HMRC Takes Action On Tax Repayment Agents

08 - 01 - 2024

HMRC has taken further steps to protect taxpayers that use repayment agents.

There have been significant issues with unscrupulous companies trying to reclaim tax repayments for individuals.
HMRC reports high volumes of claims for repayment of tax deducted from interest on PPI claims. In many cases claims are made for taxpayers who have never received interest on PPI claims. In the worst cases the individual is not even aware the claim has been made and/or the funds are retained by the company claiming, even where the claim is spurious. 

HMRC temporarily suspended the processing of all R40 (PPI) claims on 26 October 2023. To try and tackle unscrupulous activity from some “repayment agents” HMRC have now introduced the following:

1. Supplementary evidence will be required with the R40 Form. For reclaims of taxed  interest on PPI HMRC will require:
 the final response letter from the company that made the PPI payment to the taxpayer; or 
a certificate from the company that refunded the taxpayer to confirm the amount of tax deducted.  

2. Assignment of the rights to R&D tax credit repayments will be prohibited with no new assignments accepted from 22.11.2023

3. Working with the Advertising Standards Authority to stop the advertising of these reclaims.

Whilst there are many legitimate tax repayment agents available, taxpayers should be wary of any agent that:
Receives the reclaim on your behalf
Does not request specific figures, information or evidence to substantiate your claim
Does not provide you with details of the information to be submitted on your behalf.  

If you are concerned we urge you to seek professional advice. As a professional accountancy practice, Foremans can assist you with a legitimate tax reclaim. We do not accept tax repayments on behalf of clients and will always ensure that claims are paid direct to clients.

Whilst all due care and attention has been taken in the preparation of these notes not liability can be accepted for any omission or item contained therein. 






Foremans LLP Umberlla
Foremans LLP