12 Oct With tax return season fast approaching, how can you spot tax rebate sharks?
Tax return season is fast approaching and for many, this can often be considered a complicated task – which is why many rely on tax-refund firms to assist with the process. However, there are now also a rising number of unregulated firms who charge enormous fees for tax refunds – sometimes even up to 48% of the refund amount. HMRC estimates that around 500,000 people fall victim to these scams every year, which given the current cost-of-living crisis, could be extremely harmful to families who are already struggling to make ends meet.
The government’s recent mini-budget, followed by the 45pc tax cut U-turn have also prompted significant delays in tax rebates across the board, with many still waiting for their money from HMRC. With this in mind, Tommy Mcnally, leading tax expert with over a decade of experience in the industry, and founder of tax-refund app, Tommys Tax has outlined the critical differences between tax rebate sharks and legitimate firms, to not only bring awareness to Brits on the topic, but to also ease the minds of those still waiting for their payments, but are worried that they may’ve fallen victim of such scams.
You’re being bombarded by cold calls and text messages:
Tax rebate sharks will normally already have your details, and are not ashamed to continuously bombard you with text messages and calls. If you notice this, report it to HMRC as soon as possible – HMRC will never ring to threaten arrest, nor will they ask for personal information.
You’ve entered your details into a ‘free check’ service online:
Many are not aware that sometimes by doing this, you’re committing to using a firm that could result in charging you higher costs. Before you enter any of your personal details, be sure to check whether the firm is a registered HMRC agent.
You see a ‘Good News! You’ve been owed…’ pop up message:
Some firms will let customers fill out a form which is stated as 100% free and no obligation necessary – however, tax rebate sharks will often follow up with message stating that you could be owed a certain amount. By filling out this form, many people don’t realise that they are being locked into a ‘legally enforceable’ contract – with some being asked for an electronic signature. Be sure to look through the contract to see if you’re being charged extortionate amounts, including a fee if they choose to cancel later.
