Let’s get into the nitty gritty, shall we?
Got a text claiming HMRC owes you £547 and you just need to click a link? Here’s the brutal truth - it’s almost certainly a scam, and thousands of people fall for these fake refund claims every single day. In fact, millions of Self Assessment customers are targeted by criminals using fake refunds as bait, and some scams even threaten arrest to scare victims into handing over their personal information.
Tax refund scams have become incredibly sophisticated, with fraudsters copying HMRC branding perfectly and using convincing language that makes even savvy people second-guess themselves.
I’ve seen clients lose hundreds of pounds and have their identities stolen through these scams. Let me show you exactly how to spot the fakes and protect yourself from becoming another victim.
What Are Tax Refund Scams and Why They're Everywhere
Tax refund scams are fraudulent messages designed to steal your personal information or money by pretending to be from HMRC. Scammers know that most people have overpaid tax at some point, making refund claims seem believable.
These scams explode during certain times of year - particularly around Self Assessment deadlines in January, after the end of the tax year in April, and during summer when people are thinking about holidays they could afford with a windfall. Fake tax refund claims and fake tax refunds are especially common around these deadlines, with scammers often threatening legal action or penalties to pressure victims into responding quickly.
The sophistication has increased dramatically. Early scams were obviously fake with poor spelling and dodgy grammar. Now they use official HMRC logos, correct terminology, and even reference real tax procedures to seem legitimate.
I remember the first time I received one of these texts even knowing what to look for, I had a moment of “what if this is real?” That’s exactly the reaction scammers are counting on.
Red Flags: How to Spot Fake HMRC Communications
HMRC has very specific ways of communicating with taxpayers, and understanding these patterns helps you spot fakes immediately. Legitimate HMRC communications follow strict protocols that scammers often get wrong.
Immediate red flags in messages:
- Asking you to click links to claim refunds
- Requesting bank details, passwords, or PINs
- Creating urgency with deadlines like “claim within 24 hours”
- Mentioning specific refund amounts you weren’t expecting
- Coming via text message or email without prior correspondence
- Receiving suspicious texts or suspicious emails claiming to be from HMRC
- Getting scam emails with urgent requests for information
Stay alert let alarm bells ring if you receive such suspicious emails, scam emails, or suspicious texts. Always verify the authenticity of any communication before responding.
Real HMRC refunds work completely differently. If they owe you money, they’ll usually send a cheque automatically or pay it into an account they already have on file. They don’t send surprise notifications about unexpected refunds.
The language is often the giveaway too. Phrases like “final notice,” “immediate action required,” or “suspended account” simply aren’t how HMRC communicates. They’re formal but not threatening in legitimate correspondence.
Common Tax Refund Scam Formats and Examples
Text message scams are probably the most common format I see. They typically follow a pattern: “HMRC: You are entitled to a tax refund of £XXX. To claim your refund visit: [dodgy link].”
Typical scam formats:
- SMS texts with links to fake HMRC websites
- Emails with official-looking HMRC branding and attachments
- Phone calls claiming to be from HMRC about urgent refunds (never trust caller ID, as scammers can spoof official numbers)
- Letters posted to your address (less common but increasing)
The fake websites these links lead to are incredibly convincing. They’ll ask for your National Insurance number, bank details, payment information, and even security questions. Scammers are trying to steal personal and banking information, and may request payment details to steal personal data or commit fraud. Once scammers have this information, they can attempt to access your real HMRC account.
I’ve seen these fake sites that look identical to the real Government Gateway login page. The only difference might be a slightly wrong web address like “gov-uk.com“ instead of “gov.uk.”
How Scammers Get Your Information
Understanding how scammers obtained your contact details helps you assess the credibility of any message. They don’t necessarily target you specifically they send thousands of messages hoping some will land with people who are genuinely expecting refunds.
How scammers get your details:
- Data breaches from other companies or websites
- Social media information that’s publicly available
- Phone directories and electoral roll data
- Previous successful scams building databases
- Random generation of phone numbers and email addresses
The fact that a scammer knows your name or address doesn’t make their refund claim legitimate. This information is easier to obtain than most people realise, and scammers use it to make their messages seem more credible.
Sometimes they’ll reference real events like “following your recent tax return” during Self Assessment season. This isn’t because they know about your specific return - they’re playing the odds that many recipients will have recently filed returns. Scammers may also claim you owe money from a previous year to make their messages appear more convincing.
What Happens If You Fall for a Tax Refund Scam
The consequences of falling for these scams can be serious and long-lasting. It’s not just about losing the money you might pay upfront scammers can use your information for identity theft and ongoing fraud.
The identity theft aspect is particularly nasty. With your National Insurance number and personal details, scammers can apply for credit in your name, redirect your post, or even file fraudulent tax returns. Scammers may also open accounts or loans in your name, which can result in unwanted interest charges accumulating on debts you didn't create.
I’ve worked with clients who’ve spent months trying to undo the damage from these scams. Credit reports need cleaning up, accounts need securing, and sometimes you have to prove to HMRC that fraudulent activity wasn’t actually you.
The emotional impact shouldn’t be underestimated either. Falling for a scam can be embarrassing and stressful, especially when dealing with the aftermath of financial fraud.
Real HMRC Refund Processes vs Scam Claims
Understanding how legitimate HMRC refunds actually work makes it much easier to spot the fakes. Real refunds follow predictable processes that scammers can’t replicate properly.
To ensure you are using the correct process for claiming refunds related to self assessment tax and self assessment tax returns, always follow official guidance provided by HMRC.
If HMRC genuinely owes you money, they’ll either send a cheque to your registered address or pay it electronically to a bank account you’ve previously provided. They don’t send surprise notifications about refunds you weren’t expecting.
Real refund communications come through official channels - letters to your registered address or secure messages in your Government Gateway account. They don’t arrive via text message or unsolicited email.
Protecting Yourself from Tax Refund Fraud
Prevention is always better than dealing with the aftermath of fraud. Simple security habits protect you from most tax refund scams without making your life complicated.
If you receive a suspicious message, don’t engage with it at all. Don’t click links, don’t reply, and don’t call any phone numbers provided. Forward the message to HMRC’s reporting address and then delete it.
Customers are encouraged to seek support and advice from official HMRC channels and to report any suspicious activity or scams encountered. HMRC runs ongoing campaigns to educate customers about scam prevention and to help keep your information safe.
Your Government Gateway account is your secure way to check if HMRC genuinely owes you money. If there’s no refund showing there, any messages claiming otherwise are definitely scams.
What to Do If You've Already Been Targeted
If you’ve received scam messages but haven’t responded, you’re fine - just report and delete them. But if you’ve already provided information or paid money, you need to act quickly to limit the damage.
Filing early or filing your self assessment tax returns early can help protect your revenue and reduce the risk of falling victim to scams, as early filers are less likely to be targeted and can secure their refunds sooner.
Don’t be embarrassed about reporting scams. HMRC and Action Fraud see thousands of these cases and won’t judge you. The sooner you report it, the better chance you have of preventing further damage.
If scammers have accessed your bank account, your bank can often reverse fraudulent transactions if you report them quickly. Most banks have dedicated fraud teams who deal with this daily.
Legitimate Ways to Check for Real Tax Refunds
If scam messages have made you wonder whether HMRC actually does owe you money, there are safe ways to check your genuine tax position without risking fraud.
Your Government Gateway account shows your current tax position, including any refunds due. If HMRC owes you money, it’ll be clearly displayed there along with explanations of how the refund was calculated. Always verify any tax rebate offers to ensure they are genuine and not part of a scam.
For employed people, P800 tax calculations sent after the end of the tax year often show refunds due. These come as official letters, not text messages, and don’t require immediate action through links.
Final Thoughts
Tax refund scams are getting more sophisticated, but understanding how real HMRC processes work makes them easy to spot. When in doubt, ignore suspicious messages and check your tax position through official channels.
Remember, legitimate refunds don't require urgent action or clicking mysterious links. If you're managing your tax affairs properly and staying on top of your Self Assessment obligations, our free self-assessment app helps you track your real tax position without falling for scam claims.
