Tax refund rip-off victory

THE taxman will finally clamp down on rip-off rebate firms after Money Mail exposed devious tactics used by repayment agents.

Unregulated firms charge punitive fees for tax refunds that customers can claim for free. HMRC will ban assignments — iron-clad contracts which transfer the right for a repayment from the taxpayer to the agent.

We found firms were flooding social media sites with misleading questionnaires tying taxpayers into these agreements. Scores of readers said they had no idea they were entering into a contract, which in some cases allowed agents to take a chunk of future rebates.

Under tougher rules, agents will have to register with HMRC and ensure their terms are clear. Last year, we helped win back £6 million for taxpayers who lost cash at the hands of Tax Credits Ltd.