Tax refund scam / unethical company / sharp practice.

[standardpostage]

A family member, who I have to be honest, is not the sharpest knife in the drawer, has recently been scammed, by a tax refund site.
The company is called "Tax Refund Ltd". I think they were contacted via Facebook advertising.
Unknowingly to my family member, the company became their "deed holder" / "deed of assignment". This "deed" gives them full power over their tax affairs.
Family member had tax rebate of approximately £1,500. Which got sent to Tax Refund Ltd, by tax office.
Tax Refund Ltd keeps 28% + VAT and £50 + vat. Still waiting for refund now from Tax Refund Ltd.
I said I would help out. Lots of letter writing, phone calls and emails involved.
This is just a warning to members, to be careful what you click on.

[DastardlyDick]

There's no "scam" there - just their t & c's are not exactly Customer friendly. If they don't give your relative any of the rebate, then it'll be a scam.
Thank You for the warning though. 

[standardpostage]

Cheers, still working on getting a refund, from Tax Refund Ltd.
Basically they will keep roughly £600 I think, for doing something that is free.
Also still trying to remove Tax Refund Ltd as Deed Holder.
They got in as a "go between" unknown to us.

[RandomGuy99]

There's other companies like this that will sort out getting a driving licence for you.  There must be enough people falling for these scams to keep them running them.

[mr.bluesky]

What I don't understand if you are receiving a tax refund from HMRC why do you need to go through  a separate company or organisation or am I missing something here 

[standardpostage]

There's other companies like this that will sort out getting a driving licence for you.  There must be enough people falling for these scams to keep them running them.

Many years ago, a colleague of mine, got conned by this driving licence scam. I think they were charged about four times the normal fee.
The colleague was intelligent, but I think they were just rushing the renewal or whatever they were doing 

[RandomGuy99]

What I don't understand if you are receiving a tax refund from HMRC why do you need to go through  a separate company or organisation or am I missing something here 

You don't but some people Google "claim a tax refund" or "buy a driving licence" and click on the top result without checking the URL and end up being scammed.

[standardpostage]

What I don't understand if you are receiving a tax refund from HMRC why do you need to go through  a separate company or organisation or am I missing something here 

You don't need to go through a separate company or organisation. They prey on vulnerable people, with misleading adverts on Facebook etc.
For example; no win no fee. "But" if you win a tax refund, an extortionate fee kicks in. Problem is they become your deed holders. They have full control of your tax affairs.
My family member is slightly vulnerable. We try to protect them, but were not always successful.

[animaladam]

What I don't understand if you are receiving a tax refund from HMRC why do you need to go through  a separate company or organisation or am I missing something here 

As an accountant (without those stupid fees or t and Cs), its normally to do with timing or ease. I get loads of people refunds. Could they do it themselves? Yup. But I make their life easier.

Personally, I hate the companies which take a percentage.

[standardpostage]

As an accountant (without those stupid fees or t and Cs), its normally to do with timing or ease. I get loads of people refunds. Could they do it themselves? Yup. But I make their life easier.

Personally, I hate the companies which take a percentage.

Thanks for being one of the good guys, appreciated 

[StingRay]

It's similar to the "no win, no fee" lawyers, what they don't say is that is that if they don't think you have a chance they are not interested in representing you!

[southcoastpunter]

It's similar to the "no win, no fee" lawyers, what they don't say is that is that if they don't think you have a chance they are not interested in representing you!

well, NO. no one in their right mind would offer to do something like that for nothing!  (if they think you have no chance).

Where i think there maybe some cause for comment is that they often set the "likely to win" bar fairly high so if not a "probably def will win" case they aren't interested.

[Adoniron]

It's similar to the "no win, no fee" lawyers, what they don't say is that is that if they don't think you have a chance they are not interested in representing you!

Well obviously they are not going to take on a case which has no chance of success. Why would they?

[RandomGuy99]

Has anyone try any of those diesel claim companies?

I'm thinking of making some claims just to see if I can get any free money.

[daviemac]

Has anyone try any of those diesel claim companies?

I'm thinking of making some claims just to see if I can get any free money.

I've got no time for any of these types of things, there's another one about talcum powder now. With the diesel one who has actually lost anything or suffered in any way by owning a car during the time they say.   

There's no such thing as 'free money' BTW, we all pay for these types of claims with higher prices. It's the same as shoplifting and insurance fraud we all end up paying in the end.

[RandomGuy99]

I've got no time for any of these types of things, there's another one about talcum powder now. With the diesel one who has actually lost anything or suffered in any way by owning a car during the time they say.   

There's no such thing as 'free money' BTW, we all pay for these types of claims with higher prices. It's the same as shoplifting and insurance fraud we all end up paying in the end.

People have lost money on their cars as the second hand prices for these vehicles is lower than others. In other countries the manufacturers have bought the vehicles from their owners for dwcent amounts of money. I think they them scrap them or update their engine management systems and send them to south america for resale. It's cost VW £30 billion so far External Link/Members Only including £193M in the UK.  It shouldn't result in any higher prices. They've just taken a hit in profits and their balance sheet. They've probably had to sell a few assets to pay the bill.

I wasn't going to do anything about my previously owned diesels but I thought I might try it on a "no win no fee" basis.

[StingRay]

Well obviously they are not going to take on a case which has no chance of success. Why would they?

Agreed, but they mislead you with statistics about their success rate, clearly inflated by the fact that they only take on certainties!!!

[daviemac]

People have lost money on their cars as the second hand prices for these vehicles is lower than others. In other countries the manufacturers have bought the vehicles from their owners for dwcent amounts of money. I think they them scrap them or update their engine management systems and send them to south america for resale. It's cost VW £30 billion so far External Link/Members Only including £193M in the UK.  It shouldn't result in any higher prices. They've just taken a hit in profits and their balance sheet. They've probably had to sell a few assets to pay the bill.

I wasn't going to do anything about my previously owned diesels but I thought I might try it on a "no win no fee" basis.

I'll rephrase it a bit then, what have you lost financially or in any other way as a direct result in owning a diesel car.   

[RandomGuy99]

I'll rephrase it a bit then, what have you lost financially or in any other way as a direct result in owning a diesel car.   

Personally, I've lost nothing as I drove mine into the ground and got decent trade ins when I bought new ones.

[myothernameis]

Unknowingly to my family member, the company became their "deed holder" / "deed of assignment". This "deed" gives them full power over their tax affairs

I wonder under the consumers act, could something be done, for this to be reversed.   So I would hope if there some sort of contract, there also a colling of period, say for instance 7 or 14 days

[daviemac]

Personally, I've lost nothing as I drove mine into the ground and got decent trade ins when I bought new ones.

So you just want to put a claim in because you've seen an advert that you can even though you haven't lost anything. That's what's wrong these days, too many people claiming money they aren't really entitled to which cost the rest of us more in the long run.   

[RandomGuy99]

So you just want to put a claim in because you've seen an advert that you can even though you haven't lost anything. That's what's wrong these days, too many people claiming money they aren't really entitled to which cost the rest of us more in the long run.   

I don't think it will cost us all in the long run. The big auto manufacturers have plenty of cash.

[standardpostage]

I wonder under the consumers act, could something be done, for this to be reversed.   So I would hope if there some sort of contract, there also a colling of period, say for instance 7 or 14 days

Were not sure when this was done, but it was more than 14 days ago  My family member does not know either.
As far as reversing the situation, I have written to HMRC, telling them I don't want Tax Refund Ltd, to be my deed holder.
And I have written to Tax Refund Ltd, to say I don't want them to be my deed holder.
I am now waiting for replies and refunds from both parties.
If I don't hear anything in about 2 weeks, I will telephone Tax Refund Ltd.
Problem with ringing tax office is, I was put on hold for 45 minutes last time.
I will update thread, when anything happens.
PS When I contact these two organisations, I do it as my family member.

[daviemac]

I don't think it will cost us all in the long run. The big auto manufacturers have plenty of cash.

Typical selfish attitude that costs us all money in the long run. If it wasn't for people like you putting dodgy claims in for anything you can get free the rest of us wouldn't have to pay for it.

If you think any company is going to pay out and not recoup it somehow then I don't know what to say.

If you are happy to be part of the ripoff then that's up to you so I'll leave you to get on with your dodgy claim and make money for the lawyers.

[RandomGuy99]

Typical selfish attitude that costs us all money in the long run. If it wasn't for people like you putting dodgy claims in for anything you can get free the rest of us wouldn't have to pay for it.

If you think any company is going to pay out and not recoup it somehow then I don't know what to say.

If you are happy to be part of the ripoff then that's up to you so I'll leave you to get on with your dodgy claim and make money for the lawyers.

There's nothing dodgy about it.  It turns out my cars had devices in them to make them appearto be environmentally cleaner than they actually were, so they are eligible for the payouts. I'm simply claiming the money I am entitled too.

[southcoastpunter]

It's cost VW £30 billion so far   It shouldn't result in any higher prices. They've just taken a hit in profits and their balance sheet. They've probably had to sell a few assets to pay the bill.

I don't think it will cost us all in the long run. The big auto manufacturers have plenty of cash.

i usually try to be respectful in my comments but - what stupid comments. By your same logic you can say theft or fraud against any big company is ok as they have plenty of money. Or benefit fraud come to that - its only against the government and they can always just "print" some more money to pay for it.

Personally, I've lost nothing

I'm simply claiming the money I am entitled too.

one of those two statements is wrong. if you have lost nothing, why do you feel you are entitled to anything?

[RandomGuy99]

i usually try to be respectful in my comments but - what stupid comments. By your same logic you can say theft or fraud against any big company is ok as they have plenty of money. Or benefit fraud come to that - its only against the government and they can always just "print" some more money to pay for it.

one of those two statements is wrong. if you have lost nothing, why do you feel you are entitled to anything?

Anyone owning an affected vehicle is eligible to make a claim. I guess I don't know for sure that I didn't lose any money when I did my trade ins.

[daviemac]

Anyone owning an affected vehicle is eligible to make a claim. I guess I don't know for sure that I didn't lose any money when I did my trade ins.

Nor do you know how much you saved when buying it either.   

The only people to win in these types of claims are the lawyers, everyone else is the loser.

[RandomGuy99]

Nor do you know how much you saved when buying it either.   

The only people to win in these types of claims are the lawyers, everyone else is the loser.

Anyway.... i started this by asking if anyone had tried any of these diesel claims companies. I haven't actually decided whether to make a claim just yet. I've just been told I owned a number of vehicles that were affected by the issue.

I agree that lawyers are the ones who get rich out of these situations. If there's a no win no fee option then I might get some money back, but obviously the lawyers will take their cut of any payout.

[standardpostage]

Update. My family member eventually received £1000 from the unscrupulous, unethical Tax Returned Ltd company. The original amount from HMRC was £1600.
The dodgy company, Tax Returned Ltd, kept £600, simply for being a third party. Equates to an extortionate fee of approximately 38%.
The other ironic thing about is that, of the £600 fee, 20% of that, £120, goes back to HMRC.
Getting the £1000 was not an easy task. Phone calls that just went to answer machine, letters and emails that went unanswered for weeks on end.

[RedKettle]

Update. My family member eventually received £1000 from the unscrupulous, unethical Tax Returned Ltd company. The original amount from HMRC was £1600.
The dodgy company, Tax Returned Ltd, kept £600, simply for being a third party. Equates to an extortionate fee of approximately 38%.
The other ironic thing about is that, of the £600 fee, 20% of that, £120, goes back to HMRC.
Getting the £1000 was not an easy task. Phone calls that just went to answer machine, letters and emails that went unanswered for weeks on end.

Just to be pedantic the VAT within a £600 gross bill is £100 not £120. £500 x 20%.

 

[standardpostage]

Just to be pedantic the VAT within a £600 gross bill is £100 not £120. £500 x 20%.

 

Thanks for reply 
But, I got my equation by using a calculator. £600 X 20% VAT= 120.
Am I doing something wrong ? 

[RedKettle]

Thanks for reply 
But, I got my equation by using a calculator. £600 X 20% VAT= 120.
Am I doing something wrong ? 

If they deducted a £600 fee than that £600 includes VAT. So £600 is 120% of the net fee.

If you divide 600 by 120 and multiply by 100 you get the net fee of £500.

To check then use your calculation on the £500 - 500 X 20% = £100.  £500+£100 = £600.

Sorry not really relevant to your thread, just cannot help myself!

[standardpostage]

If they deducted a £600 fee than that £600 includes VAT. So £600 is 120% of the net fee.

If you divide 600 by 120 and multiply by 100 you get the net fee of £500.

To check then use your calculation on the £500 - 500 X 20% = £100.  £500+£100 = £600.

Sorry not really relevant to your thread, just cannot help myself!

OK cheers