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HMRC has confirmed that taxpayers who have reclaimed tax payments using the repayment agent Tax Credits Ltd (TCL) since December 2021 will be due a direct refund from HMRC.
TCL introduced an online ‘fast-track’ sign up process in December 2021 which following investigation HMRC found did not lead to a valid assignment of repayments to TCL – HMRC should not have made the payments to TCL. HMRC estimates that up to 60 000 of the company’s clients were affected and the department is writing to affected individuals and will make repayments to them in due course.
The Low Income Tax Reform Group (LITRG) had raised concerns about certain tax refund companies with HMRC around these letters of assignment after being contacted by taxpayers who did not know that HMRC had received letters of assignment with their ...
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