Fake HMRC Emails and Letters on the Rise: Are You the Next Target?

At The Tax Faculty, we've recently seen a surge in fake emails and letters claiming to be from HMRC, and it’s not just our clients who are being targeted. Even some of our own colleagues and fellow tax professionals have been targeted by these increasingly convincing scams.

So, if experienced tax professionals are taking a second to question authenticity, then really it’s no surprise that scammers are successfully tricking others into handing over sensitive financial information.

In a recent newsworthy case, a taxpayer reported receiving an email that appeared to be from Royal Mail, claiming that HMRC had tried to deliver a large letter that required rescheduling. The email came with an official-looking "Reschedule Now" button and was signed off by "The Royal Mail Team," causing confusion and concern.

The email looked entirely legitimate and once the reschedule button was clicked, the recipient was then taken to another page where they were requested to add sensitive personal information. The reality? It was a scam.

A Growing Problem Across the UK

Scammers are becoming increasingly sophisticated, and they're targeting more people across the UK using fake HMRC communications preying on the anxiety or fear that many of us have about owing money to or simply not doing the right thing in relation to HMRC. These scam attempts can come through various channels. Here are a few to watch out for:

1. Emails: Phishing scams disguised as official HMRC correspondence asking for personal information or threatening legal action if payment is not made immediately.

2. Letters: Fake letters sent to homes that appear authentic, even including HMRC logos, demanding payments for supposed tax debts.

3. Text Messages: SMS phishing (or ‘smishing’) where scammers claim that HMRC owes you a tax refund, directing you to a fraudulent website to steal your bank details.

4. Phone Calls: Increasing reports of people receiving phone calls from fraudsters pretending to be HMRC, often using scare tactics, such as threats of arrest for unpaid taxes.

According to recent reports, HMRC phishing attacks rose by 87% during the last tax season, and it's not just limited to emails. Fraudsters are exploiting any communication tool that gives them access to unsuspecting individuals.

Real Office Experiences: How Our Team Handled It

Several of our team members have personally received these scam emails and letters. Initially, there was a moment of panic when they thought they might owe HMRC money, but quickly, the rational head took over.

They examined the emails carefully, noticing tell-tale signs of fraud, such as odd email addresses and urgent demands that didn’t quite match how HMRC usually communicates. We felt it might be a good idea to share with you some of the red-flags our colleagues identified when trying to identify whether the correspondence was real or fake.

How to Identify Fake HMRC Communications

Don’t panic—while scammers are getting more convincing, there are several things you can look out for when determining whether a communication is genuinely from HMRC.

Here’s what to watch out for:

• HMRC will never ask for personal or financial information through email or text.

• Verify the email address: Fake emails often come from addresses that look legitimate but have small variations like extra letters or numbers.

• Check for urgent demands: Be wary of any communication demanding immediate payment or threatening legal action, especially if it’s your first notice.

• Poor grammar or spelling mistakes: HMRC’s official communications are always well-written. Any errors are an immediate red flag.

• Don’t click on links: If you receive an email with a suspicious link, do not click it. Always log into your official HMRC account through their website.

• HMRC never uses WhatsApp or social media to contact taxpayers.

What to Do If You Think You’ve Received a Scam

If you suspect you've received a scam email, letter, or text from someone pretending to be HMRC, follow these steps:

• Do not respond or provide any personal information.

• Forward the email to HMRC at phishing@hmrc.gov.uk or report it to HMRC’s fraud team.

• Delete the email or message after reporting.

• Contact HMRC directly through their official contact channels to verify whether any genuine action is needed on your account.

• Use HMRC’s online tools to report suspicious emails or texts and check whether any known scams are being circulated.

With scammers constantly adapting their tactics, it's more important than ever to stay vigilant. If you ever have any doubts about communication you’ve received from HMRC, don’t hesitate to contact your accountant or HMRC directly.

Always take a moment to verify before responding—it really could save you from falling into a costly trap.

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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