Brits told 'watch out' as four million HMRC letters sent out

HMRC is dispatching P800 tax calculation letters to four million Britons who might have paid too much income tax, including PAYE workers and pensioners potentially taxed in error. However, as these refund notifications arrive, fraudsters are exploiting the situation by impersonating HMRC, duping people into clicking on malicious links or divulging personal details.

The warning comes from Ocean Finance experts, following new research involving 1,500 UK adults. The company revealed that nearly two-fifths (38%) had been scammed or knew someone who had fallen victim.

A fifth (20%) expressed concerns about imposters masquerading as reputable entities such as banks, utility companies, or government bodies. The study also indicated an increasing vulnerability, with 20% of Brits admitting they might click on a dubious link, exposing them to phishing schemes.

Action Fraud's statistics show that in the year leading up to July 9, there were 367,456 reports of cybercrime and fraud in the UK, resulting in £2.8 billion lost to con artists.

Siobhan Blagbrough, financial crime manager at Ocean Finance, said: "Scammers know tax refund letters are landing this summer, which gives them the perfect cover. People waiting for a rebate are much more likely to believe a text or email asking them to 'claim now'.

"But HMRC will never call, text, or email you unexpectedly about a refund. If you're owed money, you'll either get a cheque in the post or be asked to claim it through your online tax account at Gov.uk.

"Overpayments can occur for a variety of reasons. You might have been on the incorrect tax code - this frequently happens if HMRC has outdated information about your income. It's also common if you've changed jobs and were paid by two employers in the same month. Some people discover they've overpaid after starting to receive a workplace or private pension, or if they've received benefits like Jobseeker's Allowance or Employment and Support Allowance.

"If you weren't expecting a message - don't click, don't reply, and don't share your details. Fraudsters often use pressure tactics, spoofed numbers, and fake websites to trick people. If something feels off, trust your gut and report it using HMRC's phishing scam form. A few seconds of caution could save you thousands."

What to do if you've been scammed

Contact your bank or card provider: Siobhan advised: "Your bank can block your card, investigate, and potentially refund your money. The quicker you act, the better."

Request a chargeback: Siobhan suggested: "If you paid via debit card, chargeback could help you recover your money. This process allows you to dispute an unauthorised transaction and request a refund."

Report the scam: Siobhan recommended: "Contact Action Fraud to help authorities track down criminals and prevent future scams."

Update your passwords: Siobhan advised: "If scammers got hold of your login details, change your passwords immediately. Use strong, unique passwords and enable two-factor authentication. Over half of Brits (53%) use the same password across multiple accounts, leaving them wide open to hackers."

Aaron Peake, personal finance expert at credit score service CredAbility, added: "A scam won't directly hit your credit score, but the financial damage might. Missed repayments or loans taken out in your name can leave marks on your credit file and make it harder to get a mortgage, loan, or credit card in the future. Set up spending alerts and use services like CredAbility and TotallyMoney to monitor your credit for anything suspicious."