HMRC – Page 12 – The NEN – North Edinburgh News

HMRC: More than 33,600 tax credits customers use HMRC app to renew

More than 33,600 customers have successfully used the HMRC app to renew their tax credits claim so far this year, a 39% increase on last year, HM Revenue and Customs (HMRC) has revealed.

Tax credits help working families with targeted financial support, so it is important customers act now to renew before the quickly approaching 31 July deadline to ensure their payments don’t stop.

HMRC is encouraging more customers to use the highly-rated app as it is a quick and easy way to get this vital job done.

It is free and simple to use and allows direct access to tax credits at the touch of a button. There are many benefits of the fully secure app, which can be used on any smartphone or tablet, at any time, eliminating the need to call HMRC and helping customers to save time and money.

Customers using the HMRC app 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

There are nearly 259,000 tax credits app users, who have used the app more than 10 million times in the last year to do things like check their payment dates and amount.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for our tax credits customers to renew their claims. It’s quick, easy and free to complete a renewal on the HMRC app – search ‘HMRC’ in your smartphone app store.”

Customers can download the app at the App Store or Google Play. Online reviews at both indicate plenty of satisfaction with the app’s performance, as it currently holds a score of 4.5 stars on the App Store, and 4.7 on Google Play.

HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

Once signed into the app after initial download, there are options for users to set up and select facial recognition, a fingerprint or a 6-digit pin to get fast and fully secure access to their details.

Customers can also renew their tax credits and manage their claims online on GOV.UK. Customers can log into GOV.UK to check on the progress of their renewal, be reassured it’s being processed and know when they’ll hear back from HMRC.

The UK Government has recently announced 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, to help with the cost of living. If receiving tax credits only, they are eligible for each payment. HMRC will contact them and issue payments automatically, with the first being made by 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 people 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.

Find out more about renewing tax credits claims.

HMRC phishing scams – how to spot and avoid bogus communications

Fake emails, calls and messages suggesting they are from Her Majesty’s Revenue & Customs (HMRC) have grown exponentially in the last five years with many people falling foul to fraudsters.

Here, Perrys Chartered Accountants discusses the latest HMRC cyber scams doing the rounds and how to spot bogus communications:

In 2021, HMRC received more than 670,000 calls from individuals reporting tax scams. Despite a significant drop in reports to HMRC in recent months, statistics show that tax-related scams doubled during the pandemic and HMRC is still advising caution of any correspondence – particularly via text or email – implying it is from the tax authority.

Scams can come in many forms. However, the most common tactic used by fraudsters is contacting potential victims via automated messages. So, what should you look out for?

HMRC email scams

Phishing attacks aren’t new, but the tactics employed by fraudsters have become increasingly sophisticated over the years with many able to replicate email addresses from authorities, such as HMRC, that on first glance look bona fide.

These attacks aim to extract personal information and data from an individual that enables fraudsters to steal identities, bank details and more.

One such campaign doing the rounds is an email telling customers that they are eligible to receive an employment income support scheme credit during the COVID-19 pandemic. If you receive such an email, you should not reply to it, click on any links in the email or open any attachments. You should also avoid disclosing any personal or payment information. Instead, report it immediately to HMRC by emailing it to phishing@hmrc.gov.uk.

Fake tax rebates

Another common scam is the offer of a tax rebate either via text or email. HMRC will never contact anyone by text or email about tax rebates, so any messages received offering a refund will certainly be fake. If you receive any such message, do not reply but report it to HMRC and then delete it.

Be wary of website links and malicious web pages

HMRC will never ask you to click on a link to complete your details online to receive a rebate.

Web pages can also be dangerous with many fake sites cloning or copying official pages from HMRC’s website or claiming to be officially affiliated with the tax authority. To avoid being fooled by a fake website, always visit HMRC directly by typing the government’s official URL https://www.gov.uk/ into your browser.

HMRC text scams

HMRC will never ask for any personal or financial information when sending out texts. If you receive such a text, do not reply to it or open any links contained in the message. Instead, you can send any phishing text messages to HMRC using the text number 60599 or by emailing it to phishing@hmrc.gov.uk.

HMRC phone scams

Phone scams are performed using a variety of methods and are often used to target elderly and vulnerable people.

A popular way for fraudsters to target potential victims is by using an automated message. HMRC is aware of a scam which tells the receiver that they are the subject of a lawsuit and to press 1 to speak to a caseworker to make a payment. This is false. If you receive such a call, you should end it immediately.

Other similar scams might refer to National Insurance number fraud or tax refunds and will ask you to supply bank or credit card information. If you are at all unsure, or you cannot verify the caller, hang up and report it to Action Fraud.

When reporting phone scams, you should include the date of the call, the phone number used to contact you and what the call was about. You can also contact HMRC directly on its phone number 0300 200 3310 to verify the legitimacy of any calls you receive alleging to be from the authority.

HMRC WhatsApp scams

HMRC will never use WhatsApp to contact customers about a tax refund. If you receive any such communication via WhatsApp saying it is from HMRC, you should report it immediately by emailing HMRC and then delete it.

HMRC social media scams

One of the most recent social media scams being used to con people is the distribution of direct messages via Twitter offering a tax refund. These messages are not genuine and HMRC will never use social media platforms, such as Twitter, Instagram, Facebook and LinkedIn, to offer tax rebates or request personal information. Ignore all such messages and report them to HMRC straight away.

HMRC refund companies

Refund companies that send emails or texts advertising their services and offering to apply for a tax rebate on your behalf in return for a fee are not connected with HMRC in any way. Before using any such service, you should read the company’s terms and conditions or disclaimers and think carefully before instructing them to assist you. If in doubt, contact a professional accountant for advice.

HMRC customs duty scams

Changes officially introduced by HMRC on 1 January 2021 mean that some UK consumers buying goods from EU businesses might need to pay customs charges when their goods are delivered. This change in regulations has resulted in a surge of associated email and text scams asking for customs duty payments.

Customers are contacted via false emails or texts and told they must pay customs duty to receive a valuable parcel which doesn’t exist. If you are not expecting any parcel or if you are in any doubt as to the authenticity of such messages, then do not reply. Instead, you should report any suspicious activity to HMRC immediately by emailing phishing@hmrc.gov.uk.

University students taking part-time jobs

According to HMRC, undergraduates taking part-time jobs are at increased risk of falling victim to scams – particularly if they are new to interacting with the tax authority and unfamiliar with its processes.

Between April and May 2021, more than 5,000 phone scams were reported to HMRC by 18 to 24 year olds. The advice is to be wary if you are contacted out of the blue by someone asking for money or personal information.

Mike Fell, Head of Cyber Security Operations of HMRC, said: “We see high numbers of fraudsters contacting people claiming to be from HMRC. If in doubt, our advice is – do not reply directly to anything suspicious, but contact HMRC through GOV.UK straight away and search GOV.UK for ‘HMRC scams’.

For further information and guidance about HMRC phishing scams, visit HMRC’s official web page https://www.gov.uk/topic/dealing-with-hmrc/phishing-scams.

HMRC: 323,700 tax credits customers have one month left to renew

323,700 customers are yet to renew their tax credits ahead of the deadline, with HM Revenue and Customs (HMRC) reminding them to do so by 31 July – or their payments will stop.

Tax credits help working families with targeted financial support – so it’s important that customers renew before the deadline to ensure they don’t miss out on money they’re entitled to.

Customers can renew their tax credits for free via GOV.UK or the HMRC app.

Renewing online is quick and easy. Customers can log into GOV.UK to check on the progress of their renewal, be reassured it’s being processed and know when they’ll hear back from HMRC.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There’s just one month to go for our tax credits customers to renew. It’s easy to do online or on the HMRC app – search ‘tax credits’ on GOV.UK.”

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

HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

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

· living arrangements

· childcare

· working hours, or

· income (increase or decrease)

If tax credits only, they are eligible for each payment. HMRC will contact them and issue payments automatically, with the first being made by 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.

HMRC is 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. HMRC is also warning people 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.

The department urges people to take their time and check HMRC’s advice about scams on GOV.UK.

HMRC: Get help with summer holiday childcare costs

HM Revenue and Customs (HMRC) is reminding thousands of parents and families in Scotland not to miss out on financial support that can help pay for childcare during the summer holidays.

Through Tax-Free Childcare, families can receive up to £2,000 a year per child – or £4,000 if their child is disabled – to put towards the cost of childcare. And it is available for children aged up to 11, or 17 if the child has a disability. The money can help towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes.

The UK Government will pay 20% of childcare costs by topping up the money paid into a Tax-Free Childcare account. This means for every £8 paid into the online account, families will automatically receive an additional £2 in government top-up.

More than 22,700 families in Scotland used Tax-Free Childcare in March 2022 – the highest number of families recorded using the scheme since it was launched in April 2017 – but thousands more could be missing out. Research published earlier this year by HMRC estimated that about 1.3 million families could be eligible for this UK Government support.

Parents and carers are being urged find out more about Tax-Free Childcare via the Childcare Choices website.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax-Free Childcare can make a big difference to families, helping with the bills for things like holiday clubs, nurseries, childminders and after school clubs.

“It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK.”

Helen Whately, HM Treasury’s Exchequer Secretary to the Treasury, said: “Tax-Free Childcare helps families with the cost of childcare bills but we know that thousands of parents could be missing out.

“That is why I’m encouraging families to sign up now and save on childcare costs.

“There are lots of fantastic holiday clubs and childcare providers to help working parents during the summer holidays, so now is the time to take advantage of this support.”

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.

During the school summer holidays, it is more important than ever that parents and carers are able to access the financial aid they qualify for. It can reduce their costs, help them to stay in work, or help them work more hours.

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.

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

To ensure that parents get the childcare support they are entitled to, the government is launching an awareness raising advertising campaign this week.

Council operation stops sales of illegal tobacco in Leith

Almost £26,000 worth of illegal tobacco has been taken off the shelves by the City of Edinburgh Council’s Trading Standards team and Police Scotland.

Operation CeCe is a UK wide operation targeting illicit tobacco, which is either duty evaded, counterfeit or both and the recent operations in the capital resulted in the seizure of almost £26,000 worth of stock. It included 22,600 cigarettes and 10Kg of hand rolling tobacco which in turn represented evaded duty of over £10,600 defrauded from public funds.

Acting upon intelligence received, Officers from the City of Edinburgh Council’s Trading Standards team, in partnership with officers from Police Scotland, attended a number of premises in the Leith Walk area of the city, along with tobacco detection dog Boo.

Transport and Environment Convener, Councillor Scott Arthur, said: “These recoveries are a fantastic result for our Trading Standards team who work hard to identify and tackle unsafe and illegal products. Stopping such products reaching consumers in Edinburgh and beyond is a testament to their proactive strategy and dedication.

“I am, of course, concerned that this market exists within Edinburgh. These products have not had the required duty paid on them, but also do not comply with the plain packaging, warning requirements, and where they are counterfeit, breach Trade Marks legislation. No tobacco product is safe, but the recovered goods may not comply with the requirements designed to ensure that cigarettes are self-extinguishing to prevent domestic fires.

“Illicit and Counterfeit Tobacco evades taxation and often ends up in the hands of young people, and for that reason tackling it is a key part of Edinburgh’s contribution to the Scottish Government aim to achieve a Smoke Free Generation by 2034.

“We are committed to tackling the supply of illicit tobacco, and will work with our partners in Police Scotland and HMRC wherever possible to disrupt its supply. Legitimate retail sale of tobacco is also disadvantaged where illicit supply routes exist, and we would encourage any legitimate business owners to come forward with any information.”

Consultation launched to address concerns about repayment agents

New measures to stop rip-off agents taking advantage of people and pocketing their tax repayments have been proposed by HM Revenue and Customs (HMRC).

HMRC has launched a 12-week consultation “Raising standards in tax advice: Protecting customers claiming tax repayments” to consider ways to better protect taxpayers from Repayment Agents who make routine tax claims on people’s behalf but can take up to half, or even more, of the payment.

Taxpayers can use Repayment Agents to make claims for repayments of tax, and many are happy with the service they receive. On the other hand, many taxpayers have complained that the scale of the charges are unclear or even hidden, while questions have been raised about how some agents secure agreements from customers.

The consultation proposes various ways to better protect the public from unscrupulous practices and ensure they receive the money they are entitled to, while also asking various questions to better understand the problem.

This includes seeking views on:

restricting the use of assignments, where contracts legally transfer the right to a repayment from a taxpayer to an agent
introducing measures designed to ensure taxpayers see material information about a repayment agent’s service before entering into a contractual agreement
requiring repayment agents to register with HMRC

HMRC is aware of a number of specific concerns with the industry including excessive amounts of commission charged for routine tax repayments. However, taxpayers can make a claim directly through HMRC’s free online service on GOV.UK and keep 100% of the repayment themselves.

There is also strong evidence that many taxpayers do not understand the terms they are signing up to and feel misled, some even believing they are dealing with HMRC directly rather than a third party.

Other concerns include the submission of high volume or speculative claims where no repayment is due, resulting in delays to genuine claims, as well as the use of assignments which means the repayment goes to the Repayment Agent instead of the taxpayer.

Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, said: “We want to make sure taxpayers receive their full tax claims – putting 100% of the money they are due into their pockets – and not be taken in by the unscrupulous practices of some Repayment Agents.

“The ‘Raising standards in tax advice’ consultation aims to seek views so we can better understand and address the issues to help raise standards in the tax advice market. We’re urging anyone affected to respond to the consultation and share their experiences.”

HMRC is interested in hearing the views of all tax agents, particularly those who specialise in helping taxpayers claim repayments; taxpayers who have claimed or considered claiming tax refunds through repayment agents; those who have seen adverts from repayment agents; charitable organisations; consumer groups; and accountancy professional bodies.

The consultation is now open and will run until 14 September 2022.

HMRC is also reminding taxpayers that they remain responsible for their own tax. If they do appoint an agent, they should take care to ensure they are aware of fees and the terms and conditions of service, and not to share their HMRC login details with them.

HMRC has published standards for agents and will take action against agents who breach them.

HMRC: More than 29,000 families in Scotland used Tax-Free Childcare in the last year

New Tax-Free Childcare statistics from HM Revenue and Customs (HMRC) have revealed that 29,110 families in Scotland received up to £2,000 towards the cost of their childcare during the 2021 to 2022 tax year, up from 20,330 in the previous year.

Tax-Free Childcare provides thousands of eligible working families with vital financial support towards the cost of their childcare with the government paying £240 million annually in top-up payments to families using the scheme.

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.

For every £8 paid into a Tax-Free Childcare online account, families will automatically receive an additional £2 in government top-up, and it is available for children aged up to 11, or 17 if the child has a disability.

Families receive up to £500 every three months, per child, or £1,000 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.

But hundreds of thousands of families could be missing out, with recent research published by HMRC estimating that about 1.3 million families could be eligible for this government support. Parents and carers are being urged to check their eligibility and register for Tax-Free Childcare via GOV.UK.

Across the UK, 512,415 families used Tax-Free Childcare in the 2021 to 2022 tax year, compared to 374,135 in the 2020 to 2021 tax year.

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

Helen Whately, HM Treasury’s Exchequer Secretary to the Treasury, said: “It’s fantastic that more parents are taking up Tax-Free Childcare. This support provides a helping hand with childcare costs for working families.

“With over one million families eligible, I want to encourage parents to take advantage of Tax-Free Childcare and keep the extra pounds in their pocket.”

The latest monthly comparisons for Scotland also show that a record number of families were using their Tax-Free Childcare account in March 2022 – 22,710 families compared to 15,240 in March 2021 – an increase of 7,470 families.

The scheme offers a 20% government funded top-up on money deposited into Tax-Free Childcare accounts, which can be used to pay their childcare provider. 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.

For example, if parents and carers have school-aged children and use holiday clubs during school holidays, they could deposit money into their accounts throughout the year. This means they could spread the cost of childcare while also benefitting from the 20% government top-up. Any unused money that is deposited can be simply withdrawn at any time.

Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.

Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.

Tax credits customers warned about scammers posing as HMRC

HM Revenue and Customs (HMRC) is warning tax credits customers to be aware of scams and fraudsters who imitate the department in an attempt to steal their personal information or money.

About 2.1 million tax credits customers are expected to renew their annual claims by 31 July 2022 and could be more susceptible to the tactics used by criminals who mimic government messages to make them appear authentic.

In the 12 months, to April 2022, HMRC responded to nearly 277,000 referrals of suspicious contact received from the public. Fraudsters use phone calls, text messages and emails to try and dupe individuals – often trying to rush them to make decisions. HMRC will not ring anyone out of the blue threatening arrest – only criminals do that.

Typical scam examples include:

· phone calls threatening arrest if people don’t immediately pay fictitious tax owed. Sometimes they claim that the victim’s National Insurance number has been used fraudulently

· emails or texts offering spurious tax rebates, bogus COVID-19 grants or claiming that a direct debit payment has failed

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re urging all of our customers to be really careful if they are contacted out of the blue by someone asking for money or bank details.

“There are a lot of scams out there where fraudsters are calling, texting or emailing customers claiming to be from HMRC. If you have any doubts, we suggest you don’t reply directly, and contact us straight away. Search GOV.UK for our ‘scams checklist’ and to find out ‘how to report tax scams’.”

HMRC does not charge tax credits customers to renew their annual claims and is also urging them to be alert to misleading websites or adverts designed to make them pay for government services that should be free, often charging for a connection to HMRC phone helplines.

Customers can renew their tax credits for free via GOV.UK or the HMRC app and are advised to search GOV.UK to get the genuine information and guidance.

Renewing online is quick and easy. Customers can log into GOV.UK to check the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC. Customers choosing to use the HMRC app on their smartphone can:

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

HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

· living arrangements

· childcare

· working hours, or

· income (increase or decrease)

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.

HMRC: Almost 66,500 file their Self Assessment on 6 April

Nearly 66,500 customers filed their 2021 to 2022 tax return on the first day of the new tax year – 6 April 2022 – HM Revenue and Customs (HMRC) has confirmed.

In recent years, there has been an increasing number of ‘early-bird’ customers filing their completed Self Assessment tax returns at the start of the new tax year – almost 30,000 more customers filed their returns on 6 April this year, compared to 2018 – and HMRC is encouraging others to change their filing habits and do it as soon as they can.

Customers have been able to file their 2021 to 2022 Self Assessment tax return since 6 April. And while many wait until nearer the annual filing deadline on 31 January, for some it is an opportunity to beat the last-minute rush and get it done as soon as they can, while they have the relevant information to hand.

Customers can file their tax return online. It is the quickest way to complete a Self Assessment return and it does not need to be finished in one go, as customers can access their return online anytime and save their progress until it is completed and ready to submit.

Customers who file their tax return early could benefit from:

· receiving a tax refund on any overpaid tax from the 2021 to 2022 tax year sooner. Once a customer has filed their tax return, they can check if a repayment is due via their Personal Tax Account

· managing their tax bill via direct debit. Customers can use the Budget Payment Plan service to set up weekly or monthly direct debit payments to spread the cost of any tax owed. The Self Assessment tax payment deadline for balancing payments remains unchanged – 31 January 2023

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “You don’t need to wait for the January rush to send us your tax return. More and more people are getting theirs out of the way early – search ‘Self Assessment’ on GOV.UK to get started.”

HMRC has updated the Self Assessment guide to help customers navigate through the tax return process. It includes helpful information on:

· how to get help with your tax return

· what to do when declaring furlough payments, Self-Employment Income Support Scheme grants or other COVID-19 support measures

· what information you need before you can start completing your tax return

· help with paying your Self Assessment tax bill

· what to do if you have overpaid tax and are due a refund

Earnings and payments received during the pandemic will need to be reported on the tax return meaning customers must declare any grants or payments from the COVID-19 support schemes received between 6 April 2021 and 5 April 2022 as these are taxable, including:

Self-Employment Income Support Scheme
Coronavirus Job Retention Scheme

other COVID-19 grants and support payments
any coronavirus payments incorrectly claimed

The Self Assessment deadline to file a return and pay any tax owed for the 2021 to 2022 tax year is 31 January 2023.

HMRC seizes 1 million cigarettes & 12,000 litres of alcohol from West Lothian storage unit

An investigation is underway after 1.1 million suspected illicit cigarettes and more than two dozen pallets of alcohol were seized by HM Revenue and Customs (HMRC).

Officers made the discovery inside a unit at an industrial park in Whitburn, West Lothian, on Wednesday (27 April 2022).

As well as the cigarettes, 28 pallets of alcohol were seized, including vodka, whisky and prosecco.

The goods found in the unit are believed to be worth an estimated £631,000 in lost duty and taxes.

A van and a forklift at the scene were also seized, plus £5,000 cash. No arrests have been made and enquiries are continuing.

Anyone with information about the illegal sale of cigarettes and alcohol should report it to HMRC online at gov.uk.