Scammers are targeting the self-employed this tax season. Here's how to avoid getting scammed
With the January 31st self-assessment deadline looming, HMRC has issued a warning to the UK’s self-employed workforce: be on your guard against a rising tide of tax scams
New figures reveal a worrying 16.7% surge in reported scams targeting taxpayers, with almost 150,000 cases flooding into HMRC over the past year. Fraudsters are employing increasingly sophisticated tactics, from phishing emails promising tax rebates to threatening phone calls demanding immediate payments.
Here’s one of the easiest ways to know if a scammer is targeting you:
HMRC will NOT contact you by email, text, or phone to announce a refund or ask you to request one. Anyone due a refund from HMRC can claim it via their online HMRC account or the free and secure HMRC app. So, in essence, HMRC won’t be chasing you to get your refund, you have to do it yourself.
The Freelance Informer
“The worry is that scams are on the rise and they pose a huge threat to anyone filing a self-assessment tax return. The best part of 150,000 scams being reported to HMRC in the past year is staggering,” says Seb Maley, CEO of contractor insurer Qdos.
“What’s more,” says Maley, “fraudsters are getting more sophisticated and spotting these scams is becoming more and more difficult. But the fact of the matter is, anyone caught out is likely to pay the price.”
If you’re stung by one of these scams, which can con people out of thousands of pounds, you’ll still need to pay your tax bill.
Seb Maley, CEO of contractor insurer Qdos
“Along with being vigilant and learning how to spot the signs of a scam, it’s vital that anyone filing a tax return in January ensures their compliance – failing to do so puts you at an increased risk of being investigated by HMRC,” warns Maley.
How to avoid a tax scam
- Never share personal or financial information via email or unsolicited phone calls. HMRC will never contact you out of the blue to request this
- HMRC will not contact you if you are due a refund, so you know that any emails or texts claiming you’re due a refund are likely a scam
- Ensure your tax affairs are in order. Accurate record-keeping and timely filing can reduce your risk of falling victim to scams
You can report any phishing attempts to HMRC by:
- forwarding emails to phishing@hmrc.gov.uk
- reporting tax scam phone calls to HMRC on GOV.UK
- forwarding suspicious texts claiming to be from HMRC to 60599 (dialling rom the UK)