Tax fraud alerts increase prior to the tax submission deadline
As the festive season approaches, HM Revenue & Customs (HMRC) has issued a warning for taxpayers to be on the lookout for self-assessment scams. With high inflation and pressure on finances, these scams have become more appealing for scammers, especially during periods of high tax activity such as the holiday season.
Self-assessment tax scams involve impersonating HMRC and attempting to dupe individuals into sharing personal or financial details. Scammers may encourage victims to purchase gift cards to clear 'unpaid tax bills' and read the gift card numbers over the phone. It's essential to remember that HMRC never initiates contact by email or phone asking for personal or financial information or immediate payment demands. They notify taxpayers by official letters instead.
To protect yourself from these scams, here are some precautions to follow:
- Never share your government gateway login credentials with anyone, including those claiming to be tax agents. Legitimate HMRC-registered agents do not need your personal login details to file your tax return.
- Be cautious of phishing emails and calls. If you receive suspicious messages, report them directly to HMRC and Action Fraud.
- Avoid opening suspicious emails or clicking on links related to tax refunds or accounts, and never provide your Social Security number or tax information through email or websites unless you are certain they are legitimate.
- Use only reputable tax preparers with valid credentials, such as a Preparer Tax Identification Number (PTIN) for IRS preparers, and avoid preparers who base fees on your refund or ask to have refunds sent directly to them.
- Shred tax documents and bank statements before disposal to prevent thieves from accessing your financial information.
- Be wary of companies promising unusually high tax refunds or those communicating only via phone, text, or social media and not providing copies of tax returns before submission.
These precautions help reduce the risk of identity theft, fraudulent tax filings, and losing refunds to scammers. According to HMRC, over 71,000 scam reports in the last year were fake tax rebate claims. If you suspect a scam, report it immediately and contact your bank to cancel any scheduled payments to the scammers.
AJ Bell notes that more people than ever will be filing a self-assessment return due to changes in tax-free limits and income tax thresholds. It's crucial to stay vigilant during this time to avoid falling victim to these scams. If applications come from the scammers, cancel them promptly to prevent identity fraud.
Remember, your safety is paramount. By following these guidelines, you can help ensure a secure and stress-free tax season. Happy holidays!
- In addition to being cautious about phishing emails and calls, be aware that scammers may also target your savings, dividends, pensions, and other personal-finance matters by impersonating HMRC and demanding immediate payment or asking you to purchase gift cards.
- To safeguard your savings and pensions, it's essential to avoid sharing your financial details, even if the request comes with a promise of high interest rates or generous investment opportunities.
- To maintain financial stability during the holiday season, remember to keep track of your savings, dividends, and pension statements, and report any suspicious activity related to these areas to HMRC and Action Fraud promptly.
