HMRC's ban on rogue tax rebate firm hailed by specialists

Tax Credits Ltd, which charged taxpayers significant sums to make claims for tax refunds, such as the marriage tax allowance and working-from-home relief, can no longer trade after it was found to have committed serious anti-money laundering breaches.

The move comes weeks after HMRC outlined greater protections for customers using repayment agents.

RIFT Tax Refunds have applauded HMRC’s decision to banning the company, a move they say will only help drive transparency and improvement within the sector. 

It’s estimated that around 11,000 customers have had their refund applications paused while the investigation was carried out, with HMRC now automatically processing these refunds which are thought to total approximately £1.7m. 

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While this will be done automatically, those impacted will now need to wait even longer for HMRC to action these refunds, at a time when their household finances are no doubt stretched thin due to the cost of living crisis. 

CEO of RIFT Tax Refunds, Bradley Post, commented:  “The decision to ban Tax Credits Ltd is one to be applauded by the tax repayment industry and demonstrates the real commitment that HMRC is making in raising operating standards.

"The reputation of our sector has long been sullied by a small number of rogue operators who have put their own greed ahead of the interest of the consumer and, while there are just a few, it’s a few too many. 

"RIFT Tax Refunds, like many other reputable names within the space, have been working directly with HMRC during their consultation into third-party tax rebate agents in order to bring industry standards up to scratch. 

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"The requirement for all agents to register to help improve transparency and increase trust is one that has been long overdue, and it is pleasing that HMRC has taken decisive action now in dealing with a rogue operator rather than waiting any longer.”

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said on Monday: "TCL have ignored their responsibilities under the anti-money laundering measures designed to protect us all from financial crime.

We will not allow a small number of bad actors to tarnish the reputation of the whole tax agent sector.

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"It is crucial taxpayers understand the entitlements they can claim directly from HMRC and are properly protected from the misleading tactics used by some repayment agents. 

"The greater protections we’re bringing in will help to stop people unwittingly losing their hard-earned money to misleading agents."