Deed of Assignment
Make Sure You Are Not Signing A Deed of Assignment
What is the Deed of Assignment
It has become more and more apparent that many Tax Agents are tricking their clients into signing a Deed of Assignment.
A deed of assignment is legally binding and HMRC have no option but to issue the refund to the person (or company) to whom it has been assigned. The assignment can only be revoked if both parties agree i.e. you, the taxpayer, and the person to whom you assigned the refund.
The Problem
Refunds Being Retained
Money For Nothing
This becomes a problem if you were to change accountant for example. Whilst you may have been happy for the refund to be made to your current accountant, obviously should you decide to change, the refund will still be made to the old company with whom you have set up the deed. That company can withhold a proportion of the refund even though they have not completed any work.
Changes in Circumstances
Additionally, if your circumstances were to change and say you became employed, any tax refunds would still be issued to the company who has the deed of assignment. You will not receive the money!
Check The Small Print
Hidden in The Terms and Conditions
Such a “deed” may be hidden in the terms and conditions when someone signs up to an agent or tax advisor. Therefore, you may be not aware you have signed up to such an agreement.
This is potentially a big problem particularly as people could be caught out by such practices!
SO BEWARE OF WHAT YOU ARE SIGNING AND ASK IF YOU ARE CONCERNED!