HM Revenue and Customs (HMRC) has announced major changes affecting taxpayers who use a repayment agent to protect them from 'unscrupulous tactics'. A new legislation will change the way these taxpayers can receive overpaid tax, aiming to protect them and raise standards among repayment agents.
HMRC will introduce legislation to change the way repayment agents are paid for their services and better protect customers from the tactics used by some operators, the government department announced. This means stopping the use of legally binding ‘assignments’ as part of claiming an Income Tax repayment, which could only be cancelled if the agent and taxpayer both agreed to do so.
The government body said this can be challenging for customers who become dissatisfied with their agent, or who simply wish to take over managing their own claim. But under new arrangements, if a taxpayer chooses to use a repayment agent to reclaim overpaid tax and wants it sent to the agent, they will need to make a nomination, which they can cancel at any time.
