I was looking at tommys tax and wondering how this and similar companies can be legit and if not how it isn't being clamped down on?
Is it too small fry for hmrc?
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Replies (21)
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Having a UTR means you pay less tax and your refund comes through quicker. What’s not to love?
HMRC reckon to read these Q&As they should take a look at Tommys. If they care at all that is.
Hi there!
I'm afraid that's not quite right.
If a CIS client is not registered or cannot be verified, - and therefore is not eligible for a CIS refund - they get charged 30% tax rather than the standard rate of 20% on all income.
Your refund does indeed come quicker due to the registration process with Tommy's Tax. HMRC just needs a UTR number to complete your tax return, as it is used to identify you and your business. Note that, just like your National Insurance number, your UTR number stays with you all your life.
Love the calculator...
£600 day rate CIS = Refund of £120
£500,000 salary x 4 years = Refund of £40K!
I don't have subbies on a £600 day rate, nor do I have employees on a salary of £0.5M, but if I did, I'd never be 'guaranteeing' they'd get a refund!
I personally know people who have used it to get a big refund, they told the people they work with and it spreads like wild fire.
We all know how it works, I downloaded the app to test it to be sure. You answer some very basic questions and frankly it’s misleading, you claim deductions for things you shouldn’t. They get there money and if there is any come back from HMRC you’ll be on your own.
They have 1000s of good reviews which does surprise me. I guess HMRC don’t look into these claims.
Over 30 million pounds of tax refunded to date
£2,800+Average Take Home Rebate
PAYE Tax Refunds
Claim a tax refund even if your Employed. We can claim a refund on travel, uniform, union fees etc. We can go back 4 years.
Our fees are added to your expenses!
Very scary!
home to work travel - claim
eating at work - claim
a picture of a nurse with a 4k refund
awards won, 5 star reviews and featured in national newspapers
30k salary under PAYE and the site states that one will get a £600 refund
At best it is misleading and open to huge amount of abuse by making it easy to claim for things that should not be claimed for, at worst it is facilitating tax fraud, I cannot see how else you could interpret it
Check out their highly qualified staff. Looks like a bunch of kids who work in B&Q.
Their accounts are curious. Debtors of exactly £7,000in 2020 and £20,000 in 2019 and net reserves just about nil, but sizable CT bill suggests making £150k and yet one staff numbers.
Anyone would think they just made them up.....
Tax gap alert.
Do kids work in B & Q, I thought B & Q had a policy of employing the retired. (Though cant say I have visited recently, our B & Q is now a building site for over 100 flats)
Blame HMRC for poor policing of the UK tax system. It's no different to this: https://www.accountingweb.co.uk/community/industry-insights/3-rd-tax-rel...
Too many dodgy companies and accountants and not enough HMRC resources. HMRC are so poorly paid their staff cannot be bothered either looking into blatant abuse/evasion of the tax system. Who can blame them for wanting an easy life.
It's not just HMRC. Public services are now just woeful in this country. See these two stories today as typical examples:
https://www.bbc.co.uk/news/uk-61592910
https://www.bbc.co.uk/news/health-61576787
There's also active perniciousness from quasi-public services per this other story from today: https://www.lawgazette.co.uk/news-focus/news-focus-a-subpostmasters-test...
'Justin, its the old story. Defund, defund and defund.
The service fails. Then use and an excuse to privatise the service and make it worse.
Wife spent 4 hours trying to get a routine GP appointment last week. Had to call up on the morning each time and surgery wouldn't book it for later in the week. 5 days in a row she called up before finally getting on the Friday.
Agreed. I think the Tories only stay in power coz the other parties are perceived as being even worse i.e. there are no proper good reasons to vote Tory.
A further example story today is here: https://www.lawsociety.org.uk/topics/legal-aid/responding-to-the-crimina...
This country is basically falling apart at the seams it seems.
There are of course always enough public funds for well-stocked parties at No. 10 and MPs' expenses etc.
"Professional Conduct in Relation to Taxation (PCRT) Helpsheet A advises agents against using personal login credentials, but caveats that it may be acceptable in exceptional circumstances."
https://www.icaew.com/insights/tax-news/2022/May-2022/HMRC-advises-again...
In other words, if you're an unregulated cowboy it's all totally fine.
Which is obvious just from the tone ... HMRC never simply "advises" you not to do something, they adjure you to avoid the action (using clumsy language to hint that it is mandatory to comply).
But is it not ICAEW advice to their own members (my point about regulated cowboys) rather than HMRC advice, or have I misread?
Well, yes and no!
It IS advice being promoted by ICAEW to its member ... BUT written/issued by HMRC as part of their revised terms and conditions for anyone using its online services.
And these include:
"* Make clear that individual taxpayers should never share their personal sign in credentials with anyone, including their agent.
* Clarify that agents should not ask for, or use, their clients’ personal sign in credentials."
[Hence my comment regarding their reliance on weasel words like "should" - which I guess is the open door to which Justin alludes re their toothlessness!]
Possibly worth resurrecting this thread now that seemingly Tommy's is being heavily investigated by HMRC and numerous customers past & present are being landed with large bills....what goes around comes around as they say.
