Rules have changed for tax refund agencies but commission rates remain high
HMRC doesn’t look too kindly on the tax refund agencies, not least because they can charge extortionate amounts of commission and sometimes their clients are not even aware that they have signed up to their services.
In March this year they changed the rules so that assignments of income tax repayments to these agencies were now no longer applicable but this does not stop them from being ‘nominated’ by their clients, which means they can still receive the repayment but now, unlike before, the taxpayer can stop the process so that the refund goes into their account and not that of the agency.
When Langricks submit a tax return on behalf of their clients we would investigate expense claims and any other potential tax rebate as part of the service, however, although they charge lower rates than accountants, engaging with a tax refund agency could result in a commission payment of up to 50% of the refund going to the agency.
Get in touch if you would like more information about our Personal Tax service.