Tag: HMRC

Self Assessment customers could be a target for fraudsters, HMRC warns

Self Assessment customers who are starting to think about their annual tax returns for the 2021 to 2022 tax year should guard against being targeted by fraudsters, warns HM Revenue and Customs (HMRC).

In the 12 months to August 2022, HMRC responded to more than 180,000 referrals of suspicious contact from the public, of which almost 81,000 were scams offering fake tax rebates.

Criminals claiming to be from HMRC have targeted individuals by email, text and phone with their communications ranging from offering bogus tax rebates to threatening arrest for tax evasion. Contacts like these should sound alarm bells – HMRC would never call threatening arrest.

Anyone contacted by someone claiming to be from HMRC in a way that arouses suspicion is advised to take their time and check the scams advice on GOV.UK.

Customers can report any suspicious activity to HMRC. They can forward suspicious texts claiming to be from HMRC to 60599 and emails to phishing@hmrc.gov.uk. Any tax scam phone calls can be reported to HMRC using the online form on GOV.UK.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Never let yourself be rushed. If someone contacts you saying they’re from HMRC, wanting you to urgently transfer money or give personal information, be on your guard.

“HMRC will never ring up threatening arrest. Only criminals do that.

“Tax scams come in many forms. Some threaten immediate arrest for tax evasion, others offer a rebate. Contacts like these should set alarm bells ringing, so take your time and check ‘HMRC scams advice’ on GOV.UK.”

Fraudsters target customers when they know they are more likely to be in contact with HMRC, which is why Self Assessment customers should be extra vigilant to this activity. There is a risk they could be taken in by scam texts, emails or calls either offering a ‘refund’ or demanding unpaid tax, thinking that they are genuine HMRC communications referring to their Self Assessment return.

Some customers who have not done a Self Assessment return previously might be tricked into clicking on links in these emails or texts and revealing personal or financial information to criminals.

The deadline for filing paper tax returns for the 2021 to 2022 tax year is 31 October 2022, and 31 January 2023 for those filing their tax return online. Customers who file their return online via GOV.UK should not share their HMRC login details. Someone using the details could steal from the customer or make a fraudulent claim in their name.

HMRC is actively tackling the scams and fraudsters who attempt to mimic genuine HMRC activity and messages. The department’s dedicated Customer Protection Team works continuously to identify and close down scams.

HMRC also tackles misleading websites designed to make people pay for services that should be free or low cost, charging to connect people to free HMRC phone helplines. To protect the public, HMRC formally disputes and takes ownership of HMRC-branded internet domain or website names. Since 2017, the department has recovered more than 183 websites hosting low-value services such as call-connection sites, saving the public millions of pounds.

Teenagers could be missing out on a stash of cash

Tens of thousands of teenagers in the UK who have not yet claimed their matured Child Trust Funds savings could have thousands of pounds waiting for them, reminds HM Revenue and Customs (HMRC).

Child Trust Funds are long-term savings accounts set up for every child born between 1 September 2002 and 2 January 2011. To encourage future saving and start the account, the government provided an initial deposit of at least £250.

The savings accounts mature when the child turns 18 years old. Eligible teenagers, who are aged 18 or over and have yet to access their Child Trust Fund account, could have savings waiting for them worth an average of £2,100.

If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. This might be a bank, building society or other savings provider.

Alternatively, they can visit GOV.UK and complete an online form to find out where their Child Trust Fund is held.

Many eligible teenagers who have yet to claim their savings might be starting university, apprenticeships or their first job. The lump-sum amount could offer a financial boost at a time when they need it most.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:“Teenagers could have a pot of money waiting for them worth thousands of pounds and not even realise it.

“We want to help you access your savings and the money you’re entitled to. To find out more search ‘Child Trust Fund’ on GOV.UK.”

An estimated 6.3 million Child Trust Fund accounts were set up throughout the duration of the scheme, containing about £9 billion. If a parent or guardian was not able to set up an account for their child, HMRC opened a savings account on the child’s behalf.

Teenagers aged 16 or over can take control of their own Child Trust Fund if they wish, although the funds can only be withdrawn once they turn 18 years old.

Where children have a Child Trust Fund, families can still pay in up to £9,000 a year tax-free. The account matures once the child turns 18 years old and no further money can be deposited. They can either withdraw the funds from the matured Child Trust Fund account or reinvest it into another savings account.

Until the child withdraws or transfers the money, it stays in an account that no-one else has access to.

The Child Trust Fund scheme closed in January 2011 and was replaced with Junior Individual Savings Accounts (ISA).

Less than one month left for VAT businesses to be ready for Making Tax Digital filing

HM Revenue and Customs (HMRC) is reminding businesses that from Tuesday 1 November, they will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns.  

By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.  

MTD’s aim is to help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow. 

More than 1.8 million businesses are already benefitting from the service, and more than 19 million returns have been successfully submitted through MTD-compatible software so far.  

In less than one month, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.  

If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return. 

https://youtu.be/OyWJz0fSDE4

Richard Fuller MP, Economic Secretary to the Treasury, said: “Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them – growing their business.

“I encourage any VAT-registered businesses still to register for Making Tax Digital to get online and sign up.”

If a business hasn’t already signed up to MTD or started using compatible software, they must follow these steps now: 

Step 1. Choose MTD-compatible software – a list of software, including free and low-cost options, can be found on GOV.UK. 

Step 2. Check the permissions in the software – once a business has allowed it to work with MTD, they can file VAT returns easily. Go to GOV.UK to learn how to do this and search ‘manage permissions for tax software’. 

Step 3. Keep digital records for current and future VAT returns – a business can find out what records need to be kept on GOV.UK. 

Step 4. Sign up for MTD and file future VAT returns using MTD-compatible software – to find out how to do this, go to GOV.UK and search ‘record VAT’. 

If a business is already exempt from filing VAT returns online or if their business is subject to an insolvency procedure, they will automatically be exempt.

A business can check if they can apply for an exemption from MTD on GOV‌‌‌.UK if it is not reasonable or practical for them to use computers, software or the internet. HMRC will consider each application on a case-by-case basis.    

If a business is new and is not yet registered for VAT, they will automatically be signed up for MTD while registering for VAT through HMRC’s new VAT Registration Service (VRS). 

Registering via this online service not only means a faster VAT registration and improved security, but also helps new businesses to be fully compliant with MTD requirements from Day 1 – although they will still need to get the right software to submit their VAT returns.  

A range of accessible help is available online through GOV.UK, webinars and videos as well as through HMRC’s Extra Support Service. 

Thousands of people have also benefitted from HMRC’s live webinars, which offer support on filing digitally and explain how it can help businesses. HMRC is continuing to communicate directly with businesses and agents to support them as they transition to MTD for VAT. 

HMRC: Cost of Living payments begin for tax credits claimants

HMRC recently confirmed that HMRC’s first Cost of Living Payment to 1.1 million claimant families receiving tax credits will be made between 2 and 7 September 2022. The first HMRC payments will total around £360 million.

We are now letting you know that we have started to issue these payments.

If tax credits customers believe they are eligible but have not received a £326 payment between the published payment dates, they should wait until 16 September to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment.

The UK Government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for. 

Background: 

  • Details of HMRC’s first Cost of Living Payment to tax credit-only customers, with quotes and scam warning advice, can be found here:
  • Cost of Living payments were announced in May 2022. Details of DWP and HMRC payments were also publicised in June, July and August 2022. The latest payment schedule information is available here.

As well as the Cost of Living Payment, other government support includes:

  • £400 discount from the UK Government to help with the cost of energy bills from October onwards     
  • £300 Pensioner Cost of Living Payment that will be paid alongside Winter Fuel Payments  
  • £150 Disability Cost of Living Payment from 20 September for those receiving an eligible UK disability benefit.

This is in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants; a rise in the National Living Wage to £9.50 an hour; and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.

Over one million families claiming tax credits to receive first Cost of Living Payment from 2 September

Around 1.1 million claimant families receiving tax credits will get their first Cost of Living Payment from Friday 2 September 2022, HM Revenue and Customs (HMRC) has confirmed.

This £326 UK Government payment will be paid automatically into eligible tax credit-only customers’ bank accounts between 2 and 7 September 2022. The first HMRC payments will total around £360 million.

Nadhim Zahawi, Chancellor of the Exchequer, said: “I know people are really concerned by rising prices so I’m glad that over a million more low earners will shortly receive their first Cost of Living Payment. We are also preparing options for further support so the new Prime Minister can hit the ground running.

“Alongside £400 off most people’s energy bills, tax cuts and the Household Support Fund, these direct payments are a very important part of our £37 billion package of help for households, which is targeted at those who need it most.”

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “This first Cost of Living Payment will provide vital financial support for eligible tax credit-only claimants across the UK. A second payment will be made to eligible customers from the winter.

“The money will be paid automatically into bank accounts, so people don’t need to do anything to get this extra help.”

These latest payments mean that more than eight million eligible households in receipt of a means-tested benefit will have received the first of two automatic Cost of Living payments of £326 from 14 July.

The second means-tested payment of £324 will be issued later this year – from the autumn for DWP benefit claimants, and from the winter for tax credit-only customers.

Tax credit claimants who also receive benefits from the Department for Work and Pensions will have already received their first Cost of Living Payment from July 2022.

The Cost of Living payments from the UK Government are part of a £37 billion package of support, which will see millions of low-income households receive at least £1,200 this year to help cover rising costs.

As well as the Cost of Living Payment, other UK Government support includes:

  • £400 discount from the government to help with the cost of energy bills from October onwards    
  • £300 Pensioner Cost of Living Payment that will be paid alongside Winter Fuel Payments  
  • £150 Disability Cost of Living Payment from 20 September for those receiving an eligible UK disability benefit.

This is all in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants; a rise in the National Living Wage to £9.50 an hour; and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.

The UK Government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for. 

HMRC: One week left to update post-16 Child Benefit claims

While young people are considering their future beyond their GCSE or Scottish National Certificate results, HMRC is asking parents and carers to make sure they update their Child Benefit records by 31August, or risk seeing their payments end.

HMRC has written to 1.3 million parents and carers of children, who are in the last year of school or education, to remind them to update their Child Benefit records. More than 600,000 families have already notified HMRC, but many have yet to do so.

Parents and carers can update their Child Benefit records using their Personal Tax Account on GOV.UK, by returning a completed copy of the form they were sent earlier in the year, or by telephone.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “Child Benefit provides vital financial support for families and we want to make sure no-one misses out because they haven’t updated their details on time.

“The quickest way to notify HMRC is via your Personal Tax Account online, or search ‘child benefit when your child turns 16’ on GOV.UK for more information or further options for contacting us.”

Child Benefit is paid to eligible parents or carers who are responsible for a child under 16, or under 20 if they are in full-time non-advanced education or approved training.

This includes  A-levels/ Scottish Highers, NVQs up to Level 3, or certain traineeships – a list of approved courses and training schemes is available on GOV.UK.

Back to school? HMRC can help with childcare costs

Families receive up to £500 every three months (£2,000 a year) per child, or £1,000 (£4,000 a year) if their child is disabled, helping towards the cost of before and after-school clubs, childminders and nurseries, holiday clubs and other approved childcare schemes.

In June 2022, more than 23,200 working families in Scotland benefitted from Tax-Free Childcare – but thousands more could be missing out. Overall in June, HMRC paid out £41.6 million in top-up payments, which was shared between approximately 391,000 families across the UK.

Families can find out what childcare support is best for them via Childcare Choices.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax-Free Childcare can make a big difference to families in Scotland, helping with the bills for things like wraparound care for school children, nurseries, childminders and holiday clubs. It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK.”

More than one million families in the UK are entitled to some form of UK Government childcare support and the government is encouraging those eligible to not miss out on their entitlements.

For thousands of families who use Tax-Free Childcare, the money they save each month on their childcare costs is money that goes back into their pockets.

Accounts can be opened at any time of the year and can be used straight away, and money can be deposited at any time and used when needed.

Any unused money that is deposited can be simply withdrawn at any time.

HMRC: Couples urged to “say yes” to Marriage Allowance proposal

At the height of the wedding season, HM Revenue and Customs (HMRC) is reminding married couples and people in civil partnerships to put extra cash at the top of their gift list and sign up for Marriage Allowance.

Marriage Allowance allows married couples or people in civil partnerships, including those who have been together for many years, to share their personal tax allowances if one partner earns below the Personal Allowance threshold of £12,570, and the other is a basic rate taxpayer.

Eligible couples can transfer 10% of their tax-free allowance to their partner, which is £1,260 in 2022/23. It means couples can reduce the tax they pay by up to £252 a year. They can apply any time and, if eligible, could backdate their claims for up to four previous tax years to receive a payment of up to £1,242.

Marriage Allowance is free to apply for, and customers are reminded to claim directly via HMRC’s online portal to ensure they receive 100% of the tax relief they are eligible for. Visit GOV.UK to find out how to apply for Marriage Allowance.

Marriage Allowance is one of a number of benefits and reliefs available to boost family finances at a time when many are concerned with the rising cost of living.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “We want to ensure people are receiving vital financial support at a time when they need it most.

“Married couples or those in a civil partnership could potentially receive tax relief worth up to £1,242, meaning extra cash in their pockets.

“To find out if you are eligible and how to apply search ‘Marriage Allowance’ on GOV.UK.”

More than 2 million couples currently benefit from Marriage Allowance, but there could be thousands more who are eligible to claim.

Even if couples don’t qualify for Marriage Allowance when they first get married, a change in circumstances years later could mean they become newly eligible. These include:

  • one partner retiring and the other remaining in work
  • a change in employment
  • a reduction in working hours which means their earnings fall below their Personal Allowance
  • maternity, paternity, or shared parental leave
  • unpaid leave or a career break
  • one partner studying or in education and not earning above their Personal Allowance

If a spouse or civil partner has died since 5 April 2018, the surviving person can still claim by contacting the Income Tax helpline.

Marriage Allowance claims are automatically renewed every year. However, couples should notify HMRC if their circumstances change.

Just one week to go to the tax credits deadline – don’t miss out

The deadline for tax credits renewals is 31 July 2022. With just over a week to go, customers are being urged to renew their claim using HMRC’s online services.

With just over a week to go, HM Revenue and Customs (HMRC) is urging more than 222,600 tax credits customers to renew their claims before the 31 July 2022 deadline.

Customers are being warned not to leave their renewal until the last minute and risk their payments being stopped. They can do it any time – day or night – through HMRC’s online services, including the HMRC App.

Tax credits help working families with targeted financial support and more than 363,000 customers have already renewed ahead of the deadline.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “The 31 July deadline is fast approaching and renewing your tax credits is too important to forget. HMRC support is available at all times of the day and night via GOV.UK and the smartphone app to help customers get their renewals right.

“It’s great to see so many customers have already renewed their tax credits. I urge those who are yet to renew to do so as soon as possible, in order to avoid having their payments stopped.”

Customers can manage their tax credits quickly and easily online. Once tax credits customers have completed their renewal, they can use their online account to check its progress and find out when they will hear back from HMRC.

If there is a change in a customer’s circumstances that could affect their tax credits, they must report the changes to HMRC. These include changes to:

  • living arrangements
  • childcare
  • working hours, or
  • income (increase or decrease).

Customers choosing to use the HMRC app on their smartphone can:

  • renew their tax credits
  • make changes to their claim
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

As part of the UK government’s package to support households with the rising cost of living, a Cost of Living Payment of £650, payable in two separate lump sums of £326 and £324, for households receiving certain benefits or tax credits, has been introduced.

For eligible customers receiving tax credits only and no other eligible benefits, HMRC will contact them to let them know they’re eligible and will issue payments automatically, with the first being made in the autumn. Customers do not need to contact HMRC or apply for the payment. More information on the Cost of Living Payment, including eligibility, is available on GOV.UK.

Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check. If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

As the deadline for renewals approaches, customers hurrying to sort out their accounts could be more vulnerable to scammers. 

HMRC is warning that if someone contacts them saying that they are from HMRC and wants the customer to transfer money urgently or give personal information, they should never let themselves be rushed. 

HMRC is also urging customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name. The department urges people to take their time and check HMRC’s advice about scams on GOV.UK.

Customers can download the HMRC app for free from their smartphone app store.

Phone scams reported to HMRC fall in Scotland

Phone scam reports have fallen by 84 pent cent in Scotland over the last year, new regional data from HM Revenue and Customs (HMRC) has revealed. 

In the Scotland, 384 phone scams were reported to HMRC in June this year compared to 2432 in June 2021.  

People aged between 25 and 34 appear to be most affected by scams in the region, with 94 reporting phone scams in Scotland in June. 

HMRC has made significant efforts to tackle the problem and protect the public. Scam call reports from across all regions peaked in March 2021 with almost 76,000 reports. This was slashed to just over 5,000 in March this year.  

To fight phone scams, HMRC has worked with the telecoms industry and Ofcom to stop HMRC’s helpline numbers from being spoofed by fraudsters, who can no longer appear to be calling from an HMRC number. HMRC also has a dedicated customer protection team working on cyber and phone phishing scams around the clock. 

The drop in reported phone scams is a testament to the work of teams across HMRC in tackling fraud. HMRC’s phishing referral tools and innovative technology all play a part in the department’s efforts to combat fraud, which has resulted in fewer people falling victim to and reporting tax scams.  

Kelly Paterson, HMRC’s Chief Information and Security Officer, said: 

“We work tirelessly to tackle scams and protect hard-working taxpayers from becoming victims of fraud. 

“Never let yourself be rushed. If someone contacts you saying that they are from HMRC, wanting you to urgently transfer money or give personal information, be on your guard. HMRC will never ring out of the blue threatening arrest. 

“To help us fight these crimes, forward suspicious texts claiming to be from HMRC to 60599 and emails to phishing@hmrc.gov.uk. Report tax scam phone calls to us on GOV.UK.” 

HMRC received over 212,500 reports in total of all kinds of scams, by email, text message and phone, over the past year, nationally. 

Phone scammers often call people threatening immediate arrest for fictitious tax owed.  Sometimes they claim that the victim’s National Insurance number has been used in a fraud or offer a fake tax rebate as a way of stealing personal and banking information.   

In addition to warning the public about phishing scams, HMRC urges people never to share their HMRC login details. Criminals using the logins could steal from the customer or make a fraudulent claim in their name. 

HMRC’s phishing scam advice is:

Stop:

  • take a moment to think before parting with your money or information
  • if a phone call, text or email is unexpected, don’t give out private information or reply, and don’t download attachments or click on links before checking on GOV.UK that the contact is genuine
  • do not trust caller ID on phones. Numbers can be spoofed

Challenge:

Protect:

  • forward suspicious texts claiming to be from HMRC to 60599 and emails to phishing@hmrc.gov.uk. Report tax scam phone calls on GOV.UK
  • contact your bank immediately if you think you’ve fallen victim to a scam, and report it to Action Fraud (in Scotland, contact the police on 101).

The numbers in this release refer only to phone scam reports to HMRC using a GOV.UK form introduced in 2020 and do not reflect all of the phone phishing reports that the department has received through email and other channels.