Latest tax scams: what you need to watch out for

Fraudsters are busy this month, faking messages from the tax office to trick people into handing over their money. 

They know at the end of the financial year (which occurs on 5 April), an email or text appearing to be from HMRC won’t seem out of the ordinary - and therefore a scam has more chance of success. 

It’s likely to be an impersonation scam, where you’re convinced to make a payment or give personal details to someone claiming to be from a trustworthy government department. 

There are some common cons linked to the end of the financial year that you need to watch out for: 

• An offer of a tax refund or rebate 
• Being threatened with arrest due to accusations of underpaid tax or tax evasion  
• Notification that your tax details are out of date. 

Criminals want to get into your bank account, coerce you into sending money or obtain your personal details to be sold on the dark web. 

An HMRC spokesperson told Saga Money: “Criminals are great pretenders. They use emails, phone calls and texts to try and dupe citizens, and often mimic government messages to make them appear authentic. 

“Around the end of the tax year, some people might expect to hear from HMRC and so can be tricked into sharing their details or even money, with fraudsters.” 

Don’t think it’ll happen to you? HMRC received more than 130,000 reports about tax scams in the 12 months to September 2023, so it pays to be on your guard. 

How to spot a tax scam 

Criminals looking to steal your personal details may send scam emails, texts or make bogus phone calls, demanding tax or offering rebates - often requiring you to act within a very short period of time. 

The simplest way to avoid being scammed is to always go and check the demand yourself, ideally by heading to HMRC’s website or app, and never respond to requests for information over the phone, text or on email. 

The messages may look or sound genuine, using an address that appears to be from HMRC, but don’t click on any attachments or links. These may take you to a fake website that steals your details or infects your tech with damaging malware. 

If the message asks for details like your date of birth or bank details (including passwords and information such as your mother’s maiden name), don’t respond and instead report it to HMRC immediately. 

If you give up the information to the fraudsters, your money could be stolen instantly. Worse still, your details could then be sold on to criminal gangs, meaning you’ll get stung again in the future – just when you think the worst has already happened. 

HMRC will never ask for personal or financial information through text and won’t send notifications by email about tax rebates or refunds. 

It will also never contact you with an urgent deadline. In short: if you’re ever in doubt, forward the email to phishing@hmrc.gov.uk or get in contact another way to check if a message is genuine. 

What can you do to stay safe? 

First, double check the source of any email, letter or text message you’ve received, along with any links or attachments. 

Paul Maskall, Fraud and Cybercrime Prevention Lead at UK Finance, says: “It might look convincing but check any website address carefully, and check the sender on the email.  

“Do they look authentic? If there’s a link, hover over it (but don’t click) to check if the [destination] appears genuine.  

“If you can, ask someone else to check it too. Another pair of eyes might pick up something you don’t spot.” 

Don’t hand over any personal details or banking information and, instead, use telephone numbers from HMRC’s contact details at Gov.uk, to check whether the message is genuine. 

“Your best line of defence against scammers is to step back, cool down and, if you can, ask someone else what they think,” adds Maskall. 

“If you’re not completely sure, don’t be rushed into doing anything.” 

Be alert to someone hurrying you, threatening you or telling you to transfer money or ignore warnings from a banking app or website.  

Maskall says: “[Being scammed] has nothing to do with stupidity, carelessness or negligence. We have so little to go on when it comes to online communication, especially when our emotions are heightened, that we can easily overlook something that might seem more obvious in the cold light of day. 

If you think you’ve been scammed 

If you’re worried you may have handed over personal information or money to scammers, contact your bank’s fraud department immediately – using a phone number printed on bank statements or any other official documents from them - and they will advise on what to do next. 

Report your experience to Action Fraud, the fraud and cyber-crime section of the police and, in the case of a scam involving the tax office, report it to HMRC. 

Year-round vigilance 

Tax scams won’t end after 5 April. Criminals will continue to impersonate HMRC, along with banks, building societies, retailers and other government departments, so keep your guard up all year round. 

The murky world of scams can feel confusing and scary, but there’s a lot of advice out there and the more you know, the better protected you’ll be. 

Maskall says: “We’d urge people to be alert to potential scams and follow the advice of the Take Five to Stop Fraud campaign.

“Stop to think and challenge any requests for personal details out of the blue and protect yourself by reporting this to your bank.  

"We understand how alarming the fear of these scams can be, but [you] are not powerless. There are things you can do to protect yourself.” 

Key takeaways 

Be aware of any message or call pressuring you into action – you can always stop and think. 

• HMRC may contact you over text and email, but never to offer refunds or ask you to enter private details. 
• Always check any web address you’re given to click – scammers are good at disguising fake names with legitimate-sounding ones.
• Always report suspicious emails and phone calls to HMRC to help others. 
• If in doubt, get a second opinion over whether something might be a scam. 
• Always double check using Gov.uk or the HMRC web portal and app to see if you’re required to take any action.