HM Revenue and Customs (HMRC) has issued a fresh urgent warning to taxpayers across the United Kingdom, advising them to remain vigilant against a prevalent scam. The Labour Party government's tax authority has specifically urged people not to click on suspicious links claiming to offer tax refunds.
Increased Reports of Scams
Taking to social media platform X, formerly known as Twitter, HMRC stated that it is receiving a growing number of reports from customers who have been contacted by scammers falsely asserting that they are entitled to a tax refund. The official alert read: "SCAM ALERT. We're receiving increased reports of customers being contacted by scammers claiming they are due a tax refund. Always take the time to stop and think if the request is genuine before sharing personal information or clicking on any links. If you're unsure, don't click on any links and report it to us."
How to Verify Refunds Safely
HMRC emphasised that to check if a tax refund is genuinely due, taxpayers should log into their HMRC online services account via the official GOV UK website or use the HMRC app. The authority added: "For more information about how to stay safe online and report scams to us, click the link below."
Common Reasons for Tax Refunds
There are several legitimate reasons why someone might be due a tax refund. The most common is overpayment of tax on employment or savings income. The method of claiming a refund depends on whether the individual is taxed under PAYE, is self-employed, or is due a refund on savings income.
- Savings Income Refunds: If you are due a refund of tax on savings, you would normally use form R40 to claim. This might apply if you are not in paid work or are a pensioner on low income. For amounts over £50, you may be able to apply before the end of the tax year. However, this is unlikely after 6 April 2016 as savings interest is not normally taxed at source.
- P800 Tax Calculations: If you are a pensioner or employee and receive a P800 tax calculation showing a refund, it is important to verify that the figures are correct.
- Mid-Year Claims: Employees who stop working part-way through the year and are not claiming taxable benefits can use form P50 to claim a refund during the tax year.
- Pension Lump Sums: If you take a lump sum instead of a small pension (commuting the pension), you may overpay tax and be due a refund.
- Self-Employed: Self-employed individuals normally submit a self-assessment tax return each year. If overpaid tax is shown on the tax calculation, HMRC should automatically send any refund due once the return is processed, whether submitted online or on paper.
HMRC continues to urge taxpayers to remain cautious and never share personal information or click on links from unsolicited messages. Any suspicious contact should be reported to HMRC immediately.
