- Over 170,000 scam referrals were reported to HMRC in the 12 months to the end of July (Source: Scams warning as Self Assessment customers targeted – GOV.UK)
- Almost 50,000 of those reported, or more than a quarter (28%), involved fake tax refund claims
- Last year saw 11.5 million taxpayers file self-assessment tax returns, with many likely doing so for the first time
- HMRC is urging people to be alert for scams and report dodgy communications
Laura Suter, director of personal finance at AJ Bell, comments:
“Though many people will typically associate filing their self-assessment tax returns with the new year and 31 January deadline, there will also be lots of people already thinking about their tax return and filing early. With the deadline creeping closer towards the end of the year, HMRC has confirmed that over a quarter of the 170,000 plus scam reports it received in the last year were fake refund and rebate claims.
“HMRC saw 11.5 million taxpayers file a self-assessment tax return by the 31 January deadline for the 2023/24 tax year, with rising interest rates, reduced allowances and frozen tax thresholds combining to force more people into the tax return trap. This was broadly in line with the previous year, which saw a record-breaking number of people file their tax returns by the January deadline.
“Ahead of another crucial Budget for Reeves and Starmer which will likely see the tax burden increase again in some form, HMRC has issued a warning for taxpayers to be on the lookout for scam activity.”
Tax refund scams make up more than a quarter of all referrals
“While HMRC reported a 12% drop in the total number of scam referrals compared with the same period a year ago, there are still loads of tax-related scams out there – particularly those involving fake tax refunds. HMRC’s chief security officer Kelly Paterson urged individuals filing their tax returns to be vigilant when it comes to suspicious communications claiming to be from the Revenue.
“Scammers prey on people up against the 31 January deadline as well as those who file well ahead of time. There’s good reason to file early, as this can put you first in line for a refund and also means you are less likely to be tricked by scammers targeting people closer to the deadline who are rushing and more susceptible to pressure tactics. But remember that if you are due anything, HMRC will not offer this by text message or email. You should claim any refund due using your online HMRC account or the official HMRC app.
“This period is also the ideal time for a phishing mission to try and intercept personal data including bank details from people who might not be used to the self-assessment system and how HMRC communicates with taxpayers.”
How to spot a scam
Be alert to scams and the tricks fraudsters use to catch us all out. Examples include threatening, often automated, voicemails asking for personal information, or suspicious emails and text messages offering you a refund.
HMRC has confirmed it will not ask for personal information or offer refunds by text message and emails and has urged taxpayers to report any communications they received to prevent others being targeted.
If you receive a communication that doesn’t look right, you should check government scams advice and report it directly to HMRC. Emails can be forwarded to phishing@hmrc.gov.uk and texts claiming to be from HMRC to 60599.
