Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
A tax agency which charged taxpayers “significant” sums to make claims for tax refunds has been stopped from operating by HMRC.
Tax Credits Ltd (TCL) can no longer trade as a repayment agent after it committed “serious” anti-money laundering breaches. As a result of breaching the regulations, it is now a criminal offence for TCL to trade as a tax repayment agent.
The move comes weeks after HMRC outlined greater protections for customers using repayment agents.
Taxpayers can use repayment agents to make claims for repayment of tax. However, a large number of taxpayers have complained about the lack of transparency in agents’ processes for signing up clients and high charges for using their services.
Angela MacDonald, HMRC’s deputy CEO and second permanent secretary, said: “TCL have ignored their responsibilities under the anti-money laundering measures designed to protect us all from financial crime. We will not allow a small number of bad actors to tarnish the reputation of the whole tax agent sector.
“It is crucial taxpayers understand the entitlements they can claim directly from HMRC and are properly protected from the misleading tactics used by some repayment agents. The greater protections we’re bringing in will help to stop people unwittingly losing their hard-earned money to misleading agents.”
Around 11,000 TCL clients, whose claims had been paused during investigations into TCL, will now receive their tax refund directly from HMRC.
