ICAEW members are receiving reports of tax repayments being made to agents who are unknown to the taxpayer. ICAEW’s Tax Faculty explains how to report such cases to HMRC.
Formal assignments of income tax repayments have been void since 15 March 2023. A transitional period during which assignments were treated as nominations ended on 20 July 2023.
However, ICAEW members and others have reported that problems with repayment agents continue. This issue also featured on BBC’s Morning Live, which included an interview with Tax Faculty Board member, Rebecca Benneyworth.
Taxpayers will usually become aware of this problem when they receive a tax calculation (P800) showing that they are due a repayment that will be paid to a third party that they do not recognise. In this situation they should report the problem directly to the relevant HMRC team using the online form for reporting problems with repayment agents.
ICAEW’s Tax Faculty has the following recommendations:
- Taxpayers who pay income tax through PAYE should use HMRC’s app or online services to check their tax and claim any allowances or reliefs that they are entitled to.
- Taxpayers who prefer assistance from an agent should appoint a reputable agent such as a chartered accountant.
- HMRC offers an extra support service to those that need extra help.
ICAEW’s Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.