Phishing Season

Many people dread receiving a brown envelope through the post with a letter from HM Revenue and Customs (HMRC) notifying them they will be opening an enquiry into their Tax Return but even worse than that is finding out the letter is in fact a scam and the information you have willingly provided has not gone to HMRC at all. Simon Hurren, Private Client Tax Partner, explains what you should be looking for to ensure that you do not fall foul to scams. Recently we have seen sophisticated scam letters being received by taxpayers which, on first glance, appear to be authentic. This includes reference to the individual and small business compliance team, which is the department at HMRC that would commonly deal with such an enquiry. The letters also use the correct technical language and are therefore incredibly convincing.  Gone are the days where a scam is easy to identify where you receive an unexpected email informing you that you are entitled to a HMRC tax refund, which you can claim by simply filling in your bank account details! Many taxpayers will automatically have known these were not genuine.

Worryingly though, the recent letter we saw requests lots of information, including bank statements, copies of passports and driving licences. If provided, it would result in a significant amount of information regarding either your personal or business affairs ending up in the wrong hands.

It is therefore essential that care is taken to ensure that the letters are genuine before any information is provided.

So, what should you do if you receive a letter notifying you of a HMRC enquiry or that a tax refund is due?

• Any unexpected contact from HMRC should be considered with an element of cynicism and verified before any information is provided.
• Verify if the information included in the letter is accurate. For example, if the enquiry is into your 2023/24 Tax Return, have you submitted the Return yet?
• If you have an agent who is registered as acting for you with HMRC, they should receive a copy of any enquiry notice and therefore you should check if they have received a copy.
• HMRC will not request information to be sent by email. Ordinarily in order to correspond with HMRC by email it is necessary to complete and sign an authority form.
• HMRC will not request any information to verify your identity such as passport or driving licence.
• There is a page on HMRC’s website that sets out what information will be included on each type of letter they issue.

HMRC’s recent approach has been to issue a deluge of ‘nudge’ letters covering a range of areas from overseas income, income from property or the sale of property. Such letters are designed to prompt the taxpayer to review their affairs to ensure that all income and capital gains have been reported. The approach is beneficial for HMRC as they can rely on their ‘Connect’ computer software which processes information for a wide range of databases to identify anyone who may not have reported income or gains they have. This significantly reduces the amount of time required by an inspector compared to when a formal enquiry is opened.

With this in mind, it is perhaps no surprise that scammers’ view this as an opportunity to exploit taxpayers who are keen to avoid penalties and ensure they are compliant.

If you receive any enquiry letters or other correspondence from HMRC, which is unexpected then please do reach out to one of our team who would be very happy to assist you in validating the authenticity of any correspondence and assist you in dealing with any response. We have significant experience in dealing with HMRC enquiries and can help to ensure any enquiry is concluded with a satisfactory outcome. Contact Simon or one of our tax team by emailing hello@scruttonbland.co.uk or calling 0330 058 6559.