HM Revenue and Customs (HMRC) has announced changes to the way people can use a repayment agent to claim tax refunds to provide greater protection for taxpayers. HMRC said that businesses specialising in helping people and firms make claims for tax refunds often advertise on social media and tend to operate on a commission-based fee structure.
The revenue body said many repayment agents support customers to access tax relief or repayments they may otherwise have been unaware of. But it has also frequently seen cases where repayment agents have pushed the boundaries of eligibility, exploited customers, or made fraudulent claims.
HMRC received more than 2,200 complaints about repayment agents between January 2022 and October 2022, including those relating to the use of assignments, which legally transfer the benefit of the taxpayer's repayments to the agent; taxpayers not being made aware of or fully understanding terms and conditions; and people being unaware that they are dealing with a third party and not HMRC.
