Don’t fall for tax rebate phishing scam emails
Q I KEEP getting emails which say one in three taxpayers are due a refund from HMRC and that I could pick up as much as £8,000.
But my employer says I’ve paid the correct tax, and should not supply my details to these websites.
I have an ordinary job, paying about £28,000 a year and I don’t have any investments or serious savings. Should I explore what is on offer? Edward J A THERE are lots of mass emails like those you received. Some are “phishing scams”, designed to get bank and other personal details from you.
Others come from tax refund agents, who can help you get a refund, if you are owed one, for a fee.
There is no source quoted for the “one in three taxpayers due a refund” headline. It’s not a figure HMRC or major tax accountants recognise.
When you click onto the website the email is publicising, this claim is absent.
As you are on PAYE, there are generally few workrelated items you can claim.
There are some small allowances for uniforms, work clothing and tools but only if your employer does not provide these.
In most cases where this applies, your boss will already adjust the PAYE.
In any case, the amounts are small – sometimes as little as £20 in cash terms.
The Which Tax website (which.co.uk/money/tax) has details of what you can claim and how to do it yourself. The problem with legitimate tax refund companies is cost. These vary and often are not evident before you put in your details for a “free estimate”.
The Low Income Tax Reform Group, a charity, says tax refund organisations can charge both a fixed fee and a percentage for their work, sometimes wiping out or even outweighing the value of the tax rebate.
So while there is an allowance for using your bicycle for work (although not for travelling to and fro), it’s unlikely to be enough to pay the fees.
The charity also warns against signing a form of authority – sometimes called form 64-8 – as this allows them to keep you on their books year after year, and possibly charge you.
While they may not be useful in your case, tax refund companies can help students and others from abroad on PAYE but not earning enough in a year to claim refunds after they go home.