Association of Tax Agents (ATA)

If you are planning on claiming your tax refund through an agent, be sure to use a company bonded by the Association of Tax Agents (ATA). If a company is not a bonded member of the ATA and goes out of business, you could lose your money!

The ATA was formed in 1998 to protect clients using tax refund companies against financial loss. To become a member of the ATA, each company has to satisfy strict entry criteria as determined by the ATA. The ATA is an independent governing body and was formed to provide 'claim security' to those wishing to use a tax refund company.

97% of travellers who work in the UK overpay their PAYE tax. Subject to conditions, the Inland Revenue will refund the overpayment of tax either after the end of the financial year or when you leave the UK. Over recent years a large number of tax agents have started up, offering to act on your behalf in claiming your tax refund from the Inland Revenue. The majority of these companies are not able to offer you any financial guarantee or peace of mind that your tax refund is secure.

In the past 4 years, several tax agents in the UK have ceased trading. These insolvencies were caused by one of two reasons:

• Intent to defraud clients by withholding their tax refund and closing the business.
• Charging unusually low commission rates, in a bid to generate business. This causes the company to lose revenue and face closure.

Since the ATA was formed, no bonded member has ceased trading. However, in the unlikely event of a company facing closure, the ATA will take over the processing of the refund application when the Inland Revenue has not yet paid out the rebate. You will not be charged anymore than was previously agreed with by the original Tax Agent Company.

In the situation whereby the Inland Revenue has already paid out on a claim and the Tax Agent Company has received the rebate, the ATA does not have any liability. The ATA is not responsible for another member company's action in this situation. If this is the case, the ATA will contact the Inland Revenue and determine the details of the payment.

For more information about the ATA visit www.associationoftaxagents.co.uk.