Taxpayers lose out on third-party rebate firms’ deals

TAXPAYERS are losing hundreds of pounds in tax rebates to third-party companies instead of claiming directly through HM Revenue and Customs, according to a report by Which?

In a survey of 4,000 people, the consumer group found that one in five had been contacted by a tax refund company, heard of one by word of mouth or come across one online.

Tax rebates are free to claim directly through HMRC but refund companies charge service fees of 25 to 48 per cent.

Which? found that when service costs are added, customers are sometimes left with less money than the company that processed the rebate. Some companies use similar branding and language to HMRC in their letters, misleading taxpayers.