review/getyourtaxreturned.co.uk

etienneg

Why don't we just require (by law) HMRC to pay ALL tax refunds directly to the taxpayer?

Caz3121

pinksusie said:

Recent got a message from HMRC saying they owed me £194.27 and they had sent the cheque to Tax return limited. So contacted Tax return limited to request my money and the have charged me £125.28 for the privilege of giving me my own money. 

!!!!!! what sort of a scam is this? How do I get the rest of my money. I work bloody hard for every penny I earn, and it is bad enough HMRC taken too much tax to begin with without losing my hard earned cash to some tax agency scammers. Why could HMRC spend me the money directly like they previously have?

can you recall when you first engaged them to act on your behalf? looks like they take a fee of £50 + 28% + VAT
on £194.27 that would equate to your figure.
Guess you need to read the original documentation to see how long they will be your representative or if you can end the arrangement and claim yourself in future.

Nomunnofun1

etienneg said:

Why don't we just require (by law) HMRC to pay ALL tax refunds directly to the taxpayer?

Because HMRC are obliged, by law, to act upon a signed authorisation to send the refund elsewhere. 

Without that it is automatically sent to the taxpayer. 

Many accountants use this option to ensure that they are paid their fees, most commonly in the case of those entitled to repayment of SC60 tax. It has not been unknown for the taxpayer to retain the refund and not pay their accountant!

Dazed_and_C0nfused

Nomunnofun1 said:

etienneg said:

Why don't we just require (by law) HMRC to pay ALL tax refunds directly to the taxpayer?

Because HMRC are obliged, by law, to act upon a signed authorisation to send the refund elsewhere. 

Without that it is automatically sent to the taxpayer. 

Many accountants use this option to ensure that they are paid their fees, most commonly in the case of those entitled to repayment of SC60 tax. It has not been unknown for the taxpayer to retain the refund and not pay their accountant!

That's a blast from the past!!

etienneg

Nomunnofun1 said:

etienneg said:

Why don't we just require (by law) HMRC to pay ALL tax refunds directly to the taxpayer?

Because HMRC are obliged, by law, to act upon a signed authorisation to send the refund elsewhere. 

Without that it is automatically sent to the taxpayer. 

Many accountants use this option to ensure that they are paid their fees, most commonly in the case of those entitled to repayment of SC60 tax. It has not been unknown for the taxpayer to retain the refund and not pay their accountant!

Of course, I realise the CURRENT legal position. I'm not criticising HMRC for its current method of dealing with this. What I'm suggesting is a simple change to the law, removing HMRC's obligation to follow "signed authorisation" and substituting an obligation ALWAYS to refund direct to the taxpayer.

Genuine accountants have the law on their side already. If necessary they can recover unpaid fees through the courts. Alternatively, they could require payment of fees before submitting the tax return, as conveyancing solicitors do in advance of exchanging contracts.

sheramber

etienneg said:

Nomunnofun1 said:

etienneg said:

Why don't we just require (by law) HMRC to pay ALL tax refunds directly to the taxpayer?

Because HMRC are obliged, by law, to act upon a signed authorisation to send the refund elsewhere. 

Without that it is automatically sent to the taxpayer. 

Many accountants use this option to ensure that they are paid their fees, most commonly in the case of those entitled to repayment of SC60 tax. It has not been unknown for the taxpayer to retain the refund and not pay their accountant!

Of course, I realise the CURRENT legal position. I'm not criticising HMRC for its current method of dealing with this. What I'm suggesting is a simple change to the law, removing HMRC's obligation to follow "signed authorisation" and substituting an obligation ALWAYS to refund direct to the taxpayer.

Genuine accountants have the law on their side already. If necessary they can recover unpaid fees through the courts. Alternatively, they could require payment of fees before submitting the tax return, as conveyancing solicitors do in advance of exchanging contracts.

Talk to your MP.