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<p>Individuals can claim tax repayments from HMRC and HMRC will refund them directly.
However, HMRC will issue a tax repayment to a third party when a taxpayer has either
nominated or assigned the repayment to them.</p><p> </p><p>Companies which specialize
in claiming tax refunds often use assignments as part of the sign-up process, which
means the repayment then legally belongs to that agent. When a taxpayer signs an assignment,
HMRC is obliged to make payment directly to the repayment agent. Repayment agents
may deduct a fee from the repayment before they forward the repayment to their client.
This will be set out in their terms and conditions.</p><p>When a customer has used
a repayment agent and has an assignment in place, HMRC completes essential checks
to satisfy that the assignment is valid. HMRC takes firm action against any agent
who does not comply with the law.</p><p> </p><p>HMRC launched the “<a href="https://www.gov.uk/government/consultations/raising-standards-in-tax-advice-protecting-customers-claiming-tax-repayments"
target="_blank">Raising standards in tax advice: protecting customers claiming tax
repayments” </a>consultation on 22 June 2022. The consultation sought views on restricting
the use of assignments for tax repayments, and introducing measures designed to ensure
taxpayers see material information about a repayment agent’s service before entering
into a contractual agreement.</p><p> </p><p>The consultation ran for 12 weeks and
closed on 14 September 2022. We will publish a summary of responses in due course.</p><p>
</p><p>The Autumn Statement announced changes to Research & Development relief
from 1 April 2023, reducing the risk of abuse. The new requirement for claimants to
provide additional information with their claim includes providing details of any
agent involved with the claim.</p><p> </p><p>HMRC does not comment on identifiable
businesses due to strict confidentiality rules.</p>
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