Invalid HMRC claim that could see you owe thousands of pounds

HMRC could contact you if you make one wrong claim and it could cost you thousands

Making an accidental claim related to your work experiences could result in you owing thousands of pounds to HM Revenue and Customs (HMRC).

The government department is campaigning to make more workers aware of illegitimate agencies claiming to help workers claim large amounts of money from HMRC in return for a cut. However, HMRC has said workers should first check they're eligible to make such claims as they could be at risk of making an invalid and expensive claim.

It comes as the government department carries on with its 'Don't Get Caught Out' campaign, which aims to keep workers out of tax trouble. As part of this campaign, the campaign used the example of a hypothetical worker called MIke, whose story is based on real-life events.

Mike made use of a refund company's services, which falsely assured him he could retrieve £4,000 in work expenses. After the agency claimed a £1,600 fee, Mike was left with the balance only to be later approached by HMRC.

They informed him that his claims weren't valid, resulting in Mike having to repay the entire £4,000 plus added interest. Fortunately, there is a relatively easy way to avoid falling into a similar situation...

Who's eligible for a tax refund claim?

Verifying your eligibility for a tax refund is free and relatively quick, something you should always do even if you choose to use an agent or a tax refund company. You may also need to provide HMRC with evidence of your eligibility to make the claim, such as receipts for expenses, so make sure you have these ready before submitting a claim.

A quick check can be done via GOV.UK here. This check allows you to check if you're eligible for a ax refund for a variety of reasons, including:

• interest from savings or payment protection insurance (PPI)
• a redundancy payment
• pay from a job
• a pension
• a Self Assessment tax return
• income from a life or pension annuity
• UK income if you live abroad
• foreign income
• job expenses such as working from home, fuel, work clothing or tools
• UK income earned before leaving the UK

If you believe you've made an ineligible tax refund, you should contact HMRC as soon as possible as they can offer additional support to customers who need it. Further details on what claims can be made can be found on the Don't Get Caught Out campaign website here.