HMRC warns of 17% rise in tax scams: How to stay safe this self-assessment tax season
As the self-assessment deadline approaches, HMRC is urging taxpayers to remain vigilant against a surge in tax scams targeting their personal and financial information. Over the past year, nearly 145,000 tax scams were attempted and reported to HMRC, marking a concerning 16.7% increase in tax scams compared to the previous year.
The rise in fraudulent tax scam activity highlights the importance of staying alert, particularly as criminals continue to devise new ways to impersonate HMRC and deceive taxpayers.
How are HMRC tax scams are evolving?
Fraudsters often pretend to be HMRC representatives, using convincing tactics to steal sensitive information or money. Common schemes include:
- Fake tax refund offers: Scammers lure victims with promises of refunds, often via email, text messages, or phone calls.
- Threats of unpaid tax: Criminals claim you owe unpaid taxes and may face legal action or arrest if immediate payment is not made.
Shockingly, around half of all scam reports received by HMRC involved fraudulent rebate claims, further demonstrating how frequently criminals exploit the promise of a financial windfall.
What are the key red flags to spotting tax scams?
HMRC has repeatedly stated it will never:
- Contact taxpayers via text, email, or phone to offer tax refunds or demand payments.
- Leave voicemails threatening legal action or arrest.
- Ask for personal or financial details via unsolicited messages.
These methods are hallmarks of fraud. Taxpayers should be wary of any unexpected communication claiming to be from HMRC and offering refunds or demanding immediate action.
How do you safely claim a tax refund?
Legitimate tax refunds can only be claimed through secure methods:
- Official HMRC Online Account: Log into your account via the official HMRC website (gov.uk).
- HMRC Mobile App: Use the free HMRC app for safe and convenient access to your tax information.
Avoid interacting with suspicious messages, as clicking on links, downloading attachments, or replying can lead to malware infections or stolen data.
What steps should you take to report HMRC scams?
HMRC is actively working to tackle fraud and urges taxpayers to report any suspicious activity. If you encounter a potential scam, here’s what you should do:
- Forward emails: Send suspicious emails to phishing@hmrc.gov.uk.
- Report calls: Log fraudulent phone calls directly via the HMRC website on gov.uk.
- Forward scam texts: Text suspicious messages to 60599.
By reporting scams, you help HMRC and law enforcement agencies track criminal activity and protect others from falling victim.
Why is the rise in HMRC tax scams concerning?
The 17% rise in reported HMRC scams over the past year reflects how criminals are capitalising on the anxiety and urgency often associated with tax deadlines. Scams targeting taxpayers not only lead to financial losses but can also cause significant emotional distress.
With self-assessment season in full swing, the stakes are even higher. Taxpayers that are juggling submission deadlines may be more vulnerable to fraudulent schemes, making it crucial to stay informed and cautious.
How to stay safe this Self-Assessment tax season
The rise in HMRC tax scams serves as a stark reminder of the need for vigilance. As fraudsters become increasingly sophisticated, protecting yourself requires a proactive approach:
- Be cautious of unsolicited messages or calls claiming to be from HMRC.
- Use only official HMRC platforms to manage your taxes.
- Report suspicious activity promptly to help combat fraud.
- If you are an RPGCC client, contact us before you take any action. HMRC will never ask you to do anything immediately, there is always time to seek professional reassurance.
With these precautions, you can navigate the self-assessment season confidently and avoid the pitfalls of HMRC scams. Stay safe, and let’s work together to fight fraud.
If you would like to speak to a member of our tax team regarding self-assessment, or indeed any area of tax compliance, personal or business, please contact us or telephone us on 020 7870 9050 a member of our team is always just a call or a click away.
