Thousands of people across the UK could receive a tax refund from HMRC in the next few weeks, according to MoneySavingExpert.com.
It comes after the consumer site revealed that hundreds of people complained about being duped by Tax Credits Ltd (TCL) which led to the agency being banned from operating. Last year, HMRC pledged to refund 60,000 people who had been caught up in the agency's dodgy operation.
It was revealed that TCL charged taxpayers a significant amount of money to make claims for tax refunds on their behalf but did not show or sign any legal documentation which made it clear claims would be paid to the company. According to the government, around 11,000 clients whose claims had been paused during the investigation into TCL will now receive their tax refunds directly from HMRC instead.
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Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: "TCL have ignored their responsibilities under the anti-money laundering measures designed to protect us all from financial crime. We will not allow a small number of bad actors to tarnish the reputation of the whole tax agent sector.
"It is crucial taxpayers understand the entitlements they can claim directly from HMRC and are properly protected from the misleading tactics used by some repayment agents. The greater protections we’re bringing in will help to stop people unwittingly losing their hard-earned money to misleading agents."
MoneySavingExpert highlighted that those affected will be contacted by HMRC by the end of March, with refunds being made automatically. Fortunately, this means claimants won't have to do anything to get their money back.
HMRC is also warning taxpayers to carefully consider their options when making a tax claim and appointing a tax adviser on their behalf. It also notes that the taxpayers themselves are ultimately responsible for their own tax affairs, not the tax agent.
If you believe you're owed a tax rebate, then you can make a claim directly with HMRC.
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