The UK tax authority has been urged to simplify the process of claiming tax relief worth billions of pounds a year, as increasing numbers of taxpayers turn to specialist refund agents charging up to 40p in every pound repaid.
The intricacies of the UK tax system have led to greater demand for refunds, including from higher earners, who are entitled to claim tax relief on their pension contributions and Gift Aid donations, plus those who have underpaid benefits such as tax credits, and trade union members, who can claim relief on subscriptions.
All are entitled to apply directly to HM Revenue & Customs for refunds going back up to four years. But tax professionals have warned that the convoluted process is putting individuals off claiming what they are owed themselves, and pushing them towards growing numbers of no-tax-rebate no-fee services.
Meredith McCammond, a technical officer at the Low Incomes Tax Reform Group, which advocates simplifying the tax code, said HMRC’s website failed to navigate claimants clearly to the relevant forms and guidance. Phone support and long waiting times on calls should also be addressed, she said.
“It puts people off having a bash themselves, and so they turn to companies they think have an inside track with the Revenue.”
Anita Monteith, technical director at the Institute of Chartered Accountants in England and Wales, said it was “a great shame” that more people did not claim their reliefs directly from HMRC. “People will perhaps not be aware when they are being taken for a ride.”
Source: All text from FT.com
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