How to recognise tax scam phone calls, emails and text messages
HM Revenue and Customs (HMRC) have recently published updated their guidance on how to identify tax scams made by phone, email, or text
HMRC advise that if you receive a phone call, email, or text message that purports to be from them, it is likely to be fake if it:
- rushes you;
- is threatening;
- is unexpected;
- asks for personal information, such as bank details;
- tells you to transfer money; or
- offers a refund, tax rebate or grant.
HMRC also confirm what they will and won’t do if they contact you.
By phone:
HMRC will never threaten arrest or leave a voicemail threatening legal action.
By text:
HMRC do send text messages that may include a link to GOV.UK information or HMRC webchat. They will never ask for personal or financial information. So, a text message that offers a tax refund in exchange for personal or financial details cannot be from them.
By WhatsApp:
If you have subscribed to the UK Government Channel, you may receive occasional tax-related reminders, but you will not be able to reply. HMRC don’t otherwise use WhatsApp to communicate with taxpayers.
HMRC does use QR codes in its letters to take you to guidance on GOV.UK, but they confirm that you would never be taken to a page that requires you to provide personal information. QR codes might also be used after you have already logged in to redirect you to, say, your bank login page.
Guidance for small businesses using online services
The National Cyber Security Centre have issued some new guidance on “Using online services safely.”
To avoid having to set up and manage their own IT infrastructure, many small businesses use online or cloud services. For instance, these might include email, online storage, online accounting and managing of invoicing, website hosting, and social media.
The guidance is designed to help small businesses reduce the likelihood of cyber attacks when using these services.
The guidance provides help on:
- Choosing a good service,
- Backing up critical data,
- Protecting the domain name you use for your website and email addresses,
- Creating separate user accounts and securing them,
- Protecting your admin accounts,
- Defending against malware,
- Using the security features that are built into the service, and
- Recovering a hacked account or service.
If you are a small business without the resources to employ a dedicated IT specialist, this advice can help you to consider and cover off the risks you face when using online services.
Bounce Back Loan fraudster sentenced
Salih Ozhot from North London has been given a suspended prison sentence of 2 years for applying for a Bounce Back loan in 2020 for his business but then using the funds personally. He is also required to repay the £50,000 he borrowed in full at the rate of £500 per month.
Insolvency Service Investigators found that Mr Ozhot had withdrawn £19,000 within one week of receiving the loan. Their analysis of subsequent transactions showed that he used the money for personal rather than business reasons. Mr Ozhot was declared bankrupt in October 2021.
The Insolvency Service described Mr Ozhot’s actions as “cynical,” “sophisticated,” and “pre-planned.” He is now barred from acting as a company director without permission from a court.
Bounce Back Loans were government guaranteed loans made available to support businesses during COVID-19. However, the Department for Business has come under criticism for being too lax with the application process and HMRC has estimated that the total amount of error and fraud across all COVID-19 support schemes could be as much as £5bn. The government has subsequently launched pilot programs to try and detect potential fraud.
Unlocking efficiency and growth: The benefits of cloud accounting
In business, staying ahead of, or at least up with, the curve is crucial for success. Over recent years, one of the revolutionary tools that has transformed the way businesses manage their finances is cloud accounting. Cloud accounting offers many benefits over traditional, on-premise accounting systems. Let’s discuss some of them.
Accessibility
Traditional accounting systems often tie businesses to a specific location, requiring users to be physically present in the office to be able to access financial data. Cloud accounting frees a business from this constraint. It gives users access to real-time financial information anytime, anywhere. This kind of flexibility and access can be very valuable, allowing teams to collaborate and decisions to be made regardless of location.
Cost efficiency
Cloud accounting operates on a subscription-based model, avoiding the up-front software licence costs usually involved in traditional accounting systems. Cloud accounting systems also typically receive automatic updates and maintenance, which can reduce the demand for IT support.
Security
The security of financial information is naturally a top concern for a business. Cloud accounting providers use advanced encryption measures to ensure that sensitive information is kept safe. These providers usually have dedicated teams focused on monitoring and addressing security threats too. This provides a level of protection that may be difficult to replicate on your own premises. Cloud accounting systems also include robust backup processes, which reduce the risk of losing data because of hardware failing.
Automation
With many cloud accounting systems - or by means of subscribing to linked automated data entry software – data entry can be automated. By uploading a copy of the invoice or receipt the software can ‘read’ the data and create the entry needed by the accounts system. While such systems rarely achieve 100% accuracy, the time-savings can be considerable and allow those dealing with finance to concentrate on more strategic work.
The benefits of cloud accounting can be transformative to a business and give you a competitive edge in today’s dynamic market. Embracing this technology is not just a trend but can be considered a strategic move towards a more agile, responsive and prosperous business.
New digital labelling legislation cuts red tape
UK businesses are welcoming new legislation that introduces digital import labels. The legislation aims to reduce red tape and cut millions in unnecessary regulation costs.
The move towards digital labelling allows businesses to upload regulatory and manufacturing information online rather than physically printing it on products. This should save both time and money that can be better invested in other business areas.
The new legislation includes continuing to recognise CE marking for products like toys and machinery.
Next generation broadband coming to a location near you?
The UK government has announced the signing of six new contracts that will allow suppliers to connect businesses and homes in hard-to-reach areas to lightning-fast full fibre internet.
Rural communities in Buckinghamshire, Hertfordshire, Berkshire, Leicestershire, Warwickshire, Sussex, Kent, Bedfordshire, Northamptonshire, Milton Keynes, Nottinghamshire, and West Lincolnshire are the subject of these contracts. It is expected that some 236,000 premises will benefit from the uprated connections with the first being connected in early 2025.
For any business using the internet, speed and reliability make a big difference to productivity. Full fibre can deliver internet speeds of up to 1,000 megabits (or one gigabit) per second. This is up to 30 times faster than connections that rely on traditional copper cables.
