MARTIN Lewis' MoneySavingExpert has revealed that thousands of Brits are due a tax refund within weeks.

It comes as a tax rebate firm has been shut down by HMRC following an investigation by the consumer site.

The firm Tax Credits LTD was found to have committed serious anti-money laundering breaches.

An MSE investigation in July 2022 revealed hundreds of people had complained about being tricked, with the firm pocketing half of their cash.

The firm took 48% of any rebate due, even though tax rebates are free to request by yourself.

Tax rebate firms help submit tax repayment claims but for a fee.

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They will get you to give them permission to do so by signing a paper or electronic form.

Following the HMRC investigation last year, it found that people enquiring with Tax Credits Ltd online hadn't been shown or specifically asked to sign legal documentation that would make it clear claims would be paid to the company. 

HMRC later announced that it would refund 60,000 people directly who had been caught out by the firm.

People who reclaimed tax payments Tax Credits Ltd since December 2021 are due a direct refund.

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HMRC paused refunds for thousands of customers while the firm was being investigated and now that the company has been shut down, they'll also get the cash.

If you haven't had any money back you'll get the full amount from HMRC.

And, if you've already had 52% back from Tax Credits Ltd you'll get the remaining 48% from HMRC. 

You'll receive refunds automatically and HMRC will be in contact by the end of March.

HMRC is reviewing the processes and documentation of other similar repayment agents.

These firms claim to take the hassle out of claims for you but typically take a cut of your money.

This is typically between 25% and 48% of your pay out – but it costs nothing to apply direct through HMRC so it's best to avoid them.

It's important that anyone thinking of using a rebate firm thoroughly reads the terms and conditions on documents and websites.

You need to understand in advance the fees you'll pay, the service you're signing up for and any legal contract you may be entering into.

If anyone is worried they may have been duped by similar firms, you should contact HMRC.

How to claim a tax refund for free

There are several reasons why you may end up paying too much tax to HMRC.

You could move jobs and be on the wrong tax code, or you might pay too much on a self-assessment tax return.

You may have stopped working and had no taxable earning or benefits for the rest of the tax year, or changed from full-time to part-time work and your tax code not yet updated.

You can claim for a refund or rebate if you pay too much on a self-assessment tax return, for example, or on a redundancy payment.

There is also a Marriage Allowance, that lets a lower-earning spouse transfer some of their tax-allowance to a higher earning partner.

If you are due a tax rebate, HMRC will let you know by sending you a letter called a P800 or a simple assessment letter.

This letter will tell you if you can claim online through the government's website.

If you claim online, the money will be sent to your account within about five days.

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Or you can wait for 45 days and the government will send you a cheque in the post.

If you don't receive a P800 and think you have overpaid on your tax you can use the government's income tax calculator to figure out how much you should have been paid.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected]

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