Fraudsters posing as the tax office often target self-assessment customers in the run-up to important deadlines. Tuesday 31 October is the deadline for paper tax returns and the online tax return deadline is 31 January.
With around 12 million people expected to submit a tax return for 2022-23, Which? reveals what scams you should be aware of and how you can avoid becoming a victim.
Four common scams to look out for
HMRC received more than 130,000 reports about tax scams in the 12 months to September 2023, of which 58,000 were offering fake tax rebates.
The following are common methods fraudsters use to trick you into parting with personal details and cash.
1. Bogus calls and texts
In the 12 months to September 2023, HMRC responded to 60,000 reports of phone scams.
Fraudsters have been known to call self-assessment customers posing as someone from the tax office and threatening customers with lawsuits and arrests, as well as demanding outstanding tax to be paid. It usually takes the form of an automated voicemail.
Customers should also watch out for fake text messages that make similar threats or offer a tax refund, asking you to click on a link. However, this will usually send you to a website that will harvest your personal details or spread malware.
Fraudsters may use number spoofing so 'HMRC' is displayed as the sender, making it sometimes difficult to spot the scam from the genuine article.
2. Phishing emails
Similar to scam text messages, phishing emails will often spoof a genuine address or the ‘display name’ to make it more believable.
Again, there will usually be a link to a website that will try to take your personal details or pressure you to send them money.
3. Imposter websites
In the last year, the tax office has taken down 25,000 malicious web pages - more than double the amount it removed in the 12 months to August 2022.
Fake websites designed to make people pay for services that should be free or low cost – for example charging to connect people to free HMRC phone helplines – are another common scam to look out for.
4. Other HMRC scams
Scammers have in the past used social media and WhatsApp to ask customers for payments. HMRC would never contact you in this way, and would never request this kind of payment.
There have also been incidents of fraudsters sending customers fake QR codes. The tax office does use QR codes for payments on your mobile, but this will appear when you log into your personal tax account on a computer. If, however, you're sent a QR code via text or email, it’s a scam.
Find out more:Red flags to watch out for
Here are the warning signs that someone could be trying to scam you.
Unexpected call
It might look like HMRC on the line, but it could be a criminal. That's because fraudsters often use number spoofing to make the caller ID appear genuine.
If the call is unexpected and you're unsure in any way about who is calling, it’s best to hang up and ring back on the number shown on any official correspondence or listed on the government website.
Request for personal information
HMRC will never contact you asking for any details to confirm your identity. They already know who you are and contact you directly - why would they need to check?
While they do send genuine texts and emails to customers, the tax office will never ask for your bank account details or personal information including your Government Gateway login details. You will also never receive a message about eligibility for a tax rebate or refund.
Pressure or threats
Fraudsters may pressure you to hand over personal information or urgently transfer cash to them. Be on your guard if this happens and don't be afraid to challenge them.
Better to end the call and confirm with the tax office afterwards whether the request is real.
What to do if you spot a scam
Reporting a suspected scam to HMRC will hopefully stop other people becoming victims. You can do this in the following ways:
What to do if you fall for a scam
If you have been duped into sending money to a scammer's account, get in touch with your bank right away.
Banks that have signed up to the voluntary Authorised Push Payment Scam Code have to take a number of steps to protect and reimburse customers who are victims of this kind of bank transfer fraud.
Submit your tax return with Which?
You can declare income from a range of sources, and even use the tool to submit your return directly to HMRC once you're satisfied that everything's been included.
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