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Original poster

Tax Returned Ltd Threatening Legal Action

13 replies

HumphreysCorner · 28/02/2024 14:29

A few years ago I signed up with a company called Tax Returned Ltd who do the work for claiming back overpaid tax which they did and charged their hefty fee. All ok.

Fast forward to April 2023 when I tried to do a joint claim with DH but he was having none of it so although I forwarded documents to them no work was done.

In December 2023 DH contacted HMRC to transfer some of his tax allowance to me and they backdated it and sent me a cheque. As I was still registered with Tax Returned at the time HMRC sent them a copy.

Tax Returned want a cut of the money, over £300. I keep contacting them by email to explain it wasn't my claim and I don't owe the fee but now they are threatening legal action.

Not sure what to do.

OP posts:
prh47bridge · 28/02/2024 15:57

The refund has come to you. Under Tax Returned's Terms and Conditions, that means they are entitled to a fee. I think this is what they class as an Unrelated Refund, which means the fee should be no more than £96. As the refund came direct to you, I think you have an argument that there should be no fee or only a small fee.

If they take you to court, you need to file a defence giving the information you have here along with any supporting evidence to show that the refund was not as a result of anything they did and that it came direct to you.

Original poster
HumphreysCorner · 28/02/2024 17:17

Thank you, as it was DH's claim but they had to send the cheque in my name I feel they don't have a claim to fees. They hadn't done any of the work as DH is not registered with them. I'll keep all emails sent from me and them.

OP posts:
Ilovemyshed · 28/02/2024 17:23

He transferred his allowance and you got the refund, so you owe them. Pay up.

MrsMoastyToasty · 28/02/2024 17:26

There's a charity called Taxaid who might be able to help with advice.

Original poster
HumphreysCorner · 28/02/2024 17:28

@Ilovemyshed even though they didn't have anything to do with DH's claim?

OP posts:
Original poster
HumphreysCorner · 28/02/2024 17:31

@MrsMoastyToasty thank you, I'll take a look.

OP posts:
PickledPurplePickle · 28/02/2024 17:57

What does your contract with them say?

I suspect you owe it

this is what you get when you deal with awful
companies like this

prh47bridge · 28/02/2024 18:58

HumphreysCorner · 28/02/2024 17:28

@Ilovemyshed even though they didn't have anything to do with DH's claim?

You have appointed them to act as your tax agent. Under their terms, they are entitled to a fee for any refund you receive, regardless of whether they had anything to do with it. However, as this refund is not a result of anything they have done, it should be classed as an unrelated refund and their fee should be no more than £96.

If you don't want to pay at all and they take you to court, you will have to argue that the relevant terms of the contract are unfair.

Original poster
HumphreysCorner · 28/02/2024 19:01

Oh that's rubbish. Silly me for getting involved.

OP posts:
TeenyTinyCrocodile · 28/02/2024 19:36

I don't know the ins and outs of this specifically, nor how agressive this firm is, but my approach would be to put the money aside to pay it promptly if needed (ie if you should lose a court case you need to get it paid in full pronto), and let them take you to court over it should they wish to; get your defence ready in advance so there is no scrabbling about. Chances are they won't.

Don't discuss it further with them, definitely, you could put it in writing (letter, signed-for) very simply that "this is not my debt", no further explanation (even if you gave one already, don't give any more). You may wish to make sure they have the right address for you if you move so you don't get caught out with a legal action you didn't know about and a CCJ resulting. That letter should be similar, "as a courtesy regarding the above matter, which I must reiterate is not my debt, I inform you that I have changed address to XYZ". (Never overexplain to these types of companies though, literally a sentence will do.)

Hopefully the matter will time-limit itself out and become statute barred (6 years from last acknowledgement of the debt, this can be quite broad if you've tried to give some explanation so start counting from the last day you spoke or emailed with them). There are lots of websites to help with the wording of such things or try CAB. Watch our for them selling the debt on and you getting another payment request/threat of court action in 5.5 to 5.75 years' time, keep good records so that you haven't forgotten what this is or why you are not paying it.

IANAL etc etc so do doublecheck this advice.

Original poster
HumphreysCorner · 28/02/2024 19:42

They didn't reply to my last email on the 30th January then sent a reminder today so I emailed back to ask for proof again of DH's claim that they think they dealt with. Not looking good is it?

OP posts:
VeniVidiWeeWee · 28/02/2024 22:41

HumphreysCorner · 28/02/2024 17:17

Thank you, as it was DH's claim but they had to send the cheque in my name I feel they don't have a claim to fees. They hadn't done any of the work as DH is not registered with them. I'll keep all emails sent from me and them.

Please read PRH's response again.

They will have read the terms and conditions. It doesn't matter what you feel is fair. Prepare a defence as they have suggested.

Original poster
HumphreysCorner · 29/02/2024 09:16

Thank you all.

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