Leeds-based HMRC boss pledges action against firms which tarnish tax agent sector

As a result of breaching the regulations, which are predominately designed to prevent businesses being exploited by criminals to launder money, it is now a criminal offence for TCL to trade as a tax repayment agent. The move comes weeks after HMRC outlined greater protections for customers using repayment agents.

HMRC said in a statement: “Taxpayers can use repayment agents to make claims for repayment of tax, and while many customers are happy with the service they receive, a large number of taxpayers have complained about the lack of transparency in agents’ processes for signing up clients and high charges for using their services.”

Leeds-based Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “TCL have ignored their responsibilities under the anti-money laundering measures designed to protect us all from financial crime. We will not allow a small number of bad actors to tarnish the reputation of the whole tax agent sector.

“It is crucial taxpayers understand the entitlements they can claim directly from HMRC and are properly protected from the misleading tactics used by some repayment agents. The greater protections we’re bringing in will help to stop people unwittingly losing their hard-earned money to misleading agents.

Around 11,000 TCL clients, whose claims had been paused during investigations into TCL, will now receive their tax refund directly from HMRC.

HMRC will contact all affected clients by the end of March to explain their refund. The refunds will be made automatically, customers do not need to contact HMRC to receive their payment.