Be wary of the HMRC audit scam

Scammers are an ever-present threat to businesses, as they attempt to extract hard money from your honest company.

The way in which scammers operate can change regularly, but there are some key warning signs to look out for.

With the HMRC audit scam becoming increasingly common, business owners need to know the warning signs and how to respond safely should they be the target of a scam.

What is the HMRC audit scam?

The HMRC audit scam, which may also be known as the HMRC enquiry scam, is designed to target businesses by emulating genuine correspondence relating to a compliance check.

Many business owners are panicked when they receive this kind of letter from HMRC, even if they are confident that nothing has gone wrong with their business’s finances.

The fear attached to this is the reason why it is a popular avenue for scammers.

Scammers operate under the hope that you will respond to illegitimate correspondence without giving it much thought in a desperate attempt to pacify a seemingly irate HMRC.

While most scams take the form of a letter, there are reports of texts, emails, phone calls and even social media messages that claim to be from HMRC and place a suspicious request with a business owner.

What can be done to protect my business from the HMRC audit scam?

Staying calm and taking the time to think through any situation before responding is usually the best course of action in the face of a scam attempt.

The emotion that you feel when receiving the scam communication is engineered to make you act impulsively, with the goal being that you will disclose vital information or transfer funds before a moment of clarity sets in.

Giving a scammer information might mean they are able to gain access to sensitive accounts connected to your business, including your Companies House account, or they may sell the information to other criminals.

Transferring money can weaken your business’s budget and might leave your finances accessible to the scammers, as they could continue to take more money from you.

Before taking any action with a compliance letter, it is also best to determine whether it is genuine.

HMRC do not demand immediate action and will happily clarify the authenticity of any communication that claims to be from it.

Having support from an expert accountant can also help you to stay aware of the likely requests that HMRC may make of you and gain greater financial literacy.

Our team work to make sure that business owners have control over their finances and stay fully compliant with HMRC guidance and regulations.

This means that enquiry letters should not be met with dread when they land on your doorstep, as they are likely part of a routine compliance check.

With this confidence and our supportive team on hand when you need it, you should be confident enough in your finances that you are able to respond to scam attempts with the calmness that will keep your business safe.

For expert financial support that empowers your business to stay confidently compliant, get in touch with our team today.