Beware of HMRC Scam Letters: How to Spot and Avoid Them (Examples)
These days, scams are on the rise, especially HMRC frauds. Many people have lost thousands of pounds to these anonymous scammers.
In October 2023, as tax return season approached, HMRC warned 12 million taxpayers to be on the lookout for tax fraud. This came after more than 130,000 complaints were reported by September 2023. By February 2024, fraud cases hit a record high, with over 200,000 reports. The problem is clear and growing, as scammers keep changing their tactics to trick people.
This blog will show you some examples of HMRC scam letters and explain some of the common HMRC scam tactics.
What are the HMRC Scam Letters?
HMRC scam letters are fake letters that claim to be from HMRC (Her Majesty’s Revenue and Customs) but are actually sent by scammers. These letters try to trick you into giving away personal information, like bank details or payments, by pretending you owe money or are due a tax refund. They often look very official, using HMRC logos and similar language, making it hard to tell they are fake.
Identify the Red Flags
Identifying the warning signs of HMRC scam letters, like detecting any fraud, requires attention to detail. Typical indications to watch out for are:
- Quality of content
- Urgent or menacing language
- Expectation of requests
- Change of bank details
Original HMRC letters adhere to precise criteria, and understanding them will help you differentiate between genuine and fraudulent correspondence. Let's take a closer look at each red flag:
Quality of content
One of the easiest ways to spot a scam letter is by checking the quality of the content. Look for things like spelling mistakes, bad grammar, poor design, and incorrect or outdated addresses. If the letter looks unprofessional or sloppy, it’s likely a scam. You can find a list of official HMRC contacts on their website to double-check.
Urgent or menacing language
The use of urgent appeals to action is a huge red flag. HMRC will not require immediate payment in their first correspondence, even if you owe money. Authentic HMRC letters will usually encourage you to discuss any unpaid sums.
Expectation of requests
People often send scam HMRC letters around important tax deadlines. Be extra careful during these times, and keep track of any official contact you expect from HMRC or your accountant. You can also check HMRC’s website to see examples of real letters they’ve recently sent out.
Change of bank details
Be cautious of any letters claiming you need to update your bank details. Scammers often send fake letters pretending to be from HMRC, asking you to change payment information to a new account, which actually belongs to the scammer. This can lead to financial loss and leave your real tax payments unpaid.
Real-Life Examples HMRC Scam Letters
Following are some examples of scam HMRC letters to give you an idea:
Example 1: Phishing email and misleading website
An example of a scam email that is directed to a phishing website via hyperlink.
Example 2: HMRC Scam Letters Targeting Businesses
Simon Boxall, Tax Director at Ward Williams, is warning business owners about a clever scam where fake letters claim to be from HMRC, asking for sensitive information under the guise of government programs.
Here are the main things to watch out for when dealing with tax scams:
- Fake HMRC Letterhead: Always check that the email address ends in @hmrc.gov.uk before trusting any communication claiming to be from HMRC.
- Suspicious Document Requests: Be cautious if you're asked for things like bank statements, VAT returns, or personal IDs from sources you don’t recognise.
- Potential Consequences: Not being careful could lead to identity theft and losing money.
Example 3: Company UPR scam
Steve Collins stated this scam in which he says:
We set up a new company for a client and received this letter. It looks EXACTLY like the HMRC letter to advise of UTR, but it talks about a UPR (?). Of course, the issue is that you need to make a payment by logging into their website or scanning a QR code.
The amount to pay is small enough that a lot of clients would probably pay it rather than risk an issue with HMRC. If you are setting up companies for clients' home/office addresses, PLEASE make them aware of this!
Example 4: Financial information verification scam
Joanne MunroJoanne Munro, a business owner, stated:
"My accountant told me that if I ever receive a letter like that, it’s probably a scam. He advised me to contact him directly if any 'HMRC' letter asks for proof of income or identity for verification.
There were small signs that it was fake, but we’re being extra careful now. For someone new to business and not on the lookout, it would be easy to fall for something like this."
Example 5: Agent services issues scam
Bottomline
HMRC scam letters are a real concern, but there are steps you can take to stay safe and services that can help. Action Fraud, a 24-hour service run by the UK Police, allows you to report fraud and scams. By staying alert and cautious, you can protect your business and personal information from scammers.
FAQs
1. How can I tell the difference between a real HMRC letter and a scam letter?
A genuine HMRC letter will always include your unique taxpayer reference (UTR) or tax reference number. Look out for spelling mistakes, grammatical errors, or issues with the HMRC logo or letterhead; genuine letters are professional and free of such flaws.
2. What should I do if I get a suspicious HMRC letter?
If you receive a suspicious HMRC letter, don’t respond directly to the contact details provided in the letter. Instead, verify its authenticity by contacting HMRC through official channels, such as the contact information on their website or by calling their helpline.
3. Will HMRC ever request sensitive information or demand urgent payments via unsolicited letters or emails?
No, HMRC will never ask for sensitive information or demand immediate payment through unsolicited letters or emails. If you receive such a request, it's likely a scam.
4. How can I report a suspicious HMRC letter or fraud attempt?
You can report suspicious scam HMRC letters to HMRC's phishing team or to Action Fraud in the UK. By reporting these scams, you help authorities take action against fraudsters and protect others from falling victim.