- Brooksdale specializes in securing PPI tax refunds for customers
- It charges customers 48% of the money returned for its services
- A meeting of creditors is held to discuss and vote on a bankruptcy
Controversial tax credit agent Brooksdale is preparing for liquidation, leaving questions for the clients whose tax refunds are currently in hand.
The company will hold a virtual meeting of creditors today, April 12, to discuss and vote on a possible creditor voluntary liquidation. This is Money has learned.
These agreements occur when a company cannot pay its debts, and enough of the company’s shareholders agree that a creditors’ voluntary liquidation should take place.
It represents the beginning of the company’s wind-down process, which will affect those waiting for rebate checks that Brooksdale will send them.
Brooksdale’s activities include seeking tax relief from His Majesty’s Revenue and Customs on behalf of clients, but it charges them a 48% commission
Brooksdale’s work involves applying for tax relief from His Majesty’s Revenue and Customs on behalf of people, and charging recipients a fee of up to 48 percent of the amount owed. It works on a no-win, no-fee basis.
It specializes in securing tax refunds for those who received compensation when they were mis-sold payment protection insurance, payday loans and packaged bank accounts, and then wrongly taxed on the original payout.
It also handles applications for marriage tax exemption, uniform allowance and work-from-home allowance.
Those owed tax refunds can claim directly and free of charge from HMRC by completing the necessary forms, which are available on the government’s website.
Brooksdale has previously stated to customers that tax credits, once obtained, will be paid within 12 weeks.
However, some wait much longer and This is Money has previously reported on a Brooksdale customer who waited more than a year for the refund Brooksdale secured on their behalf.
Brooksdale has proposed that Manchester-based company Fortis Insolvency handle the liquidation, although it will not be formally appointed unless creditors vote at the meeting to approve the appointment.
It is unclear whether all customers whose money is currently in Brooksdale’s hands are counted among the company’s creditors.
This is Money understands that Brooksdale has provided Fortis with a list of creditor names and addresses, which also includes some customers with tax credits.
The people on that list received letters with information about today’s meeting.
However, every creditor of Brooksdale has the right to attend the virtual meeting and vote regardless of whether he or she has received a letter.
a A notice was placed in The Gazette about the Brooksdale meeting, but it is not clear at what time the meeting will take place.
Brooksdale is one of around 200 tax relief agents in Britain, collectively used by around 500,000 taxpayers each year.
The business model has proven controversial due to the high fees charged for a service that customers can perform themselves for free.
There are also questions about how the companies obtain customer data and whether customers are fully aware of what they are signing up for.
Some customers report receiving a letter from a tax relief company stating that they are requesting a refund from HMRC on their behalf, without realizing that they have given them the authority to do so.
This is Money contacted Fortis Insolvency and a representative said the company had not been appointed as liquidators and would only comment if they were appointed.
Brooksdale could not be reached for comment.