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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3652
Experience:  Solicitors 2 years plus PQE
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Ive been approached by a company called Cost Care, they offer

Customer Question

I've been approached by a company called Cost Care, they offer to get capital allowances back for almost all web development. It sounds too good to be true, do they have a history of getting claims accepted that then get turned over on appeal but after you have paid the commission?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Effectively the company wants you to pay a fee up front regardless of success? Is the fee refundable for non success?
Kind regards
AJ
Customer: replied 2 years ago.

Hi AJ

No, they say the fees are payable 30 days after confirmation of the credit. I'm just worried that the Revenue will have a claw-back system that comes into operation after the commission has been paid.

Regards

Dave

Expert:  Alex J. replied 2 years ago.
Hi
Thank you.
One way to protect your self is to demand an indemnity from the company for repayment of the commission if the allowance is clawed back. The indemnity will still require you to demand the money from the company and potentially sue them if they do not pay.
Generally with these schemes if they seem to good to be true then normally they are. It will only take one claim to be done badly and HMRC will use this as the basis of challenging all of them.
Did you have a specific question about this company I can assist with?
Kind regards
AJ
Customer: replied 2 years ago.

AJ, that's my thought entirely, if it's 'too good to be true there must be an issue'. I don't want the hassle of trying to recoup money from them especially if I have to deal with the Revenue at the same time, plus the cash-flow implications could be very bad.

I wanted to know if there was a record of the dealings they have had with the Revenue? Is there an independent history of companies being happy or dissatisfied etc?

Dave

Expert:  Alex J. replied 2 years ago.
Hi
Thank you.
I will have to do some research.
If there is any specific dissatisfaction it may be detailed in Historic OFT reports or with Financial Conduct Authority.
I will revert to you in the morning.
Kind regards
AJ
Customer: replied 2 years ago.

Great, I look forward to hearing from you

Dave

Expert:  Alex J. replied 2 years ago.
Good Morning,
I have done some research.
I cannot find any consumer action groups, or historic complaints on Costcare.
That said the one concern I have is that they do not seem to be regulated by any official body. They state they are financial consultants but there are no statements saying they are regulated by the FCA or other regulatory organisation. This means that there really is no means of complaining about them as they are unregulated.
At the very least if you are going to go ahead and use them, I would check whether they have professional indemnity insurance to cover you if they provide the service negligently. Given the inherent lack of information and lack of regulator, I would be reluctant to use them. You would be better off asking a qualified accountant to assist you, because at least they are regulated by a professional standard.
I look forward to hearing from you.
Kind regards
AJ
Alex J. and other Law Specialists are ready to help you
Customer: replied 2 years ago.

AJ, thanks for your answer, the point about lack of regulation is a good one. I think that's the final thing that means I won't spend any more time on this.


 


Regards


 


Dave

Expert:  Alex J. replied 2 years ago.
Hi,

No problem.

It may be worth at least asking them if they are regulated and if they have insurance.

The other point to bare in mind is you really do not want to start having HMRC sniffing around your affairs unnecessarily which could potentially lead to other investigations.

If I can be of any further assistance please do not hesitate to contact me.

Kind regards

AJ