2.1 Million Tax Credit Users Warned of Scammers Ahead of July Deadline
Millions of tax credits claimants face a surge in scam attacks as they rush to renew their claims by 31 July 2022. About 2.1 million people must act fast, but fraudsters are ready to pounce—posing as HMRC and using fake calls, texts, and emails to con victims.
HMRC Cracks Down on Scam Calls and Messages
HMRC dealt with nearly 277,000 reports of suspicious contact in the year leading to April 2022. Scammers often ring threatening arrest for unpaid tax or claim your National Insurance number is at risk. They also send messages about fake tax rebates, bogus COVID-19 grants, or failed direct debits, all designed to steal your cash or bank details.
“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,” said Myrtle Lloyd, HMRC’s Director General for Customer Services. “Anyone claiming to be HMRC and threatening arrest on the spot is a fraudster. If in doubt, don’t reply. Instead, visit GOV.UK for the official scams checklist and report suspicious contacts immediately.”
How to Spot and Avoid Tax Credit Scams
- HMRC will never call out of the blue and threaten arrest.
- They do not charge for renewing tax credits claims—watch out for fake websites or adverts trying to make you pay.
- Renew your tax credits free via the official GOV.UK website or the HMRC app.
- Use the HMRC app to renew claims, update details, check payments, and track earnings.
Renewing online is quick and simple. Customers can log in to GOV.UK to check renewal progress and know when HMRC will get back to them. The HMRC app even offers handy tools to manage claims on the go.
Important: Keep HMRC Updated on Changes
If your circumstances change, it can affect your tax credits payments. Be sure to report changes in:
- Living arrangements
- Childcare
- Working hours
- Income (up or down)
Failing to update HMRC could cost you money and lead to penalties.
Tax Credits are Phasing Out: Switch to Universal Credit
Tax credits will end by the end of 2024, replaced by Universal Credit. Many claimants could be better off switching, but it pays to check first. Use an independent benefits calculator to see if Universal Credit pays you more.
But be warned—once you switch to Universal Credit, there’s no going back to tax credits or the benefits it replaces. Get independent advice before applying.
