Save hundreds by cutting out internet middle-men and doing admin tasks yourself

YOU could save hundreds of pounds by cutting out internet middle-men and doing admin tasks yourself.

Sneaky websites and claims firms are charging big money for basic jobs that take them minutes to perform.

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And with more hard-up families trying to claw back every penny owed to them, many could fall foul of middle-men making a quick buck with ads on Google and Facebook.

Jenny Ross, Which? money editor, told Sun Money: “As the cost-of- living crisis intensifies, more people will go online looking for help.

“Our research found there is a risk they could end up accidentally dealing with rip-off claims companies or copycat sites that want to grab a slice of their cash.”

Here’s what to look out for.

INCOME TAX INVADERS

OWED an income tax rebate? Don’t use a third-party firm who want half of your refund to do it for you.

Earlier this year, consumer group Which? counted 208 companies with “tax reclaim”, “tax refund”, “tax claim” or “tax rebate” in their names.

One in five people say they have been contacted by one, heard of one by word of mouth or found one online.

A letter sent by the firm Rebate Gateway used HMRC’s recognisable teal colour and similar fonts and phrases.

It said it tries to ensure clients know who they are and they will review their marketing.

MARRIAGE TAX MEDDLERS

THE marriage allowance — which lets a spouse transfer ten per cent of their tax-free personal allowance to their higher-earning partner — is a wonderful support to cash-strapped couples.

But not if greedy tax rebate firms nab more than 80 per cent of their yearly allowance of up to £252, which can be backdated four years to up to £1,242 (see case study).

Worryingly, some ask customers to sign legally binding contracts called a “deed of assignment” giving the tax refund firm permission to make a rebate claim on their behalf — and this could stay in place for future claims, regardless of whether the collector does further work for them.

CAUSING CONFUSION

MANY holidaymakers are confused about what new documents they need to travel after Brexit. And copycat firms are exploiting this confusion by urging them to buy unnecessary paperwork.

For example, only those with an old-fashioned paper licence need to apply for the International Driving Permit (IDP) to drive in some European countries, costing £5.50 from the Post Office.

But the International Drivers Association implies everyone needs a printed IDP to drive in Spain, which it will sell for $69.

A spokesman said: “We are in the process of updating our content, especially now that most borders are open.”

And he added that customers who enquired on its chat service and by email were told about the Post Office selling IDPs.

Which? has also found rip-off sites selling GHICs, the new free Global Health Insurance Cards allowing free or subsidised medical care in Europe, plus visas for Dubai, which are free on arrival, and ESTAs for travel to the US, which should cost $14 from the US government.

• TIP: For info on GHICs, driving abroad and visas for other countries, stickto the UK’s gov.uk and NHS websites, and follow links from there.

FIGHT FOR FLIGHT CASH

PASSENGERS can get compensation of at least £220 if a flight was delayed more than three hours or cancelled at short notice.

But claims management firms are keen to do this for 30 per cent of your refund — and they don’t always make it clear you can do it yourself.

• TIP: In the first instance, passengers should contact their airline for a refund. You can do this through the free website Resolver. Only if you’re not getting anywhere should you use a reputable solicitors’ firm — such as Bott and Co — on a no-win-no-fee basis to claim your cash, but be prepared to pay a fee of at least £50.

‘PAYOUT WAS SLAP IN FACE’

GRANDMOTHER Jackie Badger felt like she’d been “punched in the face” when a claims firm took 82 per cent of her £252 marriage allowance.

The admin worker, from Retford, Notts, spotted a Facebook ad from Total Tax Claims and contacted the firm, as she felt she wouldn’t have time to claim the money directly from HMRC.

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Jackie, 60, said: “I saw the ad and wondered if we’d be entitled to the rebate, as my husband Harry is a retired service engineer and I work full-time, so he could transfer his allowance to me.

“I thought commission would be about 25 per cent. I didn’t read the terms and conditions.

“I never imagined anyone would take more than that. When I rang, they said I’d be getting £45. I was shocked and asked how come it was so low.

“They said, ‘If you’d read the terms and conditions, our rates are in there’. But I never thought they’d be so high. It’s a big chunk.

“It’s come as a punch in the face and a big disappointment. I hope it doesn’t happen to anyone else.”

Total Tax Claims’ fees are 42 per cent inclusive of all charges, as well as a £100 admin fee.

The firm told The Sun: “When you compare a customer’s potential savings against the one-time fee we charge initially, the fee structure is not as significant as it would first appear.

“The marriage allowance will often prove very beneficial to customers overall.”

It claimed its fees were “competitive”, said there was “a significant cost” to online advertising and pointed out that Jackie had agreed to its terms and conditions.

WOULD YOU CREDIT IT – APR OF 1,721%

HARD-UP families are being targeted with misleading adverts for loans with sky-high interest rates on social media.

A Sun Money investigation found sponsored posts on Facebook promoting loans with rates as high as 1,721 per cent.

Several promised cash within minutes or on the same day, and some only displayed the potential sky-high rates in the small print.

The adverts appeared after using search terms on the platform such as “Universal Credit”, “debt help” and “borrow money”.

One ad for a credit broker promised cash sent in 15 minutes and a representative APR of 49.9 per cent.

Small print revealed the maximum rate of 1,721 per cent.

APR stands for annual percentage rate and is used to calculate the amount of interest you’ll pay on top of the original amount you borrowed.

Borrowing £100 for 12 months at this rate would mean repaying interest of £1,621.04 – more than 16 times the original amount borrowed.

Another ad promised money in your account today. Representative APR that was not shown in the ad was 505.7 per cent.

Representative APR means at least 51 per cent of customers get the advertised rate if accepted.

Borrowing £100 for 12 months, you would pay interest of £413.25, more than four times the original sum.

Facebook has now removed the ads for violating its guidelines.
High-cost credit is where rates and other costs are far higher than standard borrowing agreements.

It is used by nearly three million people, says the Financial Conduct Authority (FCA). Many are on low incomes and have low credit scores, and are excluded from mainstream lending – meaning those who can least afford it are paying more to borrow.

The FCA has cracked down on high-cost credit, including doorstep lending, rent-to-own, overdrafts and payday lending after The Sun’s Stop The Credit Rip-Off campaign.

It comes as millions of households face rocketing living costs and there are fears that many will have to borrow just to get by.

Sue Anderson at debt charity Stepchange said: “Promoting speed and ease of access to high-cost credit trivialises it, and risks causing hasty decision-making that makes financial difficulty worse.

“The lending in these ads might be regulated, but the sky-high APRs illustrate a terribly high risk of harm.”

This post first appeared on thesun.co.uk