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Whilst the Government invests billions of pounds in tax payers' money propping up the Banks it is refusing to pay out tax refunds claimed by workers in one of the industries hardest hit by the recession, leaving many struggling financially.

Many thousands of workers in the construction industry are entitled to claim tax refunds because they use their own vehicles travelling from site to site. These claims, which can vary from a few hundred to several thousand pounds, are submitted to the Revenue and would normally be settled in approximately 8/12 weeks. Not any more.

Tax consultancy Rift which specialises in making claims on behalf of construction workers throughout the UK, including Northern Ireland, reports that hundreds of their clients are being forced to wait between 8/12 months. Indeed, they have unsettled claims going back before January 2008.

Says Rift managing director, Jan Post: “Despite months of telephone calls, letters and formal complaints to the Revenue regarding individual cases we have received no satisfactory explanation for their sudden change in policy. Although the IR Charter (currently under review) states that refunds should be made within 20 days of receiving the request, 8/12 weeks was acceptable. However it seems that now the Revenue is attempting to hang onto our clients’ money for as long as possible and nobody has the authority to make them release it. Our clients are currently owed in excess of £1m and many are suffering severe financial hardship because money they were expecting has simply not materialised and shows no signs of doing so”

The standard excuse for non-payment is that a claim is being subject to a ‘security check’. Traditionally around 10% of claims would be subject to a check. Today it seems more like 100%. Said Post: “In the 10 years that Rift has been making claims we have not had a single case rejected by the Revenue, but they have informed me that most of our cases are now being security checked. No reason has been given.”

Rift clients are not alone. Other consultancies are also struggling to obtain refunds for their clients and the sums involved could run into many millions of pounds.

The Government has been keen to emphasise its efforts to minimise the effects of the recession on the ordinary tax payer – particularly those in the worst hit industries. Refusing to pay workers the refunds to which they are entitled makes their words seem rather hollow.


Further information from:

Jan Post
Rift Ltd. 01233 628648

Alice Spink
Windmill Communications. 01622 851330

This press release was distributed by ResponseSource Press Release Wire on behalf of Windmill Communications in the following categories: Personal Finance, Construction & Property, for more information visit