Greater control for taxpayers using repayment agents
HM Revenue and Customs (HMRC) is
changing the way taxpayers who use a repayment agent can receive overpaid tax to
protect them and raise standards among repayment agents.
HMRC will introduce legislation to change the way repayment agents are paid for
their services and better protect customers from the unscrupulous tactics used
by some operators. This means stopping the use of legally binding
'assignments' as part of claiming an Income Tax repayment, which could
only be cancelled if the agent and taxpayer both agreed to do so. This can be
challenging for customers who become dissatisfied with their agent, or who
simply wish to take over managing their own claim.
Under new arrangements, if a taxpayer chooses to use a repayment agent to
reclaim overpaid tax and wants it sent to the agent, they will need to make a
nomination, which they can cancel at any time. The new process will make it
easier for taxpayers to stay in control of their repayments.
Angela MacDonald, HMRC's Deputy Chief Executive and Second Permanent Secretary,
said:- "Taxpayers deserve better. We want to make sure they are better
protected before choosing to enter into an agreement with a repayment agent.
HMRC's updated standards for agents will level the playing field and provide the
benchmark we expect all repayment agents to meet."
The changes follow HMRC's consultation last summer on:- 'Raising standards
in tax advice: Protecting customers claiming tax repayments.' Responses
to the consultation highlighted the need to improve agent transparency and
standards with the overall aim of better protection for taxpayers.
As a result, HMRC is today also setting out the following measures:-
Updated standards for agents; applicable to all tax agents and include greater
transparency requirements.
A new HMRC registration process for repayment agents; to make the agent sector
more transparent so customers better understand what they are signing up to.
Victoria Atkins, Financial Secretary to the Treasury, said:- "For too long
taxpayers have been left in the dark as a result of misleading and opaque
agreements with repayment agents. These new measures will ensure those who are
entitled to claim a tax repayment or relief can do so freely and easily, whether
they choose to do this themselves or by using an agent. This Government is
making it easier to navigate the system for all taxpayers using an agent to
claim money that's owed to them."
Victoria Todd, Head of the Low Incomes Tax Reform Group, said:- "We
welcome these additional steps, which show HMRC recognises the important role
they play in consumer protection. Refund companies have a legitimate role in the
tax system, but the practices of some of these companies in recent years have
been unacceptable. The proposed changes will hopefully address problems around
the use of assignments, increase transparency for taxpayers and set clearer
standards for these companies' behaviour. Alongside this, it is important that
more effort goes into raising awareness of refunds and ensuring it is as simple
as possible for taxpayers to access them. We look forward to working with HMRC
on the detail of the proposals."
These changes form part of the Government's commitment to tackle problems in the
repayment agent market, which is currently an unregulated sector.
Responses to HMRC's recent consultation overwhelmingly supported the need for
improving standards in the repayment agent sector. The updated HMRC standard for
agents includes:-
►
Greater evidence of customer consent. This aims to ensure that taxpayers better
understand the agreement they're entering into
►
Stricter transparency rules, including:- introducing a 14 day 'cooling
off' period for customers, after entering into an arrangement with an
agent, and an obligation on agents to ensure all communications and advertising
material are fair, clear, accurate and do not mislead or conceal material facts
►
Further details on the approach to registration for repayment agents will be set
out in due course.
►
If taxpayers think they are owed a tax rebate, they can claim directly from HMRC
via the free and secure service on GOV.UK and will receive 100% of the money
owed.
Lithium battery fire results in fatality and serious injury
MERSEYSIDE Fire and
Rescue Service (MFRS) crews were called to a serious fire, at Daisy
Mews, Litherland, in the early hours of Sunday, 8 January 2023.
Sadly, we can confirm that 1 of the residents of the property has
died and another is in a serious condition in Hospital.
MFRS crews were alerted at 3.00 am and on scene at 03.08 am. 4 fire
engines attended. On arrival at the 2 storey semi detached house,
fire crews found the ground floor fully involved in fire.
4 firefighters immediately entered the property wearing breathing
apparatus and used hose reel jets to extinguish the fire whilst also
searching for occupants.
2 occupants were located and brought out of the property by
firefighters. CPR was undertaken by fire crews and North West
Ambulance Service (NWAS) Paramedics. Tragically, 1 person was
declared deceased at the scene, the 2nd person was taken to Hospital
by NWAS in a serious condition.
A further resident who managed to escape the property and raise the
alarm after being woken by smoke alarms was also taken to Hospital
suffering from severe smoke inhalation.
A joint investigation between MFRS and Merseyside Police has
revealed that the fire was accidental and caused by an e-bike left
charging overnight. The fire had rapidly taken hold and spread
quickly through open internal doors.
Area Manager Mark Thomas said:- "This is a devastating
incident and our thoughts are very much with the family and friends
of those involved. We are also mindful of the impact that the
incident will have on the local community at this time and we will
be on hand to offer our support in the coming days. I would like
also to commend the efforts of our fire control staff who offered
help to callers, our fire crews who attempted rescues, also working
with NWAS who combined made every effort to provide emergency
resuscitation for the casualties. This tragedy highlights the very
real risks posed by e-bikes, which we have confirmed as the source
of the fire. We would ask that people don't leave any electrical
appliance, particularly e-bikes and scooters; charging unattended
and definitely not while you are asleep when we are all at our most
vulnerable. Also consider if you are leaving the bike or scooter in
the way of your escape route should you need to evacuate in
darkness. I would also urge people to follow the manufacturer's
instructions, only using batteries and chargers which have been
supplied with the vehicle or approved by the manufacturer. Make a
bedtime routine ensuring all internal doors are closed as this will
slow the progress of a fire if 1 should happen. In this incident the
resident who raised the alarm was able to do so as smoke alarms had
alerted them- please ensure you have working smoke alarms on every
level of your home and check them regularly."
Firefighters and MFRS prevention staff will visit the local area to
provide vital fire safety advice and complete home fire safety
checks as part of a reassurance campaign in the coming days.