Tax specialists, RIFT Tax Refunds, have applauded HMRC’s decision to ban a rogue repayment operator found guilty of serious anti-money laundering misconduct, a move they say will only help drive transparency and improvement within the sector.
Tax Credits Ltd has been forced to halt operations due to what HMRC have described as serious anti-money laundering breaches.
It’s estimated that around 11,000 customers have had their refund applications paused while the investigation was carried out, with HMRC now automatically processing these refunds which are thought to total approximately £1.7m.
While this will be done automatically, those impacted will now need to wait even longer for HMRC to action these refunds, at a time when their household finances are no doubt stretched thin due to the cost of living crisis.
CEO of RIFT Tax Refunds, Bradley Post said, “The decision to ban Tax Credits Ltd is one to be applauded by the tax repayment industry and demonstrates the real commitment that HMRC is making in raising operating standards.
The reputation of our sector has long been sullied by a small number of rogue operators who have put their own greed ahead of the interest of the consumer and, while there are just a few, it’s a few too many.
RIFT Tax Refunds, like many other reputable names within the space, have been working directly with HMRC during their consultation into third-party tax rebate agents in order to bring industry standards up to scratch.
The requirement for all agents to register to help improve transparency and increase trust is one that has been long overdue, and it is pleasing that HMRC has taken decisive action now in dealing with a rogue operator rather than waiting any longer.”
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