**Caution Urged as HMRC Sends Out Tax Refund Letters Amid Surge in Scams**
The UK’s tax authority, HM Revenue & Customs (HMRC), has begun dispatching millions of P800 tax calculation letters to citizens across the country. These letters, which inform recipients of potential tax overpayments, are primarily aimed at employees and pensioners who may have been taxed incorrectly during the last financial year. However, experts are sounding the alarm as opportunistic scammers use this period to target unsuspecting individuals with convincing fraudulent messages.
Four million Britons are expected to receive correspondence from HMRC in the coming weeks, with many eagerly anticipating news of a tax rebate. Yet this anticipation creates fertile ground for cybercriminals, who are known to use official-looking emails, texts, and even phone calls urging people to “claim now” or click on suspicious links. Such tactics are designed to steal personal information or facilitate financial theft, capitalising on confusion and the expectation of genuine contact from government bodies.
Recent research conducted by Ocean Finance, involving 1,500 adults from across the UK, highlights the extent of public concern. Alarmingly, the survey revealed that over one in three respondents had either fallen victim to a scam themselves or knew someone who had. A further one in five admitted to worries about fraudsters impersonating trustworthy organisations, such as banks, power companies, or government agencies like HMRC itself.
The statistics underscore a growing problem. According to Action Fraud, between July 2024 and July 2025, there were 367,456 reports of cybercrime and fraud across the UK. In total, losses have topped a staggering £2.8 billion, illustrating just how lucrative these malicious campaigns can be. Despite widespread warnings, the Ocean Finance study found that around a fifth of participants would still be prepared to click on a suspicious link—highlighting just how vulnerable many remain to sophisticated phishing attempts.
Financial crime manager at Ocean Finance, Siobhan Blagbrough, emphasised the danger at this time of year: “Fraudsters are aware that tax rebate letters are being sent out this summer, which provides perfect cover for their scams.” She went on to note that HMRC will never contact taxpayers unexpectedly by phone, text, or email to discuss a refund. Instead, those legitimately owed money are either sent a cheque by post or instructed to use their secure online Government Gateway account on the official Gov.uk website.
Overpayments can arise for various reasons, including being placed on the wrong tax code due to out-of-date income details, commencing employment with two different employers in the same month, or changes in pension or benefit status. Blagbrough advised, “If you receive an unexpected message, don’t click on any links, don’t respond, and don’t share your personal details. Scammers frequently employ pressure tactics, fake numbers, and plausible websites to deceive potential victims. If anything feels unusual, err on the side of caution and report the incident to HMRC directly using their phishing reporting tools.”
Should someone fall victim to a scam, there are immediate steps to take. First, individuals are advised to contact their bank or card provider without delay, as banks can act swiftly to block cards, investigate the incident, and potentially refund lost funds. For payments made with a debit card, the chargeback process may help recover the lost amounts by disputing the unauthorised transaction.
Further, reporting the crime to Action Fraud is essential in assisting authorities with their efforts to track down perpetrators and halt future scams. Victims should also update any compromised passwords, choosing strong, unique credentials and enabling two-factor authentication for added security. With data suggesting over half of Britons use the same password for multiple accounts, there remains a significant risk of further exploitation.
Aaron Peake, a personal finance specialist from CredAbility, added a warning about the broader implications of fraud: “While falling for a scam may not directly affect your credit score, the ensuing financial fallout can. Missed loan or credit card repayments, or unauthorised loans taken out in your name, can all affect your ability to secure future lending, whether a mortgage or personal loan. Make use of credit monitoring services and alerts to spot any suspicious activity on your record.”
As millions await potentially welcome fiscal news from HMRC, experts are urging everyone to remain vigilant. The advice is clear: never trust unsolicited messages requesting your details, and if in doubt, contact HMRC or your financial provider directly through trusted channels. A moment of hesitation, experts say, could prevent the loss of thousands of pounds and provide vital protection against an ever-growing tide of financial crime.