30 Sep 2022
An investigation carried out by investment service Moneybox has found that HMRC has received thousands of complaints from individuals in regard to companies claiming tax repayments on their behalf.
Most individuals said that this has happened without their permission. Their complaints relate to deeds of assignment, whereby a person signs over their right to funds to someone else to claim on their behalf.
According to the investigation, HMRC has received 1,808 complaints so far in 2022. HMRC stated that it acknowledges that there are significant concerns over fraudulent repayment agents and is considering how it can tackle the issue.
Earlier this year, HMRC launched a consultation into how taxpayers can be better protected. It said that it is currently analysing the responses and 'considering its next steps'.
Commenting on the matter, Joanne Walker, Technical Officer at the Low Incomes Tax Reform Group (LITRG), said: 'People might fill in one of these inquiry forms . . . and there may be a tick box on there. Inadvertently, if they tick that box, that might involve signing up to various terms and conditions and in itself will lead to the generation of an application and a deed of assignment, even though the taxpayer thinks all they have done is make an inquiry.
'We've asked HMRC to stop accepting the deeds at face value because some of them may have been generated fraudulently.'