Frauds, scams and dodgy advice – The terrifying tales of TikTok tax talks

There is a hidden element to the cost-of-living crisis that places both businesses and individuals at risk.

When times are tough, fear and desperation can sink in, resulting in people becoming too trusting of simple solutions to complex problems.

We know that professional support is the best way to stay on top of your finances and stay compliant.

Social media lets anyone pretend to be an expert, so how can you stay safe when scrolling?

Are social media tax scams more common now?

It is difficult to know whether social media tax scams have increased overall, but engagement with social media certainly has.

The ability for anyone to present themselves as an expert online creates a perilous situation in which scams and lies can be peddled under the guise of respectability.

One such instance occurred recently when two men were arrested after allegedly running a TikTok tax scam, leading HMRC to block £153 million in repayment claims.

This is not an isolated incident and HMRC is warning social media users to become increasingly vigilant of scams.

Yet the overt scams are only a part of the problem.

Misinformation is frequently spread, both by using AI-generated videos of professionals and by users with the charismatic confidence to make it go unquestioned.

The legality of Council Tax was frequently disputed online, so much so that multiple councils have had to issue statements reminding residents that they are under an obligation to pay it.

How can I stay safe on social media?

It might seem unusual for an accountant to be giving a safety talk about social media, but we are best positioned to do this.

In part, this is due to HMRC’s new tax adviser register that will pull in all official sources of tax information by the end of next year.

At that point, it will be much easier to detect falsehoods as only registered tax advisers should be listened to.

It is hoped that the register will be made public for this exact reason, though it is unclear yet whether this will be the case.

It is still worth being vigilant of overt scams as well as the dodgy tips.

Fraudsters may pretend to be from HMRC and claim that you owe tax, adding a threat that court proceedings are imminent should you not hand over money.

They may also offer to reclaim tax repayments on your behalf.

Our expert team are here to help you if you have any questions about tax and finance, including whether a tip or piece of correspondence is legitimate.

As the cost-of-living bites, businesses and individuals alike will be looking for better ways to control their cash and manage tax exposure.

We can help you to budget effectively and stay fully compliant with all of your obligations.

You do not need to turn to TikTok to find out how to make your money work for you.