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HMRC acts on tax repayment agents


Published: 08 Dec 2023 Update History

ICAEW welcomes further HMRC action to protect taxpayers that use repayment agents.

HMRC has acted on three fronts to counter the risks posed by some repayment agents. 

R40 (PPI) claims 

HMRC has been receiving a high volume of claims for repayment of tax deducted from interest on PPI claims. Some of the claims are for taxpayers who have never received interest on PPI claims, and some are claims made without the taxpayer’s full knowledge.  

On 26 October 2023, HMRC suspended processing of all R40 (PPI) claims while it considered the best way to manage this risk. HMRC has now changed the requirements for submitting a repayment claim.   

HMRC now requires evidence of the PPI claim before it will progress a claim for repayment of tax deducted. Claims can continue to be made using the R40 form but supplementary evidence must be attached.  

The supplementary evidence required is either:   

  • the final response letter from the company that made the PPI payment to the taxpayer; or 
  • a certificate from the company that refunded the taxpayer to confirm the amount of tax deducted.  

All unprocessed claims will be returned to the original claimant, or their agent, asking for the claim to be resubmitted with the required supplementary evidence.  

Advertising Standards Authority 

HMRC has been working closely with the Advertising Standards Authority (ASA). As a result, the ASA issued an enforcement notice and a press release. This is expected to lead to further collaborative work between HMRC and the ASA.

Research and development (R&D) 

At the Autumn Statement 2023, the government announced that assignments of the rights to R&D tax credit repayments will be prohibited with no new assignments being accepted from 22 November 2023.  

The Finance Bill also includes legislation to remove the use of nominations for R&D tax credit repayments for claims made on or after 1 April 2024. 

Autumn Statement

On 22 November 2023, Chancellor Jeremy Hunt delivered the Autumn Statement. Read ICAEW's analysis and reaction.

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