Consumer group Which? has urged taxpayers to avoid using so-called ‘refund firms’ to claim tax rebates.
Which? stated that people are losing hundreds of pounds by using third-party companies to claim tax rebates rather than going directly to HMRC.
Research carried out by the group found that one in five people had been either contacted directly by a tax refund company via email, phone, letter or text message or found one online.
Two in five of those contacted by a tax refund company said they used it to claim a tax rebate. Such companies often charge fees anywhere between 25% to 48% of an individual’s rebate. According to Which? Extra admin fees and VAT are often added on top.
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