Monday 10 October 2022

The Dangers of Deeds of Assignment

 

The number of people complaining to HMRC about companies claiming tax repayments on their behalf has more than tripled in two years, a Money Box investigation has discovered.

Many say this is happening without their knowledge or permission.

HMRC admits there are significant concerns about repayment agents and is "considering its next steps".

The complaints are about what are called "deeds of assignment".

There have been 1,808 complaints so far this year, compared with 545 in the whole of 2020.

A deed of assignment is when a person signs over their right to something, usually money related, to someone else to claim on their behalf.

When used properly, by legitimate tax repayment companies, they can help people get money they probably wouldn't otherwise manage to claim for.

The market is unregulated and open to abuse.

John Strawbridge is retired and two months ago he received three letters from HMRC.

The letters explained the £974 of marriage allowance John had claimed for would be paid, as requested, to a tax repayment company.

The problem was John had never heard of the company involved, had never claimed the money and, two months on, has still not seen a penny of it.

He is quoted by the BBC:

"It was a great shock.

I'm always very careful to fill in all my income tax and any other form and keep copies so... I spoke to my wife and said 'what on earth's going on, we haven't done anything about this. We'd better find out what's going on.'"

The danger comes from adverts on social media which ask people if they would like to check if they are eligible for refunds etc. Within these forms is a box which people are invited to tick allowing the company to claim on your behalf.

Tax does have to be taxing.

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3 comments:

  1. No comment...

    https://www.independent.co.uk/news/uk/home-news/hmrc-worker-wins-payout-nye-row-b2201779.html

    ReplyDelete
  2. https://www.express.co.uk/celebrity-news/1676104/eamonn-holmes-slams-HMRC-tax-evil-health-shingles-hospital-operation-latest

    ReplyDelete
  3. The department received another scathingly brutal assessment of its performance in The Times today. I quote..

    "The Times found that tax office staff took ten months to complete basic tasks that meant to take 15 days".

    Not very good is it. Long gone are the days of Over and Under 15 day post counts. The departmental retort was that 'Customer satisfaction was consistently around 80 percent, but some of our services are not where they want to be and we are sorry.'

    HMRC has been saying sorry a lot for the last twenty years.

    A surprising statistics quoted staff costs have increased 37 per cent since 2019.

    I don't know if that figure includes redundancy payments or unfilled managerial non jobs.

    ReplyDelete