Over a million tax scams: and tax credit renewal season sparks scam surge
Sarah Coles, Personal Finance Analyst with Hargreaves Lansdown, comments on the HMRC’s warning report, which warns of over a million tax scams: and tax credit renewal season sparks scam surge.
Sarah Coles says:
“Fraudsters hit us with over a million tax scams in the past year, and they’re poised to cash in on tax credit renewal season too. HMRC has issued a warning that as renewal packs hit the doormat, scammers will try to sneak through our defences on the back of them.
“In the 12 months to the end of April there were over 1.15 million scams reported to the taxman. Scams always surge during times when fraudsters know that people will have heard from the taxman, so are more likely to be taken in. It means we’re particularly vulnerable in June and July when tax credits are renewed.
“There are some common approaches. You might get a text, email or phone call out of the blue claiming to be from the taxman – or you may be contacted over WhatsApp. Almost half of these scams claim to be offering a tax rebate, and ask for personal details. They say this is so you can receive the money, whereas in reality it’s so they can clear out your account. Others demand payment, either in cash or in vouchers, claiming you’ve underpaid your tax and will be in serious trouble if you don’t make up the shortfall.
“If you get any contact at this point, aside from the renewal pack, it’s always safest to assume it’s a scam and instead of replying to it, contact HMRC using phone numbers on trusted documents. If someone calls pretending to be the taxman, don’t be afraid to hang up and call back later using a number you trust. If they contact you using WhatsApp, it’s definitely a scam, because HMRC doesn’t do this.
“There are some reasons why HMRC might get in touch. It publishes a list here. However, it will never ask for personal details or payment over the phone.
“Don’t let the scammers put you off actually completing your renewal and letting HMRC know about any changes in your circumstances. It’s the only way to avoid missing out on any money due to you, and avoiding the nightmare of overpayments and having to pay them back. You don’t have to declare furlough (and the resultant drop in working hours) though, because the government will assume you’re working your normal hours until the scheme closes.”
Kindly shared by Hargreaves Lansdown
Main photo courtesy of Pixabay
