HMRC demanding repayment of tax refund - Fast Tax Rebates Ltd again

[Alvinsmalvin]

HMRC asking me to repay a rebate - HMRC - Consumer Action Group

Hi, do you have any update on this? I have received the same letter. 

[unclebulgaria67]

@Alvinsmalvin  You need to send HMRC a request for your data.  Also ask them  in writing to prove you owe the debt stated in their letter and provide a  full breakdown calculation.

 

Make a subject access request to HMRC - GOV.UK

WWW.GOV.UK

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Find out how to ask for access to personal data that HMRC holds about you, or someone who has died.

 

[slick132]

Hi Alvin and welcome to CAG

 

Please start your own new thread here in the HMRC forum.

 

Tell us briefly how you came to get a tax refund, what tax advisor did you use, what is HMRC doing to reclaim from you and are they after the full amount you were refunded.

 

Hi Alvin,

 

I've started you a new thread here to use and give us info about your case.

[Alvinsmalvin]

Hi, 

 

My I also was contacted by a company called Fast Tax Rebates. They said I was entitled to a tax rebate.  I stupidly agreed to go ahead, didn't sign anything and didn't realise they were investing in a scheme on my behalf. 

I have since received a letter from HMRC confirming they are doing a compliance check on the claim. 

 

I received £4000 in total.

 

I am really worried about it because I believe the total amount of tax claimed will be 3 times that.  I have tried to contact FTR but unable to get through. Any help or advise would be much appreciated.

[honeybee13]

Hi. I'm sorry to hear about your problem.

 

Are you able to view your tax returns online with HMRC? They should be on the website if you have your access codes and so on and could give you an idea of what figures have been submitted.

 

FTR seem to have gone to ground but our site team member @slick132 is really good at tax stuff and should be able to help you.

 

HB

[unclebulgaria67]

If FTR were investing to get their clients tax rebates, you need to ask them to supply the information.

 

I should imagine that you are one of hundreds or thousands of people contacted by HMRC and these are all trying to contact FTR.

 

FTR going by the reports of others received more of the money than their clients.

 

 

 

 

 

[Alvinsmalvin]

I cant get access online for some reason. Think I need to ring up to get a password?  

[dx100uk]

access to what?

 

 

[Alvinsmalvin]

Sorry somebody said have I accessed my tax online

[dx100uk]

you gave, even if unknowingly, permission for these scammers to access your HMRC portal.

its in their T&C's.

 

so yes you might well have to phone HMRC and get control of it back.

no harm in telling them why either.

 

as with all these reclaim merchants, if it seems to good to be true...it IS.

 

how did you sign up?

 

 

[slick132]

Hi Alvin,

 

You say above you were contacted by FTR - was this by phone, email, letter, etc ?

 

And do you still have a copy of anything they wrote to you.

 

If you received £4,000, do you know what the total refund was, or what percentage FTR said they'd charge you.

 

FTR were not investing on your behalf. If I understand correctly, FTR submitted a tax refund claim on your behalf stating that you invested in an EIS (Enterprise Investment Scheme) which gave rise to a tax refund to you.

[unclebulgaria67]

If neither FTR or their clients have invested in an EIS,  but may have claimed tax rebates based on a false premise, then I wonder what actions are planned.  Will HMRC just see this as a debt recovery exercise, claiming it back from the taxpayers ? 

 

I wonder whether other clients of FTR in this situation are looking into suing FTR.  Breach of contract ?

[Alvinsmalvin]

Hi somebody from work gave my number to then. 

Somebody called Claire rang me on my mobile I dont have anything bar the emails of me sending my pics.

I spoke to HMRC and they confirmed I2000 was claimed and I received a third of that. 

FTR didn't say they were keeping any percentage.

Nothing was signed. 

HMRC said they will take the Investment off my account which means I will be liable for all tax claimed. 

There was never a contract though?

Literally nothing was signed  

[slick132]

8 hours ago, Alvinsmalvin said:

I dont have anything bar the emails of me sending my pics.

Sending what pics please.

 

Do you recall giving FTR Authority to Act, by signing a form, ticking a consent box, or anything else.

 

I wonder if HMRC have been reckless accepting (however many) tax claims made by FTR on behalf of clients without asking for proof of funds actually invested in an EIS. I'll discuss this with the Site Team.

[dx100uk]

it's amazing that all the cases here are from personal recommendation by 'a mate' ....urm...

 

 

[Alvinsmalvin]

Sorry it meant to say P60s to confirm my earnings.

I emailed them over at the request of Claire on the phone. 

I never signed anything.

Just sent an email confirming home address. DOB and P60s. 

A lot of people that I work with were passing on contact details of colleagues as they would get a referral fee.

Yeah I know.

People would get a referral fee for recommending 'mates' to use the service

[dx100uk]

and you never smelt a rat.....

[unclebulgaria67]

And your mates (?) were paid a commission or other incentive !

[Alvinsmalvin]

Actually looking for advice rather than judgement.

I understand I have made a mistake, believe me I am paying the price for it now

[slick132]

Alvin, you need to send HMRC a SAR immediately.

 

Please confirm how many people you know of were involved in this scenario with FTR.

 

See the advice on the other thread here - https://www.consumeractiongroup.co.uk/topic/435744-hmrc-asking-me-to-repay-a-rebate/

 

Follow the same advice about getting your SAR data but personalise it to reflect your own case.

 

Check here if you're unsure about anything but read thread Dixon's thread first.

Edited June 28, 2021 by slick132
typo

[Alvinsmalvin]

Thank you so much. I will get on to that asap

 

I know of at least 7 people that have had exactly the same scenario. They have all received compliance letters from HMRC

[unclebulgaria67]

I wonder whether all of these affected should make reports to Trading Standards and see if they are willing to pursue the companies directors.

[slick132]

Just so the 2 cases are cross-referenced, a similar case was started recently by another CAGger, Dixon,  here - https://www.consumeractiongroup.co.uk/topic/435744-hmrc-asking-me-to-repay-a-rebate/?do=findComment&comment=5114547

 

Same company - Fast Tax Rebates and same ploy reclaiming tax on behalf of a taxpayer but keeping most of the refund.

 

But keep each thread and case separate, to avoid confusion.

 

[honeybee13]

Alvin, were you ever told which company allegedly had your 'investment' please? Genuine EIS money goes into a company and I just wondered which name was given to HMRC by your 'advisers'.

 

I'm assuming you never put money into a company but FTR claimed tax relief for you anyway?

 

HB

[slick132]

Hi Alvin,

 

The following was kindly posted by CAGger @taxhelper in response to my request for opinion. Please read it carefully and respond here to any Q's raised.

 

I have read all comments/posts in both threads. I know that HMRC are looking closely into what they term “bulk repayment agents" as this story is not unusual. Please feel free to post whichever parts of my comments would prove helpful in these two threads.

 

It appears that both Dixon2094 (“D”) and Alvinsmalvin (“A”) gave FTR some form of authority to act on their behalf. D says clearly “I allow them access to my Government Gateway account” and presumably A also handed over his personal access codes. They should NEVER have revealed this information.

That said, we are where we are.

 

If D and A were recommended by friends/mates to use FTR, and the friend/mate received an introductory commission from FTR, how did the friend/mate get their money? If by bank transfer or cheque they may have FTR’s bank details. Those may help investigations.

 

I see that both D and A have been asked to supply details of the “investment” made on their behalf. In other words – in which EIS company/companies was their money invested? I cannot see a reply to this from either D or A.

 

If, as we all suspect, there is no such investment, and FTR simply stole the money, then this is clearly a scam, a wholly criminal matter to be reported to the police and they must tell HMRC that the crime has been reported and send the crime number to HMRC immediately.

As Unclebulgaria said in post 39 to D’s thread…..D and A must report everything to ActionFraud…..

 

 

 Action Fraud

WWW.ACTIONFRAUD.POLICE.UK

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National Fraud & Cyber Crime Reporting Centre

 

As many victims as possible need to make crime reports so the police and HMRC can pool data to track down O’Hara and McNabb to take necessary action.

 

Once proven compensation may be due via the CICS…

 

 How victims of crime can apply for compensation

WWW.MET.POLICE.UK

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If you've been the victim of crime, find out how to seek compensation for any losses or injuries you have received.

 

As other have said this situation also needs to be reported to the Information Commissioners Office, Trading Standards and Companies House.

 

IMO all victims should also report this to their Members of Parliament and local/national press.

 

If publicity is high then authorities will not be able to ignore it and HMRC may well be forced to take a more sympathetic approach.

 

Perhaps e-victims.org would also be able to help.

 

 The issue of success at appeal has been somewhat dismissed but I think a different outcome is possible. Particularly if it is proven they were victims of a scam/crime.

Both D and A were ignorant about what was going on. They trusted what they believed to be an authoritative source. HMRC will undoubtedly counter this with the mantra “ignorance of the law is no excuse” but that has been held to be too short sighted in several recent cases.

 

 An exception to this general principle would be justifiable where there are finely balanced issues which are unclear.

 

In one case the judge considered that a taxpayer had informed his advisor but the advisor (in this case FTR) had failed to inform the taxpayer of his filing obligations. The judge accepted this argument on the facts and quashed the penalty.

 

Whatever the outcome of the debate on ignorance of the law D and A should consider running alternative grounds for ‘reasonable excuse’ or, if penalties are imposed in the end, a ‘special reduction’. Such arguments succeeded in Welland v HMRC [2017] and  Hart v HMRC [2018] despite the judges’ strict approach on the main issue of ‘ignorance’.