Last year HMRC informed me that I have been awarded a £1,617.60 tax refund. However, the money has been paid to a company called Tax Returned Ltd which, unbeknownst to me, has become my agent. I’ve tried to contact it by phone, but it never answers, and there’s been no reply to my email or letter. HMRC insists it requires a letter of authorisation from Tax Returned before it can remove it from my account and put me back in charge of my own tax affairs.
OF, Padiham, Lancashire
You’ve tumbled into a sinister corner of the tax world in which companies you may never have heard of can signed you up, without you realising, to a deed that entitles it to receive all your refunds of overpaid tax for up to four years – whether or not it was they, or you, who submitted the claim. Worse, you can’t get rid of it unless it gives HMRC written permission to remove it as your representative. And why would it when it can pocket up to 50% of your rebate in fees? In your case, you haven’t yet seen a penny of the payment.
Tax Returned is a familiar name. I wrote about it last year after it pocketed half the rebate due to another reader. It has tweaked its website since, and a banner on the homepage explains its fees which are eye-watering – 28% plus VAT of any refund and an extra £50 plus VAT. If you ever get your money, nearly £450 will have been deducted for a claim you can make for free yourself. Its communications haven’t improved, however. Whatever time you ring, a recorded message states it is too busy to take calls and my email, like yours, went unanswered.
You say you don’t know how you came to be signed up and it is not inclined to explain. HMRC tells me it can’t comment on individual companies and that customers with concerns must take it up with the company itself, or report a suspected scam to Action Fraud. HMRC is only interested in investigating if a firm makes an invalid claim for a rebate a customer is not entitled to.
The good news is the rules have changed. Deeds of assignment signed since March are no longer legally binding, and repayments remain the property of the taxpayer, while claims agents now have to register with HMRC. But since agents are unregulated, and can be set up by anyone from a front room, registration is no proof of probity.
Tax Returned’s website points to its Trustpilot score as evidence of its reputation. This is startling- 93% of reviews give it four or five stars, yet the 2% of one-star reviews tell dire tales of unsolicited contracts and unpaid rebates.
Many of the satisfied customers appear to have chosen to, or been encouraged to, submit reviews straight after filling out the online application form, before their claim has been processed. I’ve reported my concerns to Trustpilot, which is investigating. You can try your luck with Action Fraud and consider the small claims court.
Always be wary of filling in online forms, especially via pop-up ads on social media. One click of a button can sign away your money or rights.
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