Every year, as the January Self Assessment deadline gets closer, fraudsters step up their efforts to impersonate HMRC. Fake refund texts, threatening phone calls and convincing looking emails are designed to catch people when they are busy, distracted or worried about their tax affairs.
Business owners are a particular target. You deal with HMRC and Companies House regularly, you are used to receiving messages about deadlines and payments, and you often have access to business bank accounts. That makes a well timed scam message more believable.
This post explains the most common tax scams, the warning signs to look out for and what to do if you think you have been targeted.
The most common tax scams
Fake refund messages. A text or email tells you that you are owed a tax refund and asks you to click a link to claim it. The link leads to a fake website designed to capture your personal and bank details.
Threatening phone calls. A caller, or an automated message, claims you owe tax and that you will be arrested or taken to court unless you pay immediately. Some scammers even spoof real HMRC phone numbers.
Fake penalty or deadline notices. Emails claiming you have missed a filing deadline or owe a penalty, with a link to pay. These often copy HMRC’s branding very closely.
Requests to “verify” your details. Messages asking you to confirm your Government Gateway or One Login details, your National Insurance number or your bank information.
Companies House and filing scams. With identity verification now compulsory for company directors, some fraudsters are sending messages that claim to be from Companies House and ask for payment or personal information to “complete” the process.
The warning signs
Scam messages often share a few tell tale features.
They create urgency. Threats of arrest, legal action or a deadline that expires today are designed to make you act before you think.
They promise money. A refund you were not expecting is one of the most common hooks.
They ask for details by text or email. HMRC will not ask you to share personal or financial information in this way.
They ask for unusual payment methods. Genuine tax bills are never paid with gift cards, cryptocurrency or a transfer to a personal bank account.
They contain small errors. Odd spelling, a strange sender address or a link that does not go to a GOV.UK website are all red flags, although the best scams are now very polished.
What HMRC will and will not do
It helps to know how HMRC genuinely gets in touch. HMRC does contact people by phone, letter, email and text in some circumstances, which is exactly why scams can be convincing.
However, HMRC will not contact you out of the blue by text or email to tell you about a tax refund, and it will not ask you to give personal or bank details by text or email. If you are unsure whether a message is genuine, GOV.UK has a page listing examples of genuine HMRC contact that you can check against.
The safest approach is simple. Never use the link, phone number or contact details in the message itself. Instead, log in to your HMRC online account directly or contact HMRC using the details on GOV.UK.
What to do if you receive a suspicious message
Do not click any links, open attachments or reply.
Do not give out any personal or financial information.
Report suspicious emails claiming to be from HMRC by forwarding them to phishing@hmrc.gov.uk.
Report suspicious texts by forwarding them to 60599.
Delete the message once you have reported it.
If you receive a suspicious phone call, hang up. If you want to check whether HMRC is genuinely trying to contact you, call HMRC back using a number from GOV.UK, ideally from a different phone.
What to do if you think you have been caught out
If you have already clicked a link or shared information, act quickly.
Contact your bank straight away if you have shared bank details or made a payment. The sooner they know, the more they may be able to do.
Change any passwords you may have entered, including your HMRC sign in details.
Report the incident to HMRC and to the national fraud reporting service.
Let your accountant know, so they can keep an eye out for any unusual activity on your tax records.
Protecting your business
Scams do not only target business owners directly. Staff who handle payments or emails can be targeted too. A few simple measures go a long way.
Talk to your team about common scams and make it normal to question anything that looks unusual.
Agree a rule that no payment is made to HMRC, or any new supplier, without checking the details independently.
Use strong, unique passwords and turn on two step verification wherever it is available.
Keep your accountant in the loop. If you receive something unexpected about your tax affairs, a quick check with us costs nothing.
How Solutions Accountancy can help
One of the benefits of working with an accountant is having someone to check with when something does not look right. Our clients know they can forward us anything that claims to be from HMRC or Companies House, and we will tell them whether it is genuine and what, if anything, needs to be done.
If you would like the peace of mind of having an experienced team looking after your tax affairs this Self Assessment season, get in touch with Solutions Accountancy today.