Companies that have reclaimed tax from HMRC on behalf of HGV drivers may be in for a nasty shock after one driver was told he might have to repay thousands of pounds.
The individual, who asked to remain anonymous, said he had answered an advert in a local newspaper, which said he could be entitled to a tax rebate if the company he had worked for had not paid enough in overnight allowances.
He filled out the paperwork but said he resisted attempts by the company running the scheme to make claims for items he had not bought.
Eventually the driver received a cheque for £5,000, with £1,000 going to the third-party company that submitted the claim.
However, he said HMRC was investigating these payments and warned that rather than investigating each individual claim, hundreds of drivers may have to pay a fixed sum, irrespective of what they owe.
“Reading between the lines, some drivers have claimed for outrageous amounts of stuff,” he said. “The tax man told me that in the next five or six weeks there would be a letter stating how much we have to pay back. There are a lot of drivers involved in it.”
The RHA told CM it was concerned about the use of tax advisers and there was a case for the sector to be regulated. Policy director Jack Semple said: “In our work over the past 18 months, it’s been clear incorrect tax advice has been given, and not just in the haulage sector.
“It’s hit home in terms of the incorrect advice given to employers and employees. Drivers and employers have to be wary of who they are taking advice from.”
An HMRC spokesman said it would not comment on individual customers or agents, but that it did make further enquiries into repayment claims to ensure they were accurate:
“HMRC will recover tax from any customers, including drivers, who have received excessive refunds from HMRC,” he said.
“We recognise a number of our customers may use tax refund agents. They should check carefully about any fees they may be charged, and the small print of the agreement that they are signing.”
This article appeared in Commercial Motor magazine 1 June. Subscribe today.
