People filling out their tax returns are being warned to watch out for scams as the self-assessment deadline approaches. Fraudsters are targeting people with bogus offers of tax refunds or demanding payments to get hold of personal information and banking details, HM Revenue and Customs (HMRC) warned.
Millions of people are due to complete their self-assessment tax return and pay any tax owed by January 31 2025. HMRC said around half of scam reports in the past year involved fake tax rebate claims, an increase of 16.7 per cent, with 144,298 received between November 2023 and October 2024, up from 123, 596 in the previous 12-month period.
HMRC said that it will never leave voicemails threatening legal action or arrest, or ask for personal or financial information over text message.
It said people should check the advice on GOV.UK if they receive communications claiming to be from HMRC and asking for their personal information or offering a rebate.
Kelly Paterson, chief security officer at HMRC, said: “With millions of people filing their self-assessment return before January’s deadline, we’re warning everyone to be wary of emails promising tax refunds.
“Being vigilant helps you spot potential scams. And reporting anything suspicious helps us stop criminal activity and to protect you and others who could have received similar bogus communication.
“Our advice remains unchanged. Don’t rush into anything, take your time and check ‘HMRC scams advice’ on GOV.UK.”
Anyone who is due a refund from HMRC can claim it via their online HMRC account or the free and secure HMRC app.
Phishing attempts can be reported to HMRC by forwarding emails to [email protected], reporting tax scam phone calls to HMRC on GOV.UK and forwarding suspect texts claiming to be from HMRC to 60599.
There are plenty of myths about who needs to file a Self Assessment return before the January 31, 2025 deadline and HMRC has debunked some of the most common ones.
Five Self Assessment myths debunked
Myth 1: HMRC hasn’t been in touch, so I don’t need to file a tax return
Reality: It’s the individual’s responsibility to determine if they need to complete a tax return for the 2023 to 2024 tax year. There are many reasons why someone might need to register for Self Assessment and file a return.
Who might need to complete a Self Assessment for 2023/24
Taxpayers may need to complete a tax return if they:
- are newly self-employed and have earned gross income over £1,000
- earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits
- are a new partner in a business partnership
- have received any untaxed income over £2,500
- receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000
More information can be found on GOV.UK and anyone who is unsure if they need to file a Self Assessment can use the free online tool on GOV.UK to check.
Myth 2: I have to pay the tax at the same time as filing my return
Reality: False. Even if someone files their return today, the deadline for customers to pay any tax owed for the 2023 to 2024 tax year is January 31, 2025. Customers may also be able to set up a Budget Payment Plan to help spread the cost of their next Self Assessment tax bill, by making weekly or monthly direct debit payments towards it in advance.
Myth 3: I don’t owe any tax, so I don’t need to file a return
Reality: Even if a customer doesn’t owe tax, they may still need to file a Self Assessment return to claim a tax refund, claim tax relief on business expenses, charitable donations, pension contributions, or to pay voluntary Class 2 National Insurance Contributions to protect their entitlement to certain benefits and the State Pension.
Myth 4: HMRC will take me out of Self Assessment if I no longer need to file a return
Reality: It is important customers tell us they’ve either stopped being self-employed or they don’t need to fill in a return, particularly if they have received a notice to file. If they don’t, HMRC will keep writing to them to remind them to file their return and we may charge a penalty.
Customers may not need to complete a tax return if they have stopped renting out property, no longer need to pay the High Income Child Benefit Charge, or their income has dropped below the £150,000 threshold and have no other reason to complete a tax return.
If customers think they no longer need to complete a tax return for the 2023 to 2024 tax year, they should tell HMRC online as soon as their circumstances change. Customers can watch HMRC’s YouTube videos on stopping Self Assessment to guide them through the process.
Myth 5: HMRC has launched a crackdown on people selling their possessions online and now I’ll have to file a Self Assessment return and pay tax on the items I sold after clearing out the attic
Reality: Despite speculation online earlier this year, tax rules have not changed in this area. If someone has sold old clothes, books, CDs and other personal items through online marketplaces, they do not need to file a Self Assessment and pay Income Tax on the sales. HMRC’s guidance on selling online and paying taxes can be found on GOV.UK.
HMRC urges customers to file their return early to provide peace of mind and to also allow time to consider opportunities to spread the cost of their tax bill, claim refunds earlier and avoid costly errors caused by rushing.
Customers need to keep records to fill in their tax return correctly and they may be asked for documents if HMRC checks their return. Penalties may be issued if records are not accurate, complete and readable.
Self-employed workers must also keep records for their business income, outgoings and make sure they’re registered with HMRC as self-employed.