The warning comes after the LITRG has found examples of taxpayers who have seemingly issued ‘inappropriate’ tax relief claims through self-assessment tax returns.

One case saw a refund company ask a taxpayer to register for a self-assessment tax return to claim employment expenses, however, the company then used the individual’s Government Gateway login credentials to prepare and submit a tax return which included claims for tax relief under the Enterprise Investment Scheme (EIS). 

This claim generated large refunds which were sent to the refund company and then paid to the taxpayer after commission had been deducted. The taxpayer was unaware of the claim made on their behalf. HMRC has now contacted the taxpayer demanding that they repay the full amount as it was incorrectly claimed.