HMRC under fire for 'overly complex' tax refunds

The loan remuneration structure was considered above board for the years it was used until HMRC clamped down following the bankruptcy of Rangers FC, which had been operating a similar scheme.

This led to widespread action and the process was outlawed, but HMRC also applied the law to previous cases and pursued people who used a loan payment scheme as far back as 1999.

As a result of the Morse Review the loan charge now only applies to cases from 2010 onwards, with those who settled for years before this date entitled to a refund.   

Steve Packham, spokesperson for the Loan Charge Action Group, said: "It is clear that HMRC are failing to properly honour this and are making the process onerous, confusing and off-putting.

"They are making people jump through unnecessary hoops just to reclaim money they are legally due back, which is a disgrace."