HM Revenue and Customs (HMRC) has issued a warning to workers over tax agency adverts that could land them in trouble.

The government department has urged those working from home to "always check" their eligibility before claiming a tax refund, highlighting the risks of being misled by adverts promising easy and quick tax rebates.

Failing to verify eligibility for a tax refund could lead to debts with HMRC, with individuals potentially losing thousands by trusting agencies.

On X, HMRC said: "Don't get caught out by ads promising quick tax refunds for working from home. Always check if you're eligible before making a claim. Avoid agent fees by claiming directly with HMRC."

In its 'Don't Get Caught Out' campaign, HMRC used the example of a worker who claimed a £4,000 work-related expense through an agency which charged him £1,600 in fees.

Subsequently, the worker was notified by HMRC that he was ineligible for the expenses claimed and now was solely responsible for repaying the full amount plus interest. Furthermore, the agency's 'third-party agreement' meant he couldn't reclaim the £1,600 fee, leaving him solely responsible for repaying HMRC.

When considering work-related refunds through an advert or agency, it's vital to bear in mind that there are numerous items that cannot be claimed as expenses. For example:

• Food you bring from home when travelling to a temporary workplace
• Work from home costs when you have an office base but choose not to work there
• Union fees
• Work expenses already covered by your employer
• Workwear that doesn't include a visible logo
• Uniform that has already been provided by an employer
• Work from home costs if your contact is part of a flexible working arrangement
• Travel and overnight expenses for commuting to your normal place of work
• Uniform washing costs when your employer has a laundry facility

Workers are also being advised to keep an eye out for warning signs with tax companies or agencies. For example, you should be cautious if you're never asked to provide receipts or other proof of expenses that are being claimed on your behalf.

If you think you've made a tax refund that you were not eligible for, you should contact HMRC as soon as possible as they can provide extra support to customers who need it.