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HMRC sending refund to "Tax Credits Limited"

Has anyone come across HMRC sending cheque refunds to "Tax Credits Limited"

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The elderly mother of a client has recently received a tax calculation from HMRC saying she has paid £15 too much tax in 2017/18 and they will send a cheque to "Tax Credits Limited".

Has anyone come across this before? The tax calc looks kosher, but why dont they just send a cheque direct to her?

How does she get her £15 back? 




Replies (8)

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By SteveHa
15th Jul 2021 14:47

Nor would I, and if you look at the PSCs history (not the director) there are several now dissolved companies doing similar in there. What's betting he hives of "client" moneys and then liquidates.

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By gillybean04
15th Jul 2021 14:55

Client will have signed a deed of assignment. The effect of this is that the repayment is legally due and payable to the third party, not to the client.

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Replying to gillybean04:
Tony s
By Tony S
15th Jul 2021 15:52

!!! wow, that's a bit s**t...

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Replying to Tony S:
By lionofludesch
16th Jul 2021 00:04

Tony S wrote:

!!! wow, that's a bit s**t...

Sounds like your client has been suckered.

Make sure it doesn't happen again.

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By Matrix
15th Jul 2021 18:52

I think it was another company but a client had added a similar firm to receive tax repayments. I was still on as agent. HMRC said the client had authorised it, they read out the letter.

So find out if this has happened or call HMRC with her if they want you to help.

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By Hugo Fair
15th Jul 2021 21:04

My big red flag is "received a tax calculation from HMRC saying she has paid £15 too much tax in 2017/18."

There are extremely limited circumstances in which HMRC will open a 4 year-old tax year - especially for what sounds like a fairly basic taxpayer - and even fewer where, without earlier communications (aka requests for further info and/or confirmation of figures), this results in them writing to the taxpayer with a changed/final figure.

Thank goodness it's only £15 at stake (if that's true), but it would seem that either your client (possibly unaware of the implications) gave this 3rd-party some type of authorisation, OR the 3rd-party is acting entirely fraudulently (a typical scam is to hook the target with a small payment and then claim a much larger sum is available "if you just ...")!

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By hbelton
16th Jul 2021 10:55

They almost certainly will have signed an agreement that directs HMRC to make all tax refunds due to the client to the company. Note that this agreement will continue even if the client doesn't use them to make any future claim.
The client needs to send a letter to HMRC cancelling any such agreement so they don't get their hands on any future refunds.

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