Laura Suter, head of personal finance at AJ Bell, comments on reports of scammers targeting those filing tax returns:
“The government’s crackdown on tax allowances means many more people will be filing a tax return in the next few years – this offers up ripe pickings for scammers wanting to defraud people navigating the system for the first time. On top of that, people’s budgets being crushed in the cost-of-living crisis means that a text promising a tax rebate will be more appealing than ever – but could end in financial disaster.
“The move to cut the tax-free limits on capital gains tax and dividend tax, as well as lower the threshold for the additional rate income tax band, means that more people will be filing a tax return next year. On top of that, wage growth will push more people over the £100,000 earnings threshold, meaning that they need to file a tax return, while others will have earned income from savings and investments, resulting in them needing to file.
“Many of these people filing will be doing so for the first time ever, navigating a complicated system often without help. It means they are far more likely to fall prey to scammers who send a text asking for details or promising them a tax rebate. This is particularly the case for those filing close to the deadline and in a hurry – we’d expect to see a spike in scams around the 31 January deadline for filing online.
“Whether you’re due to file a tax return or not, you need to have your wits about you – scammers will target anyone, not just those who have to file for self-assessment. If you get any message or email out of the blue that appears to be from the tax office, don’t respond directly to it. Instead, contact HMRC using details published on the official gov.uk website to check whether the information is legit.”
