Should I pay a company to see if I'm owed tax refund?

Puddin'

Am a member of teaching union and have got a form through post saying that I can use a company called tax buddies to see if I'm owed any tax back.
They take a 40% cut of anything that I get back but if I owe tax Mr Tax man doesn't find out. I could go direct but not really sure of how to go about it plus chance that I could end up owing.

Does anyone have any advice or experience of this?

Feedback appreciated.

Edinburghlass_2

No, no, no!!

The search is down for the w/end or I'd search the board regarding this but first of all does it say how much they charge if they find you aren't owed any tax back. It will be in the small print somewhere.

terryw

Puddin' wrote: »

Am a member of teaching union and have got a form through post saying that I can use a company called tax buddies to see if I'm owed any tax back.
They take a 40% cut of anything that I get back but if I owe tax Mr Tax man doesn't find out. I could go direct but not really sure of how to go about it plus chance that I could end up owing.

Does anyone have any advice or experience of this?

Feedback appreciated.

Puddin', is there any reason why you think that you might be owed tax? For most people in employment, you have a code number and that's it! As an employed person there is very little that you can claim against tax. Your tax affairs are likely to be very straightforward and it should not be difficult for you to check your tax deductions. If you find something wrong just reclaim it yourself.....it is a bit daft to pay someone forty per cent.

There might be sense in using a form like this if your affairs are complicated...e.g.working abroad, self-employed at times, but for most people there is no advantage.

Puddin'

Edinburghlass wrote: »

No, no, no!!

The search is down for the w/end or I'd search the board regarding this but first of all does it say how much they charge if they find you aren't owed any tax back. It will be in the small print somewhere.

Says that I won't get charged if no refund due.

Browntoa

this was one, applicable to students

http://forums.moneysavingexpert.com/showthread.html?t=372226

Browntoa

another if you earn under £5000 , which is the same as above more or less

http://forums.moneysavingexpert.com/showthread.html?p=8300891

Browntoa

an this seems to be the answer from this thread

http://forums.moneysavingexpert.com/showthread.html?t=350173

quote:-

A friend of mine who works at the revenue was helping me fill out my tax return last night. She asked me whether or not I had asked the inland revenue whether I was due any refunds for income tax over the last 6 years.

When I replied 'no' she said she would check when she went into work today. Apparently I am owed £488 from the tax year 02/03 in overpaid income tax! It suddenly dawned on me that there had been a mix up during that year and I had assumed that the revenue automatically corrected their mistakes. I am told otherwise, you need to ask them to check!

She went on to say there are plenty of companies out there that will claim this money back and take a cut of between 10 - 70% of the refund.

But, as I found out, it is simply a matter of contacting you tax office and asking them to check.

More details are here: http://www.direct.gov.uk/MoneyTaxAnd...075&chk=4gMY4J

BrianM1975

Never go to a company who charges a proportion of the tax you get back.

If your affairs are simple talk to the tax office direct. they are more helpful than you might think.

If you have complicated affairs appoint an accountant or tax adviser.

fengirl_2

Can I endorse what others are saying. If you are under PAYE, your affairs are straightforward - these tax reclaim companies are a rip-off and very annoying to HMRC staff!
As a teacher, you should be claiming for your union and professional subs and, unless you buy your own books for teaching above GCSE, then there is v little you are likely to be able to claim. A simple call to HMRC will enable them to look at your code numbers for the past 6 years and be able to tell you what expenses were included in them.

chappers

This sounds a bit like the usual self employed tax rebate scam you see in the papers etc.
Gauranteed tax rebate if your self employed. yep sure they get you a rebate because when you submit your return they take you at your word and send you a nice fat cheque, two years down the road when you get investigated you find out company x has falsified your return and HMRC want the tax back and surprise surprise company x has shut down and is now operating as company z

CannyJock

I paid an accountant to do my self assessment tax return as a company director. Wasn't until I went self employed and refreshed myself on tax deductible allowances that I realised they hadn't asked half the right questions.

I wrote a detailed letter to HMRC, couple of letters back and forward confirming points of detail, nothing scary, and I was able to claim back for 6 years of unclaimed expenses incurred for business purposes, got thousands back.

So even the official channels don't always get you value for money (maybe I just had bad luck). Definitely worth reading up on this site and asking questions and doing it yourself.