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Cash row over tax rebate deal

12th September 2002
Page 8
Page 8, 12th September 2002 — Cash row over tax rebate deal
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Which of the following most accurately describes the problem?

• A Birmingham-based Continental driver has been left over £2,000 out of pocket by a financial consultant who was helping him claim a tax rebate. Rob Olorenshaw, who drives for Midlands firm Chambers and Cook. applied for the rebate after seeing adverts saying it was possible for drivers who spent a certain period of time outside the UK to claim back money from the Inland Revenue (Ill). Olorenshaw says the adverts, placed by Isle of right tax consultant Howard Derham, promised to obtain the rebate for such drivers, less a 10% fee for himself.

After two years of waiting Olorenshaw eventually received a letter from the IR saying that he was entitled to a rebate for four tax years—£12,509.26 in all. He had agreed that the money would come to him via Derham, less the 10% fee. However, when the cheque turned up in March this year he was angered to find that it was for only £9,000; in effect a deduction of almost 30% had been made on the money. Derham's agreed deduction of 10% equated to £1,250; Instead he had deducted over £3,500.

Derham admitted his mistake in a letter to Olorenshaw dated 19 June and promised to pay back the outstanding sum of £2,300 as soon as possible.

But Olorenshaw says lie has heard nothing since then and claims that Derham is refusing to return his phone calls or faxes. He adds: "I trusted this man and I thought that we had a good working relationship. I feel really miffed that people can do this."

In a letter to ad Derltain states that without him Olorenshaw would have received nothing and that he went "out on a line for him. He says that he may now go to court in order to claim more than the 10% fee, lie adds: -Had Mr Olorendiaw not behaved the way he has over this it may well have been settled by now but all he has done is enforce my stubborn streak."