Refund companies fleece taxpayers with small print
The Low Incomes Tax Reform Group (LITRG) is concerned that many taxpayers have been hit with further fees from tax refund companies after unwittingly signing a deed of assignment that covers multiple years.
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But it will depend on what side of the borderline it is. I'm sure these opportunistic companies have constructed the agreements to keep it legal so I suspect that there is low likelihood of prosecution.
But yes, it is disgusting.
Unfortunately the world is full of similar reptiles whose business is based on being legally defensible, but morally reprehensible.
If you want an even more widespread example ... look at recurring Credit Card
payments (aka a Continuous Payment Authority), where authorisation provided by a customer permits the merchant to take payments from them by either debit or credit card - and this authorisation remains in force until the customer cancels the arrangement. Sound familiar?
Who was it who said "The first thing we do, let's kill all the lawyers?"
Could we be told more about these Deeds of Assignment? In all my experience, I have never heard of a blanket document being lodged with HMRC covering all refunds - in the rare cases where a refund has been paid to us there has been a specific authority on each occasion
A deed of assignment is a legal document, rather than a tax/hmrc one.
It is used to transfer a right (such as the right to be repaid a debt or property/land) to another.
Once assigned, the right belongs to the new person/company. Which is why the client would need their permission to have it withdrawn.
I had this with a client's daughter three/four years ago.
I drafted a letter for her to send to HMRC rescinding any authorisation for any refunds to go to anyone other than the individual herself and sent it recorded delivery and kept proof.
On the subject of tax refunds, has anyone heard of Citadel Claims Ltd, who say they can get CT back by claiming against (presumably faulty or non-existent) preparation for GDPR?
I have a client determined to use them.
On the subject of tax refunds, has anyone heard of Citadel Claims Ltd, who say they can get CT back by claiming against (presumably faulty or non-existent) preparation for GDPR?
I have a client determined to use them.
Has your client paid more than £10,000 in the last 2 years to "the HMRC"?
It stinks of scam! What does GDPR anyway have to do with tax, or was that invented?
No privacy policy or Terms on website either. Though happy to say their cut is 30%...
Your client will be dealing with a company that was struck off at Companies House over 3 years ago. And whose address is a low-cost mail-forwarding firm, Ghost Mail. Fools and their money.