The beginning of a new year is an important time because the deadline for filing your self-assessment tax return is on 31 January 2025. It is important that you complete the paperwork on time, and accurately, so you pay only what you need to, and avoid any late penalties.
However, it is important to be cautious when filing your tax return because criminals often operate scams designed to access your personal information and steal your wealth.
HMRC received almost 150,000 reports of scams last year
Fraudsters often pose as legitimate organisations to coerce unsuspecting members of the public into sharing sensitive information.
Indeed, according to the UK government, HMRC received 150,000 reports of scams in the last year, many of them relating to self-assessment.
For example, 71,832 of those attempted scams were communications promising a tax rebate. Fraudsters may also send emails demanding payment of an outstanding tax bill. They might use these emails as an opportunity to encourage you to share your bank details or other private information.
As such, it is important to be aware of the potential for scams when filing your return and paying your tax bill. Fortunately, there are several ways to protect yourself.
Read on to learn five ways to avoid scams as the self-assessment deadline approaches.
1. Recognise how HMRC will contact you
Often, understanding the rules about how HMRC will contact you can help you spot a scam right away. For example, HMRC will never:
- Ask for personal information or bank details on the phone, through text message, or in an email
- Leave voicemails demanding payment or threatening legal action
- Contact you via email or text message about a tax rebate.
Generally, if somebody claiming to be from HMRC contacts you directly and asks for personal information, this is likely to be a scam.
2. Claim refunds through your online account
Offering tax refunds is one of the main ways that scammers may target you. Remember, HMRC will never contact you to offer a refund or tell you that you need to apply for one. Anything relating to tax rebates is normally dealt with through your online account or the HMRC app.
Once you have filed your return and HMRC has checked the information, you will receive your final calculation. At this point, you can check your online account where you will see whether you have an outstanding bill to pay, or if you are entitled to a rebate.
Provided you apply through your online account and ignore any direct communications about refunds, you should be safe.
3. Look for warning signs in email communications
You may receive emails from HMRC giving you updates about your self-assessment tax return, or other tax issues. Unfortunately, it can be difficult to distinguish these genuine emails from those sent by scammers.
Fraudulent emails might ask you to share sensitive information, or criminals could encourage you to click on links, which give them access to your device. This technique is known as “phishing” and it is one of the most common methods used by scammers.
Learning how to spot phishing emails could help you stay safe when filing your return. There are several signs to look for including:
- Suspicious email addresses that are different from the usual HMRC address
- Generic introductions such as “dear customer” instead of your name
- Requests for personal information
- Spelling and grammar errors
- Suspicious links.
If you see any of these indicators, you may want to proceed with caution and avoid clicking links or following the instructions in the email.
4. Keep your electronic devices secure
You may fill out your returns through your online account and communicate with HMRC using email. As such, it is important to keep your electronic devices secure, because you may hold sensitive information about yourself and, if applicable, your business.
Keep the login details for your device, and your online accounts, private. If you do need to write the details down, store them separately from the device.
It is also important to use strong passwords to protect your computer and phone and change them if you suspect that they have been compromised. You may also need to install antivirus software on your devices and scan for malicious programs regularly.
5. Contact HMRC directly if you are concerned
If you believe that scammers have targeted you, it is important to contact HMRC directly. They will tell you if a communication is legitimate or not. They can also give you guidance if you have accidentally shared sensitive information with scammers.
Reporting potentially fraudulent communications may also help to protect others from scams. You can do this by:
- Forwarding suspicious emails to phishing@hmrc.gov before clicking any links
- Forwarding suspicious text messages to 60599
- Reporting suspicious activity on the UK government website.
Bear in mind that the methods scammers use are always becoming more advanced, so if you have any concerns at all, it is best to be safe and contact HMRC.
Get in touch
If you would like support managing your tax liability, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning.
