Martin Lewis’ MoneySavingExpert highlights thousands set for tax refund after being caught out by trick

Thousands of Britons are due a tax refund within weeks, Martin Lewis’ MoneySavingExpert has revealed.

It comes after an investigation from the consumer website resulted in a tax rebate firm being shut down by HMRC.

Tax Credits LTD was found to have committed serious anti-money laundering breaches.

An investigation by Martin Lewis’ website in July 2022 found the firm had pocketed cash from hundreds of people who complained about being tricked.

Despite tax rebates being free to request by yourself, the group took 48 per cent of any rebate due.

Tax rebate firms help those submitting tax repayment claims for a fee.

By signing a paper or electronic form, you give them permission to process the claim.

Following a HMRC investigation, it was announced 60,000 people who had been caught out by the firm would be refunded directly.

The research found people enquiring with Tax Credits Ltd hadn’t been shown or asked to sign legal documentation that would make it clear claims would be paid to the company.

Anyone who reclaimed tax payments through Tax Credits Ltd since December 2021 are therefore due a direct refund.

Martin Lewis' website found a website had not been explicit with its repayment policy
Steve Parsons

While the firm was being investigated, HMRC stopped refunds for thousands of customers.

These will now be processed after the company’s closure.

If you have not received any money, you will get the full amount from HMRC.

The remaining 48 per cent will be paid to you by HMRC if Tax Credits Ltd have already paid the 52 per cent back.

Funds will be processed automatically, and HMRC will be in contact by the end of March.

Following the investigation into the firm, HMRC is now reviewing the processes and documentation behind similar companies.

While the process is eased for customers by using these firms, a cut of the money is typically taken.

If you feel you may be due a rebate, it is worth applying yourself rather than using a firm
Dominic Lipinski

The normal amount deducted from your payout is between 25 per cent and 48 per cent, while applying directly through HMRC costs nothing.

If you opt to use a rebate firm, it is important to check the terms and conditions on documents and websites thoroughly.

If you are concerned you have been duped by similar firms, you should get in touch with HMRC.

Having the wrong tax code is a typical reason for paying too much tax.

You may move jobs which could see you shift to a different tax code without noticing, or you may pay too much on a self-assessment return.

HMRC will notify you if you are due a tax rebate by sending you a letter called a P800 or a simple assessment letter.

If you claim via the Government’s website, the money will be sent to your account within about five days.

Alternatively, you can wait 45 days if you would prefer a cheque payment, which will come in the post.