Millions at Risk as Tax Credits Renewal Deadline Looms
Around 2.1 million UK tax credits customers face a crucial July 31, 2022 deadline to renew their claims. But beware – scammers are circling, using fake government messages to trick vulnerable taxpayers.
HMRC Warns: Don’t Fall for Tax Credit Scams
Last year alone, HMRC dealt with nearly 277,000 reports of suspicious contacts. Fraudsters bombard victims with threatening phone calls, texts, and emails, pushing for rushed decisions. HMRC stresses it will never call out of the blue threatening arrest – that’s a scam!
- Phone scams: Fake arrest threats or claims your National Insurance number’s been used fraudulently.
- Emails/texts: Fake tax rebates, bogus COVID-19 grants, or warnings about failed direct debit payments.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“We’re urging customers to be extra cautious if contacted out of the blue asking for money or bank details. Don’t reply directly if unsure – contact us immediately. Check GOV.UK for our scams checklist and to report suspicious activity.”
How to Renew Safely and Avoid Fake Fees
Renewing is free. HMRC never charges for tax credits renewal, but beware of dodgy websites or adverts that sneak in charges or premium phone line fees.
Customers can:
- 123 explaining how to manage your tax credits via the app.
Keep HMRC Updated – Avoid Penalties
If your circumstances change, you MUST tell HMRC immediately. Changes could impact your payments and include:
- Living arrangements
- Childcare
- Working hours
- Income changes (up or down)
Report updates promptly to avoid penalties or overpayments.
Tax Credits Are Being Phased Out – What’s Next?
Tax credits will be scrapped by the end of 2024, replaced by 1. Many might be better off switching, but beware – once you move, you can’t revert to tax credits.
Use an independent benefits calculator to check your best option. Get advice before applying early to avoid costly mistakes.
