Protect Yourself from HMRC Tax Scams – What to Avoid

Every year, HMRC receives around a million reports from the public about HMRC tax scams including letters, calls, texts or emails. These tax scams are becoming increasingly sophisticated, with fraudsters finding new ways to trick people into sharing sensitive information. In this blog, we’ll look at common tax scams, how to check if the communication is genuine and what to do if you’re targeted.

How do I know if a message from HMRC is genuine?

HMRC (HM Revenue & Customs) will often contact you regarding filing a return or issuing a tax refund. However, scammers have become very skilled at mimicking official communications by using similar language and even recreating parts of the HMRC website.

Here are a few key signs that can help you identify genuine HMRC communications:

•   HMRC won’t ask for personal information via email or text: HMRC will never ask for your bank account details, passwords or other personal information via email or text. If you receive such a request, it’s almost certainly a scam.
•   Official correspondence format: Authentic HMRC letters and emails use correct grammar and punctuation, often including your taxpayer reference number. Scams typically have typos or inconsistent formatting.
•   Check the sender’s email address: Fraudulent emails often come from addresses that look official but contain oddities, such as extra characters or unfamiliar domains. Always double-check the email address.
•   HMRC doesn’t threaten legal action via text or email: If the message includes threats of legal action or immediate fines unless you respond, it’s likely fraudulent. HMRC will never ask for payments or threaten arrests over text or email.

If you’re unsure whether a communication is genuine, it’s always best to log into your HMRC account directly via their official website or call them using the contact information provided on GOV.UK.

What HMRC tax scams are going around?

Scammers are constantly updating their tactics to catch people off guard. Here are several HMRC tax scams you should be aware of:

1. 1. Phishing Emails and Texts These emails or texts often claim you’re owed a tax refund and ask you to click on a link that takes you to a fake website. The goal is to collect your personal and financial information, such as bank details or passwords.
   2. Fake HMRC Phone Calls Scammers impersonate HMRC officers, calling people and telling them they owe tax. These calls often involve threats of legal action or imprisonment unless an immediate payment is made. The fraudsters may ask for payment through bank transfers or cryptocurrency, which should be a red flag.
   3. WhatsApp and Social Media Messages HMRC tax scams often use social media platforms, including WhatsApp. These messages promise tax refunds or warn of unpaid taxes and will often ask for personal information or download malicious attachments. HMRC does not use social media to contact taxpayers about refunds or debts.
   4. Suspicious Letters In rarer cases, scammers send physical letters similar to official HMRC correspondence. These letters typically demand immediate payment for outstanding tax and may direct you to fraudulent websites or phone numbers.
   5. Gift Card or Voucher Payment Requests HMRC will never ask for payment in the form of gift cards, vouchers or prepaid credit cards. If anyone claiming to be from HMRC requests this, it’s a scam. Scammers often use these payment methods because they are difficult to trace.

• Fake HMRC Investigations Letters pretending you are the subject of a HMRC investigation are becoming more common. They will ask you to send your business books and records (including bank statements) which the fraudsters can use to access your bank accounts.

Will HMRC ever text me about a tax refund?

As mentioned, HMRC will sometimes contact people via text message, especially around tax season or refund times. While HMRC does send text messages in some cases, they will not:

•   Ask for personal or financial information via text.
•   Send links for you to follow to claim refunds.

If you receive a text claiming you are due a refund, proceed cautiously. Do not reply or click on any links. Instead, verify the claim by visiting HMRC’s official website or logging into your personal tax account. If you’re ever in doubt, contact HMRC directly to verify.

• What to do if you’ve been targeted by a scam

If you suspect you’ve received a scam communication or have fallen victim to an HMRC tax scam, act quickly to protect your information:

•   Do not engage with the scammer: Avoid responding to suspicious emails, calls, or texts.
•   Report the scam: Forward phishing emails to HMRC at phishing@hmrc.gov.uk and send scam texts to 60599. This helps HMRC track ongoing scams and protect others.
•   Change your passwords: If you have shared personal details, immediately update your passwords, especially for sensitive accounts like email and online banking.
•   Contact your bank: If you’ve shared financial information, inform your bank so they can monitor your account for fraudulent activity.

• Check with your accountant

Conclusion

Being aware of these scams and knowing how HMRC communicates will help keep your information safe. Always stay cautious; if something doesn’t feel right, take a step back and check with HMRC before sharing personal or financial details.

360, Chartered Accountants can help with a wide range of tax services, including compliance and HMRC investigations.

For more information call us at 01482 427360, or fill out an enquiry form online.