I’m constantly amazed at how often potential scams are attempted through emails or phone calls. Scammers rely on the law of large numbers, sending out thousands of messages in the hope that at least some people will respond. One area that they frequently target is your relationship with HM Revenue & Customs (HMRC). Small business owners are often cautioned by HMRC to be wary of potential scams, especially as the January 31 self-assessment deadline approaches.
HMRC has reported alarming statistics, including over 130,000 reports of tax scams in the 12 months leading up to September 2023. The most common form of deception is the promise of a tax rebate. HMRC provides guidance to help individuals recognize and avoid these scams.
Common scams include:
- Scam emails from HMRC offering a tax rebate
- Phone calls or text messages offering a tax rebate
- Messages requesting updates to tax details
- Threats of penalties for tax evasion
These types of scams are particularly prevalent around the self-assessment deadline on January 31.
Fraudulent messages are often referred to as “phishing.” This term describes the practice of criminals sending out scam messages posing as legitimate organizations in order to obtain sensitive personal or financial information.
It’s crucial to be able to discern genuine communications from HMRC. Most importantly, HMRC will never request your personal or financial information via email or phone. Knowing what to look for in a genuine communication is vital. Here are some examples of genuine emails you might receive from HMRC:
- Annual tax summary: Alerts about your tax summary with the subject line ‘Your Annual Tax Summary is ready’, which will not ask for personal or financial details
- Help and support emails: Guides and links to resources to assist taxpayers
- Making Tax Digital: Updates on current or forthcoming obligations related to the government’s Tax Administration strategy
- Promotion of the personal tax account: Encouragement to sign up for a personal tax account to manage taxes online
This is just a selection of the communications your business might receive from HMRC. For a comprehensive list or to verify the authenticity of a specific message, visit https://www.gov.uk/guidance/check-if-an-email-youve-received-from-hmrc-is-genuine
If you’re unsure, feel free to contact the DIA Tax Service for assistance.