As the deadline for Self Assessment tax returns approaches on January 31st, 2025, countless individuals across the UK are preparing to navigate the complexities of filing their returns. Amid this heightened rush to meet the deadline, fraudsters are also gearing up, eager to take advantage of the increased online activity that comes with tax season.

HMRC is responsible for tax collection and enforcement in the UK and is sounding the alarm, urging taxpayers to remain alert and cautious against these infamous scams that aim to siphon away personal information and financial details.

It is crucial to be informed about the tactics employed by scammers to help safeguard your sensitive data as you tackle your tax obligations. Here are key points you should be aware of to protect yourself during this busy period:

Rise of Self Assessment scams

HMRC reports a staggering 16.7% increase in reported scams over the past year, with nearly 150,000 referrals of suspected fraudulent activity. Fake tax rebate claims are the most prevalent, constituting almost half of all reported scams (over 71,000). This rise highlights the urgency for taxpayers to be aware of the tactics scammers employ.

Scam tactics you should be aware of:

1. Refund promises

Scammers often try to entice you with the promise of a large tax refund. They might send emails, texts, or even call you, claiming you’re eligible for a significant payout. However, HMRC never contacts taxpayers directly to announce or request a refund through these channels.

These scams aim to lure you into clicking on links or providing personal information that can be used to steal your identity or access your bank accounts.

2. Urgent threats

Scammers create a sense of panic by threatening legal action, arrest, or even fines if you don’t pay a supposed tax debt immediately. They might use aggressive methods to demand immediate payment.

These threats are designed to pressure you into making quick decisions without thinking clearly. Scammers might try to trick you into making payments to fraudulent accounts.

3. Request for personal information

Legitimate organisations rarely ask for sensitive personal information through emails, texts, or phone calls. If any communication claiming to be from HMRC asks for your passwords, bank account details, National Insurance number, or other personal information, it’s a clear red flag.

Providing this information can give scammers access to your accounts, allowing them to steal your money or commit identity theft.

How to protect yourself from scams?

1. Think before you act

Don’t rush to respond to any communication claiming to be from HMRC. Take a moment to assess the situation calmly.

Ask yourself: Does the message seem urgent or threatening? Does it offer a refund that appears too good to be true? Is it asking for personal information that HMRC wouldn’t usually request?

2. Verify on GOV.UK

HMRC uses the official GOV.UK website for communication. If you’re unsure about the legitimacy of a message, visit the GOV.UK website directly to verify the information.

Important: Never click on links provided in suspicious emails or texts.

3. Strong passwords

Use strong and unique passwords for all your online accounts. This makes it much harder for scammers to access your accounts, even if they obtain some of your personal information.

Tip: Use a password manager to generate and securely store strong passwords.

4. Don't click on links

Suspicious emails and texts often contain links that lead to fake websites that steal your information. Avoid clicking on any links in messages that seem suspicious.

5. Report suspicious activity

If you receive a suspicious message, report it to HMRC immediately.

  • For emails: Forward the email to phishing@hmrc.gov.uk
  • For phone calls: Report the call to the GOV.UK website
  • For text messages: Forward the text message to 60599
How to take action against financial scams?
If you have any reason to believe that you may have fallen victim to a scam and inadvertently provided your financial information, it is imperative to act swiftly and decisively. Here’s how to navigate this situation effectively:

1. Reach out to your bank without delay

The first step is to get in touch with your bank as soon as possible. This prompt action is vital to prevent any further fraudulent transactions and to reduce potential financial losses.

2. Clearly explain your situation

Once you are connected with a bank representative, provide them with a detailed explanation of your concerns. Let them know that you suspect you have been targeted in a scam and that you have shared sensitive financial information with an unauthorised party.

3. Request to block unauthorised transactions

Your bank possesses the means to halt any unauthorised transactions that may occur on your account. Promptly requesting this action can help safeguard your funds.

4. Inquire about recovering stolen funds

Depending on the specific circumstances surrounding your case, your bank may have options available to assist you in recovering any funds that have been fraudulently taken from your account. Be aware, however, that recovery is not guaranteed and may depend on various factors.
Official channels for claiming tax refunds
If you are looking to claim a tax refund, it is essential to utilise the appropriate official channels to ensure that your request is handled securely and efficiently:

HMRC online account

The HMRC online account provides a safe and official platform to manage your tax information. You can easily submit requests for any tax refunds you may be entitled to through this account.

HMRC mobile app

For added convenience, the HMRC mobile app offers a secure way to oversee your tax matters and allows you to claim refunds directly from your mobile device while on the go.

Be wary of unsolicited offers

It is crucial to remain vigilant and sceptical of unsolicited communications regarding tax refunds. Reputable tax authorities, such as HMRC, will never reach out to you unexpectedly with offers for refunds. Always verify the source of any unsolicited proposal to protect yourself from potential scams.
Over to you

Tax season scams are a serious threat, but taxpayers can significantly reduce risk by being vigilant and taking proactive steps. Remember to scrutinise any communication claiming to be from HMRC carefully, never click on suspicious links, and report any suspicious activity immediately.

Consulting with a qualified accountant can provide valuable peace of mind if you’re unsure about any aspect of your tax return or potential scams. Accountants can help you navigate the complexities of Self Assessment and can provide expert advice on how to protect yourself from scams. Working with a trusted accountant ensures your tax affairs are handled professionally and securely, allowing you to focus on other aspects of your life.

Author

Rehan Javed

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