If you claim a tax refund, be sure to use a
company bonded by the Association of Tax Agents (ATA). If a company
is not bonded by the ATA and goes out of business, you could lose
your refund.
97% of travellers who work in the UK overpay their PAYE tax. However,
the Inland Revenue laws allow this overpayment to be repaid to the
taxpayer. A large number of tax agents have sprung up, offering to
act on the behalf of the taxpayer in claiming this money back. They
normally charge a commission rate (between 15% and 25%) on the amount
received.
In the past 4 years, several tax agents in the UK have gone out of
business. These insolvencies were caused by one of two reasons:
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An intent to defraud their clients, by
keeping the tax rebate, not paying the money over to the client
and closing the business.
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Charging unusually low commission rates,
in a bid to generate more business. This causes the company
to lose money and to face closure, and spend the client's funds
to cover operating costs. |
The Association of Tax Agents was formed in 1998 to protect the
clients of member companies against financial loss. To become a
member of the ATA, the companies have to satisfy strict entry criteria,
in particular, maintaining a separate client account for monies
collected from Inland Revenue.
Since the ATA was formed, no bonded member has ceased trading. However, in the unlikely event of a company facing closure, the ATA will take over the processing of the refund application when the Inland Revenue has not yet paid out the rebate. You will not be charged anymore than was previously agreed with by the original Tax Agent Company. In the situation whereby the Inland Revenue has already paid out on a claim and the Tax Agent Company has received the rebate, the ATA does not have any liability. The ATA is not responsible for another member company's action in this situation. If this is the case, the ATA will contact the Inland Revenue and determine the details of the payment.
If you require more information please email: info@associationoftaxagents.co.uk
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