Shocking stories about tax rebate claims firm Mortgagesmiths have flooded in after I exposed it last week.
Victims say that the company has claimed rebates on their behalf without their permission and then takes commission of up to 48% plus an administration fee.
Rachel Parsons contacted me on behalf of her 82-year-old father John Fielding from Bolton, saying he was surprised to be told that he was getting a married couple’s tax refund.
“The refund comes to £969, but he’ll only get £430 after Mortgagesmiths take their cut,” she said.
“They say my father completed an online form but he is adamant he has not. He’s computer illiterate.
“I find it extraordinary that HMRC are not checking these mandates more closely.
"How do they know the signatures are genuine if the taxpayer has never previously submitted a self-assessment return or anything else? It's a massive security loophole.”
James Liscombe from Bedlington near Newcastle was stunned when HMRC wrote to say that his tax refund would be paid to Mortgagesmiths. “I’ve never had any contact with any company regarding claiming a tax rebate,” he said.
“Mortgagesmiths sent me a copy of the form I supposedly submitted and it is not my signature on it.
“I already have an online HMRC account so would never have enquired regarding the assistance of a company to retrieve my own rebates.”
The 30-year-old software engineer said he then had to go through a “very long and tiring” process with HMRC to have Mortgagesmiths removed from his account.
“In my opinion, HMRC are as much to blame for their negligence as Mortgagesmiths are for what they are doing,” he said.
Retired Anthony Loftus' case began when saw an ad on Facebook about marriage persons tax rebates.
"I filled in a few questions and forgot all about it until some time later my wife got a letter from HMRC saying she was due a rebate," said Anthony, from Barrowford, Lanc.
"I cannot understand why HMRC had not contacted us to see if we wanted Mortgagesmiths to act on our behalf."
Mortgagesmiths wrote to Anthony to say that it would be keeping £273 0f his £364 rebate.
John Gotts from Leeds was shocked to learn that his rebate of £145 was going to Mortgagesmiths.
“I saw the Mortgagesmiths website about working from home rebates but it’s so misleading and I could not see that by ticking the box I was giving them the right to claim any tax rebate I may be due,” he said.
“I emailed requesting that they remove themselves from my account and refund me any money received from HMRC but I’ve had no reply.”
Legal secretary Holly Wheatley used an online tax rebate calculator and thought no more of it until being told that her refund was going to Mortgagesmiths.
“I have never signed or completed any form,” she said. “Claiming a tax refund is a simple process and it does not require a company to do so on my behalf.”
"I have emailed them several times asking them to confirm they will contact HMRC to remove themselves from my records as I’m concerned they will just be able to claim again and again. They never respond to these emails."
She described as “completely unacceptable” the £11 she received from Mortagesmiths of her £60 rebate.
Ian Turner from Brough on the Humber thinks that he may have clicked on a Facebook advert to see if he could claim a tax rebate from working from home last year.
"This was an enquiry only and not giving Mortgagesmiths authorisation to act on my behalf," he said.
"The form submitted to HMRC has a signature that bears no resemblance to mine.
"Why have HMRC not taken action before now and stopped this?"
Mortgagesmiths is run from Leeds by director Nasser Mughal, 35.
“Each client signed electronically, and they are made aware that their signature is used to submit the necessary paperwork to HMRC to obtain a refund,” he insisted.
"A copy of the documents sent to HMRC are subsequently emailed to each client, so they have a copy for their records.
“The clients in question all received correspondence and emails confirming the details of our service.”
An HMRC spokesperson said: “We recognise there are significant concerns around the use of repayment agents, and are currently reviewing the processes and documentation for all repayment agents to ensure they lead to valid assignments.
“Customers should be careful when responding to online adverts, check who they are dealing with before handing over personal information, and carefully read the repayment agent’s terms and conditions to understand what they’re signing up for.
“People making claims direct to us will receive their repayments quicker and keep all of what they are due. We are currently repaying the vast majority of personal tax repayments within our 15 days target.”
HMRC guidance on choosing a tax agent can be found here.
investigate@mirror.co.uk
