Association of Tax Agents
Ensure to use a company bonded by the Association of Tax Agents (ATA) when claiming your tax refund. If your refund company is not bonded by the ATA and goes out of business, you could lose your refund.
97% of travellers who work in the UK overpay their PAYE tax. A large number of tax agents have sprung up, offering to act on the behalf of the taxpayer in claiming this money back. They normally charge a commission rate (between 15% and 25%) on the amount received.
In the past 4 years, several tax agents in the UK have gone out of business.
These insolvencies were caused by one of two reasons:
- An intent to defraud their clients, by keeping the tax refund, not paying the money over to the client and closing the business.
- Charging unusually low commission rates, in a bid to generate more business. This causes the company to lose money and to face closure, and spend the client’s funds to cover operating costs.
The Association of Tax Agents was formed in 1998 to protect the clients of member companies against financial loss. To become a member of the ATA, the companies have to satisfy strict entry criteria, in particular, maintaining a separate client account for monies collected from Inland Revenue.
No ATA member has ever or is likely to cease trading, in the unlikely event the ATA will work with the Liquidator to ensure 100% financial protection for our clients.
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