UK Fake Tax Returns

Understanding Fake Tax Returns

Fake tax returns are fraudulent submissions to HM Revenue and Customs (HMRC) that contain false information, such as inflated income, fabricated expenses, or incorrect tax credits, to secure undeserved refunds or evade taxes. These schemes are often promoted by scammers posing as tax professionals or through misleading online advertisements, particularly around the Self Assessment deadline of 31 January each year.

HMRC has reported a significant rise in scam attempts, with 144,298 scam referrals recorded between November 2023 and October 2024, a 16.7% increase from the previous year. Fraudsters exploit the complexity of tax filing to trick individuals and businesses into providing personal or financial details or filing incorrect returns.

Common Scams Involving Fake Tax Returns

• • Bogus Refund Offers: Scammers send emails, texts, or letters claiming you’re due a tax refund, often urging you to click links or provide bank details. HMRC never contacts taxpayers about refunds via email or text; genuine refunds are processed through post or your HMRC online account.

• • Fake Tax Preparers: Fraudulent firms or individuals promise large refunds by submitting false claims on your behalf. Some charge high fees or take a portion of the refund, leaving victims with penalties or debts. Reviews of companies like Tax Returned Limited highlight complaints of unauthorized claims and excessive fees.

• • Phishing for Data: Fraudsters impersonate HMRC, requesting sensitive information like National Insurance numbers or bank details through fake letters or websites. In 2024, 71,832 scam reports were linked to fake tax rebate claims.

• Threatening Letters: Scams like fake HMRC letters demanding financial verification (e.g., bank statements or IDs) use threats of business freezes or investigations to coerce compliance.