Tax Rebate Adverts

Some of the adverts I have seen in national newspapers give an impression that these CIS tax rebates can be obtained from HMRC in as little as 24 or 48 hours and some state 3-7 days. How is this possible? Some of them even claim to provide cash while you wait.

From my experience you need at least 7 days to get authorized if applied online (if everything goes well with the tax office and client sends you the code promptly). Thereafter you file the return, it will take another minimum of 1-2 weeks before you get the refund, assuming it is a straightforward case & the tax office does not hold it for a security check. Therefore the whole process would normally take a minimum of 2-3 weeks. I am just curious how they manage to achieve this in such a short time?

Assuming these instant rebates are paid in the form of loans/advances against the final tax refund, would they not be considered engaging in consumer credit and lending activities and should therefore obtain appropriate licences etc? Also assuming they are members of professional bodies would they not be monitored by these bodies?

It would be interesting to learn more about this as I am getting a bit peeved with losing clients just because they are desperate for instant cash & I can’t give them. When I say I will take my fee from the refund, they don’t want to know.

Comments
johnjenkins's picture

CIS Refunds

johnjenkins | | Permalink

Your quite right it does normally take that long.

We have, with an established client, had a rebate through within 3 days of the Tax Return being submitted, but that is rare.

So how do they do it or is the wording of the advert somewhat hazy???????????

eve2206's picture

quick refunds

eve2206 | | Permalink

I've heard of one firm in North London doing this.  The builders queue up round the block (last one was in April).  They take in all their payslips and the firm do a quick calc and give them their tax rebate on the spot (in cash) but deduct a 30% fee.  Some of the builders have to leave their paperwork and come back after a couple of days.

I gather the firm are taking a risk on some of the refunds given, but the 30% fee probably covers it if you average out the gains/losses.  Who knows?

Eve

Just a way to get people through the door

mark589 | | Permalink

Sounds misleading.

Sounds like they hope that by stating unrealistic claims they will get loads of people coming to them and hope that when the people find out they have to wait an extra week or two they will think we may as well stick where we are.

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