Sunday Mercury: GOLDEN HAND CUFS

BY BEN GOLDBY

EXCLUSIVE Now lags are told how to cash in by claiming back thousands in tax

CONVICTED crooks forced to quit their jobs to serve time in prison are claiming bumper tax refunds to soften the blow.

A loophole in the law means any criminals, including robbers, rapists and murderers, who were working before they were imprisoned, can claim back tax on their earnings.

Several lags have already exploited the extraordinary rules, cashing in thousands of pounds in the process.

But campaigners against unfair levies said the loophole is hitting the pockets of honest workers, who are already paying for the lags to do time.

Exploit

Fiona McEvoy, from the Taxpayers' Alliance, said: "It is quite unbelievable that prisoners are able to exploit the system whilst ordinary taxpayers receive little reprieve from the mounting burden of taxation. These people should be paying their debt to society, rather than seeking to reimburse themselves at its cost".

One inmate has now published advice in lags' magazine Inside Time, from his cell at Littlehey Prison, to tell other cons how they can profit from their incarceration.

He wrote: "I found out to my good fortune that because I was in fulltime employment up until entering custody, I was owed money from the Inland Revenue.

"I contacted them, stating when my last day of employment was and that I would like to bring my tax affairs up to date, and some time after received a repayment of £1,100.

"As far as I can gather, if you are in a job which earns you overtime or benefits in kind, such as a company car or healthcare, your tax is deducted on the assumption that it will be over a full tax year. The onus is on you to claim it back - unlike if you owe them.

"I have helped numerous inmates claim such monies, which only costs the price of a stamp.

"There is no certainty you will be owed money but it is definitely worth a try. Applications should be made to the tax office dealing with your former employer, not necessarily the one local to your home address.

"I would like to think that anyone owed money would chance a stamp and enjoy a possible windfall as a result."

A spokeswoman for HM Revenue & Customs last night confirmed that lags could claim back their taxes and urged anyone who thought they were owed cash to contact them.

She said: "Any UK taxpayer who has paid too much tax is eligible to apply for a repayment. If anyone thinks they have paid too much tax, they should contact their local tax office."

A string of Midland criminals are in line for big refunds under the extraordinary rules.

Addicts

Meanwhile figures revealed this week have shown a further increase in the compensation culture at Midland prisons.

Drug-addicts forced to go "cold turkey" at Shrewsbury Prison received compensation payments totalling £38,071 in the past year, according to government statistics.

The Sunday Mercury revealed earlier this month how prisoners were told how to rake in extra cash by being allowed to open high street bank accounts to rake in interest payments.