As part of our Release 3 Business Transformation changes in 2019, we introduced a new process for redirecting refunds for your clients.
In our old system, if intermediaries had the appropriate Authority to Act to receive customer refunds, they would load their own trust account against their client’s profile.
From 26 April 2019, we now record theintermediary's trust account for client refunds against their profile. The customer should then have their personal bank account attached to their own profile. The intermediary can then choose to redirect their clients’ refunds directly to that account using the Client maintenance option under the Tax preparer tab.
Processing client refunds in this way means that the intermediary trust account only needs to be updated in our system once, which can be done with your account manager. This also makes managing clients much easier, as the disbursement account link for the trust account will be automatically removed when the client is delinked. You, or your clients, can also remove the disbursement account in myIR as needed.If you hold a written authority to receive your client’s refunds, this can be easily managed under Refund redirect in Client maintenance as well.
This new system makes client refunds easier and more secure for both tax intermediaries and their clients. However, we’re aware that some intermediaries are still loading their own trust account against the client’s profile.
If you currently operate a trust account, please contact your account manager to add the disbursement account against your profile. They’ll also be able to assist with any questions you may have and can help you remove your trust account against any existing client profiles if needed.
It’s important to note that refund redirects should never be used to redirect Working for Families Tax Credits.