HMRC warns over surge in self-assessment tax scams – here’s how to spot them

HMRC has warned self-assessment taxpayers to be on the lookout for scam calls, texts and emails after receiving more than 130,000 reports in the past year.

With around 12million people expected to submit a self-assessment tax return before the 31 January 2024 deadline, the tax office has issued a warning that fraudsters will ‘prey on customers by impersonating HMRC’.

The tax office said it had received more than 130,000 reports about tax scams in the 12 months to September 2023, and had responded to 60,000 reports of phone scams alone.

Fake tax rebates have been the most popular among fraudsters with 58,000 reported scams in the past year. These can be hard to spot because there are some genuine firms which will offer to obtain a tax refund for you.

Tax scams: HMRC has warned self-assessment taxpayers to be on the lookout for scam calls

Other firms might submit inaccurate refund claims to HMRC on your behalf and charge a fee based on the size of the refund. If the claim is incorrect, HMRC might initially pay out but ask for it back later.

Other scams can include emails claiming to be from organisations like HMRC, which invite you to a click a link where you are asked to enter your card details. This information can then be used to steal money from your account.

HMRC has also sounded the alarm on scams that tell customers that they need to update their tax details or threaten immediate arrest for tax evasion.

Myrtle Lloyd, HMRC’s director general for customer services, said: ‘HMRC is reminding customers to be wary of approaches by fraudsters in the run up to the Self Assessment deadline. 

‘Criminals are great pretenders who try and dupe people by sending emails, phone calls and texts which mimic government messages to make them appear authentic.

‘Unexpected contacts like these should set alarm bells ringing, so take your time.’

Laura Suter of AJ Bell predicts even more taxpayers are at risk of falling for tax scams in the coming months.

‘The Government’s crackdown on tax allowances means many more people will be filing a tax return in the next few years – this offers up ripe pickings for scammers wanting to defraud people navigating the system for the first time. 

‘On top of that, people’s budgets being crushed in the cost-of-living crisis means that a text promising a tax rebate will be more appealing than ever – but could end in financial disaster.

‘Many of these people filing will be doing so for the first time ever, navigating a complicated system often without help. It means they are far more likely to fall prey to scammers who send a text asking for details or promising them a tax rebate. 

‘This is particularly the case for those filing close to the deadline and in a hurry – we’d expect to see a spike in scams around the 31 January deadline for filing online.’

How to spot an HMRC scam

If you get a text, email or call out of the blue that purports to be from HMRC, don’t respond directly.

You should contact HMRC directly using the details on the government website to check whether the sender is legitimate.

The tax office has published examples of HMRC scams it has spotted and urges customers to report every scam.

QR codes: HMRC sometimes uses QR codes in its letters but only to take customers to the gov.uk website, and never to a page where you have to input personal information.

Texts: HMRC does send texts to customers but they will never ask for personal or financial information.

Emails: Fraudsters can spoof genuine email addresses to make it appear genuine. Do not click on links to visit a website mentioned in a tax rebate email, open any attachments or disclose any personal or payment information.

Phone calls: HMRC says it is aware of an automated phone call scam which will tell you HMRC is filing a lawsuit against you. This is a scam and you should end the call immediately.

This post first appeared on Dailymail.co.uk