HMRC has issued an alert to tax credit customers to be on their guard against new tactics being used by unscrupulous fraudsters.

The warning contains details of a number of new scams reported that aim to trick people into handing over money or personal information.

Criminals use deadlines – like the tax credits renewal deadline on 31 July – to target their victims and the department is warning around 1.5 million tax credits customers to be on the look-out for scams that mimic government communications to make them appear genuine.

Typical scam examples include:

• emails or texts claiming an individual’s details aren’t up to date and that they risk losing out on payments that are due to them.
• emails or texts claiming that a direct debit payment hasn’t ‘gone through’.
• phone calls threatening arrest if people don’t immediately pay fake tax owed.
• claims that the victim’s National Insurance number has been used in fraud.
• emails or texts offering spurious tax rebates or bogus grants or support.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax scams come in many forms and we’re urging customers to be alert to the tactics used by fraudsters and never to let yourselves be rushed.

“If someone contacts you saying they’re from HMRC and asks you to give personal information or urgently transfer money, be on your guard. Search ‘HMRC scams’ advice on GOV.UK to find out how to report scams and help us fight these crimes.”

Scam messages can be convincing, but HMRC will never ring anyone out of the blue making threats or asking them to transfer money.

According to the National Cyber Security Centre, HMRC was the third most spoofed government body in 2022, behind the NHS and TV Licensing.

HMRC is also urging tax credit customers to be alert to misleading websites or adverts asking them to pay for government services which are free, often by charging for a connection to HMRC helplines.

HMRC is currently sending out tax credits renewal packs to customers and is reminding anyone who has not received theirs to wait until after 15 June before contacting HMRC.

Customers can renew their tax credits for free via GOV.UK or the HMRC app. Help and support is available on GOV.UK to help renew tax credits claim.

Households using prepayment meters have been urged to claim bills support vouchers by the end of the month to avoid missing out.

Electricity suppliers, charities and consumer groups are joining forces with a call to arms to make sure households with traditional prepayment meters avoid missing out on £400 worth of help with their bills.

With £130 million of government support left to claim, well recognised names backing the call include Which?, National Energy Action and Fuel Bank Foundation, as the sector comes together in a final push to get remaining households to use their vouchers.

Recent figures show the number of vouchers cashed in has reached an all-time high, with over 83 per cent now used. However, with a month left of the scheme, the Government is renewing its efforts to see as many redeemed as possible.

Awareness campaign

Over the past weeks government adverts have been landing in hundreds of newspapers, bus stops, Post Offices, train station billboards and elsewhere across the country to let those on prepayment meters know how to claim the support.

Prepayment meter users, who are often in low-income households, have so far claimed nearly £650 million under the Government’s Energy Bills Support Scheme. Direct debit customers received the cash automatically over the winter – bringing the total delivered through the scheme to £11.5 billion.

Minister for Energy Consumers and Affordability Amanda Solloway said: “We’ve made huge strides in getting nearly £650 million from our Energy Bills Support Scheme out to prepayment meter customers, often in the homes that need it most.

“We are redoubling our efforts to reach anyone who still hasn’t claimed this help, and it’s fantastic to see so many join our final push to spread the word.”

Ministers are leading a rallying call for customers to head to a Post Office or PayPoint with their Energy Bills Support vouchers and ID before 30 June, so everyone can get the help available.

Need help?

Emily Seymour, Which? Energy Editor, said: “It’s positive that over 80 per cent of Energy Bills Support Scheme vouchers for traditional prepayment meter customers – who are often on lower incomes – have now been redeemed.

“However, there are still lots of households that will be missing out on much-needed financial support. We’d strongly encourage anyone who hasn’t yet redeemed their vouchers to do so before 30 June, so they don’t miss out on extra help unnecessarily.

“It’s also important to remember that any lost, missing or expired vouchers can be reissued, as long as they are redeemed by 30 June 2023. If you are on a traditional prepayment meter and haven’t received your vouchers, are unsure of how to redeem them, or need a voucher to be reissued, you should get in touch with your supplier for more information.”

Don’t miss the deadline

The final push in the Government’s multi-billion-pound intervention comes after news that energy costs will fall by £430 per year on average from July, under the Energy Price Cap – marking a major milestone in the Government’s efforts to halve inflation.

Latest figures, published last month, show that for the sixth month in a row London had the lowest redemption rate, with more than 650,000 vouchers still unused at the end of March. Around 25 per cent of vouchers in Scotland and the South East of England are also yet to be claimed.

Households using prepayment meters who use alternative fuels such as LPG, heating oil or biomass as the main way they heat their homes also have until 30 June to use their vouchers worth up to £200 in energy bills support. Customers will have received these vouchers in the post from their supplier and should contact them if they have any questions.

Low-income families will have more money in their pockets from the end of the month as part of the biggest ever expansion of childcare provision.

The maximum Universal Credit childcare payments will rise almost 50 per cent from June 28, going up to £1,630 a month.

The Government’s plans to increase childcare provision will allow struggling families to access increased support worth a total of £900 million.

The Department for Work and Pensions will raise the amount that parents in Great Britain can claim back monthly for their childcare costs on Universal Credit up to £951 for one child and £1,630 for two or more children.

At the same time, the Government will help eligible parents cover the costs for the first month’s childcare when they enter work or significantly increase their hours, removing one of the most significant barriers to parents working and helping to grow the economy.

Those parents will also receive up to 85 per cent of their childcare costs back before their next month’s bills are due – meaning they should have money to pay one month in advance going forward.

Helping to grow economy

Mel Stride, Secretary of State for Work and Pensions, said: “These changes will help thousands of parents progress their career without compromising the quality of the care that their children receive.

“By helping more parents to re-enter and progress in work, we will be able to cut inactivity and help grow the economy.”

To boost the early years workforce and encourage more people to consider childcare as a valuable and rewarding career, the Department for Education is also launching a consultation in England to remove unnecessary burdens the childcare sector face. This follows extensive engagement with the sector to understand how they can be supported to deploy and train up their staff most effectively.

This is alongside a package of measures to make sure the Government’s historic expansion of free childcare is delivered successfully – with 15 free hours available for working parents of two-year-olds from April 2024, 15 free hours from nine months to the start of school available from September 2024, rising to 30 free hours from September 2025.

From September, the hourly rates paid to providers to deliver free childcare for two-year-olds will increase by 30 per cent from an average rate of £6 to £8. This represents a significant increase in funding for early years.

The Government will also launch a new recruitment campaign early next year to attract and retain talent and consider how to introduce new accelerated apprenticeship and degree apprenticeship routes so everyone from junior staff to senior leaders can easily move into a career in the sector.

£3.5bn package

Minister for Children, Families and Wellbeing Claire Coutinho said: “We are supporting families with the largest ever expansion of free childcare, making sure that places will be available for parents who need them. This will save a working parent using 30 hours a week an average of £6,500.

“We have already announced plans to boost the amount government pays childcare providers, and now we’re knocking down barriers to recruiting and retaining the talented staff that provide such wonderful care for our children.”

This package represents a key pillar of the Government’s drive to reduce economic inactivity. In total, the Government is investing £3.5 billion over five years to boost workforce participation, including helping as many people as possible, such as parents, into work which will in turn grow the economy.

1 June 2023 – Due date for corporation tax due for the year ended 31 August 2022.

19 June 2023 – PAYE and NIC deductions due for month ended 5 June 2023. (If you pay your tax electronically the due date is 22 June 2023).

19 June 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2023.

19 June 2023 – CIS tax deducted for the month ended 5 June 2023 is payable by today.

1 July 2023 – Due date for corporation tax due for the year ended 30 September 2022.

6 July 2023 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2023 – Pay Class 1A NICs (by the 22 July 2023 if paid electronically).

19 July 2023 – PAYE and NIC deductions due for month ended 5 July 2023. (If you pay your tax electronically the due date is 22 July 2023).

19 July 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2023.

19 July 2023 – CIS tax deducted for the month ended 5 July 2023 is payable by today.

The transfer of a business as a going concern (TOGC) rules concern the VAT liability on the sale of a business. Normally the sale of the assets of a VAT registered or VAT registerable business will be subject to VAT at the appropriate rate.

Where the sale of a business includes assets and meets certain conditions the sale will be categorised as a TOGC. A TOGC is defined as 'neither a supply of goods nor a supply of services' and is therefore outside the scope of VAT. Under the TOGC rules no VAT would be chargeable on a qualifying sale.

All the following conditions are necessary for the TOGC rules to apply:

• The assets must be sold as part of a 'business' as a 'going concern'. In essence, the business must be operating as such and not just an 'inert aggregation of assets'.
• The purchaser intends to use the assets to continue the same kind of business as the seller.
• Where the seller is a taxable person, the purchaser must be a taxable person already or become one as the result of the transfer.
• Where only part of a business is sold it must be capable of separate operation.
• There must not be a series of immediately consecutive transfers.
• There are further conditions in relation to transactions involving land.

The TOGC rules can be complex, and both the vendor and purchaser of a business must ensure that the rules are properly followed. The TOGC rules are also mandatory which means that it is imperative to establish from the outset whether a sale is or is not a TOGC. For example, if VAT is charged in error, the buyer has no legal right to recover it from HMRC and would have to seek to recover this 'VAT' from the seller.