5 ways to protect yourself against tax scammers

Yes, we’re talking to you about tax scammers again. Because they are a prolific blight on you, our industry and HMRC.

When it comes down to it, you need to protect yourself.

Want some armour for that? Ask yourself these five questions.

Am I just trusting something that ‘looks right’?

You might get fraudulent emails, phone calls, WhatsApp messages or SMS from criminals claiming to be HMRC. They’re increasingly sophisticated, keep their campaigns current and use the same design features as the real HMRC.

So, they look right on the surface. But taking a few seconds to check out details could save you being ripped off. This means things like:

Grammar and spelling mistakes
Long email addresses with numbers and symbols, and not ending in ‘.co.uk’
Generic openers, like Dear Sir/Madam/Customer

The immediacy of digital communication encourages us to quickly skim and scan for key information and then click onto the next thing. And this really helps these fraudsters do their dirty work.

You need to regard every official piece of communication with suspicion and resist the assumption that its authentic. Slow down, check the details and don’t respond until you’re certain.

Do I know how the tax system works?

Not at all? A little bit? You know a lot about how to claim a tool tax rebate for example, but not much about VAT returns?

Alexander Pope said: ‘A little learning is a dangerous thing’. Everyone knows something about tax, even if it’s just the difference between PAYE and self assessment systems of paying income tax. But do you know enough?

These scammers use this to their advantage. People have heard about tax rebates, even if they’ve never got one themselves. You might even know that HMRC sort them out as they process self assessment tax returns (so it’s the right time of year to get one). So being persuaded to open a link and fill in all your bank details becomes much easier.

If you don’t know exactly how HMRC do things (whatever you’re being offered) then you can’t properly judge if its real.

For example most work expenses and allowances tax reliefs aren’t automatic. This means that HMRC aren’t going to get in touch to tell you, or put the money into your bank account. If you’ve already claimed for your uniform and tools, then you know this and are less likely to be conned.

Have I checked they’re a legit company?

Some criminals set themselves up as fake tax refund companies. This is something that discredits our whole industry and we welcome all strategies to eliminate them, like an official regulatory body for the sector.

Be just as wary of any communications from these companies.

Check their history with Companies House.

Check their online reputation like independent reviews.
Look for staff teams that have qualifications that you can check with their professional body, like the AAT.

Make sure they have an actual, real life, postal address.
Avoid the hard sell, time sensitive offers and ‘too good to be true’ claims about how much you can get back.

Some are even audacious enough to turn up at your office or home with paperwork for you to complete ‘to see if you’re due a tax rebate’. If you haven’t initiated this, don’t tell them anything. Even if you are owed some tax relief, the chances are they’ll claim it using your details and then steal it.

And there have been cases of false claims being made by fake tax refund companies, using legitimate businesses’ details. The money goes to them as your tax agent and you’re left with the mess to clean up when HMRC realise it’s a fake claim. To HMRC, it’s under your name, with your information, so it’s your responsibility.

Am I being manipulated?

Some criminals use very threatening language, particularly in phone scams. It’s another way to get people’s information. Scare them into it. And you will probably feel at least uncomfortable, if not outright frightened.

But just because your feelings are real, doesn’t mean that they are.

Get yourself out of the conversation as quickly as possible. If it’s a phone call, just hang up. In this situation, you’re not the one who’s being rude. And it’s not HMRC on the other end.

HMRC do prosecute people for tax fraud, and they go to jail. HMRC also take debt enforcement action people try to avoid paying them. But they don’t do either of those things by phoning people threatening to send the police or bailiffs round. There’s an official procedure that they have to follow, otherwise their whole case can be compromised.

Fraudsters use this fear technique because its effective. It’s quick and easy to make people feel frightened, especially when most people are a bit wary of HMRC anyway. But this is outright emotional manipulation and you’re the only one who can guard yourself against it.

But you’re in control, no matter how you feel. You don’t have to give them any information and, when you don’t, they can’t steal from you.

The flip side of this are those scams that play on the fantasy of an unexpected windfall. The ones that promise a tax rebate you weren’t expecting, that HMRC have ‘just discovered’. Unfortunately, pragmatism prevails here (there is no such thing as a free lunch).

Don’t get carried away with thoughts of what you can spend it on. That’s what they’re counting on. Get out of the conversation, or come out of your email/message, and get in touch with HMRC to see if you really are owed anything.

Why am I clicking on this tax related link?

This is probably the nearest thing we’ve got as a mantra here, think before you click. You can’t apply the same ‘scroll, click, scroll, click’ habit to this kind of communication. You need to stop and think about why you’re clicking on this link or attachment. Or if you should be clicking on it at all.

It’s on these fake websites or documents that criminals get you to enter your personal and financial information and steal your money and, potentially, your identity. They are called ‘phishing’ websites and HMRC manage to close thousands of them every year. But there are always new ones.

It’s simple, don’t open or download anything unless you’re 100% certain where it came from.

Think before you click

If you’ve already given your details to someone you now think is suspicious, contact your bank immediately and tell them. No need to feel embarrassed, these criminals are very good at what they do. Their scams are successful, that’s why there are so many of them. Just try and get it sorted out before any more damage is done.

There’s no better way to avoid being conned than to not engage. Don’t open the attachment, don’t click on the link, don’t participate in the conversation.

Report it to either HMRC or Action Fraud: