HM Revenue and Customs (HMRC) is warning everyone claiming Tax Credits to be aware of scams and fraudsters who imitate the Department in an attempt to steal their personal information or money - especially at this time of year when renewals are due.
Some 2.1 million people claiming Working Tax Credits and Child Tax Credits are expected to renew their annual claims by July 31, 2022 and could be more susceptible to the tactics used by criminals who mimic UK Government messages to make them appear authentic, HMRC said.
In the 12 months, to April 2022, HMRC responded to nearly 277,000 referrals of suspicious contact received from the public.
Fraudsters use phone calls, text messages and emails to try and dupe individuals, often trying to rush them to make decisions, but HMRC has made it clear that it will not call anyone out of the blue threatening arrest – only criminals do that.
Common examples of scam include:
- Phone calls threatening arrest if people don’t immediately pay fictitious tax owed - sometimes they claim that the victim’s National Insurance number has been used fraudulently
- Emails or texts offering spurious tax rebates, bogus Covid-19 grants or claiming that a direct debit payment has failed
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re urging all of our customers to be really careful if they are contacted out of the blue by someone asking for money or bank details.
“There are a lot of scams out there where fraudsters are calling, texting or emailing customers claiming to be from HMRC.
“If you have any doubts, we suggest you don’t reply directly, and contact us straight away. Search GOV.UK for our ‘scams checklist’ and to find out ‘how to report tax scams’.”
HMRC does not charge Tax Credits customers to renew their annual claims and is also urging people to be alert to misleading websites or adverts designed to make them pay for Uk Government services that should be free, often charging for a connection to HMRC phone helplines.
Customers can renew their Tax Credits for free via GOV.UK or the HMRC app and are advised to search GOV.UK to get the genuine information and guidance.
How to renew Tax Credits
Renewing online is quick and easy.
Customers can log into GOV.UK to check the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC.
Customers choosing to use the HMRC app on their smartphone can:
- Renew their Tax Credits
- Update changes to their claim
- Check their Tax Credits payments schedule, and find out how much they have earned for the year
HMRC has also released a video to explain how Tax Credits customers can use the HMRC app to view, manage and update their details - you can view it on YouTube here.
Change of circumstances
If there is a change in a customer’s circumstances that could affect their Tax Credits claim, they must report the changes to HMRC.
Circumstances that could affect Tax Credits payments include changes to:
- Living arrangements
- Childcare
- Working hours
- An increase or decrease in income
People claiming Tax Credits should be aware by now that legacy benefits are ending and will be replaced by Universal Credit by the end of 2024.
This means that if you are reporting a change in your renewal, you may trigger a move to Universal Credit.
While the UK Government calculations project that some 1.4million people will be better off on Universal Credit, some 900,000 will be worse off and 300,000 will see no difference.
Use a benefits calculator to check how much support you may be eligible for on Universal Credit and seek independent, professional advice from a non-profit organisation to get a clearer idea of how your payments may be affected, before making any decisions.
To keep up to date with the latest benefits news, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
