TAXrefundCo. - any catch?

[Ari]

My parter has been sent a letter via her union extolling the virtues of an organisation called The Tax Refund Company. Apparently its free, she fills in a form, and they search for tax overpayment and give her 61p of every pound they get back.

Feels a bit too good to be true, just wondered whether there was any catch I've missed?

They reckon they've recovered over £24 millionso far!

[marshalla]

Read what you wrote. It's not free. They're taking 39% for doing something she could do herself.

(and how much of that do the union get for "endorsing" them ?)

[Ari]

She wouldn't know where to start (and neither would I to be honest).

So if there is unclaimed overpayment it will sit there unclaimed for ever. On the basis of getting 0% of it, 61% seems pretty blimmin good.

I do struggle with the concept that HRMC are just taking too much for no reason and then simply keeping it though. Just seems unlikely some how but open to being corrected.

[marshalla]

Odds on, the form will be the equivalent of a HMRC self-assessment form. By the time it's filled in, you might as well do the sums yourself and claim directly - or make the extra payment when you find an underpayment.

You also run the risk that HMRC will decide you should be on self-assessment for the future since PAYE isn't working for you - so you get to fill the form in every year...

You might as well just download the forms from HMRC yourself and see what results you get without promising to give someone else a cut or risking anything else. This sounds like the next PPI to me.

[marshalla]

P.S. - The Grauniad agree with me : http://www.theguardian.com/money/2010/dec/04/tax-r...

[anonymous-user]

I wonder how much of that 39p goes back to the union as a kick back?

[Ari]

That's interesting, thanks Marshalla.

Since she is strictly PAYE, from what you say I can't see there is much to be gained by it really.