HMRC shuts down repayment agent
HMRC has previously announced an increase in protective measures for individuals dealing with so-called “repayment agents”. Now, one such agent has been ordered to cease trading. What’s the full story, and what do you need to do if you have a claim in progress?
Repayment agent ads have become a common sight in recent years, particularly on social media. You’ll recognise them by their style, usually along the lines of “Do you wear a uniform to work? You could be owed £1,000s from HMRC…” or similar. While many such agents are genuine, the industry has come in for criticism due to practices that are, at best, questionable, e.g. requiring refunds to be made directly to the agent’s account.
More seriously, HMRC is concerned that some of these “firms” are really just a front for money laundering. All tax agents (and other professionals, including accountants and solicitors) must comply with anti-money laundering regulations, including being registered with a supervisory authority. HMRC has found one agent, Tax Credits Limited, to have seriously breached these requirements and ordered the company to cease trading as a repayment agent. It's estimated that around 11,000 individuals had commenced refund claims via the company. HMRC will now write to these individuals to update them. The refunds will be automatically made by HMRC, so you don’t need to do anything if you are one of those affected.
Related Topics
-
Capital gains tax break for job-related accommodation
You’re in the process of selling a property that you bought as your home but because of your job have never lived in. You’ve been told that you’ll have to pay tax on any gain you make, but might a special relief get you off the hook?
-
Should you revoke your 20-year-old option?
Your business has let out a building to a tenant and it is now just over 20 years since you opted to tax the property with HMRC. Should you revoke it so that your tenant no longer needs to pay VAT?
-
Chip shop owner fined £40k for hiring illegal worker
A Surrey fish and chip shop owner has been left in shock after being fined £40,000 for allegedly employing someone who didn’t have the right to work in the UK, even though he conducted a right to work check. Where did this employer go wrong and what can you learn from it?