With the Self-Assessment deadline now behind us, contractors should remain extra vigilant against phishing scams and fines.

HM Revenue & Customs (HMRC) has reported a record-breaking number of Self-Assessment tax returns submitted before the 31 January deadline, with over 11.5 million taxpayers managing to file on time.

However, for many, this came as a last-minute scramble, with nearly 780,000 submissions made on deadline day alone.

Some 33,000 taxpayers left it until the final frantic hour between 11 pm and midnight, while the busiest period was between 4 pm and 5 pm, when 61,549 returns were submitted just before the end of the working day.

The cost of missing the deadline

Despite the high number of timely submissions, 1.1 million taxpayers missed the cut-off, immediately incurring a £100 fine.

However, this is just the beginning of the penalties for late filers:

• £10 per day after three months, up to a maximum of £900
• A further 5 per cent of the tax due or £300 after six months, whichever is greater
• An additional 5 per cent of the tax due or £300 after 12 months

Separate late payment penalties and interest charges will also apply for unpaid tax bills. With HMRC expected to collect at least £110 million in fines, the cost of missing the deadline can quickly escalate.

The rise of phishing scams

Every year, HMRC sees a spike in fraudulent activity following the 31 January deadline as scammers attempt to exploit taxpayers who are expecting tax refunds or fear penalties for late filing.

Fraudsters are becoming increasingly sophisticated, making it crucial to recognise the warning signs and protect yourself from potential financial loss.

How do phishing scams work?

Phishing scams typically involve emails, text messages, or phone calls that claim to be from HMRC.

They often:

• Promise a tax refund and request personal or bank details.
• Demand immediate payment for an “unpaid tax bill” to avoid legal action.
• Ask for HMRC login credentials under the pretence of verifying information.
• Contain links to fake HMRC websites that look legitimate but are designed to steal your information.

HMRC has confirmed that it will never ask for payment details or personal information via email or text.

If you receive a message that seems suspicious, do not respond, click any links, or provide any details.

Stay secure and stay informed

Fraudsters are becoming increasingly sophisticated, but by staying alert and following best practices, you can protect yourself from phishing scams. If you’re ever unsure about a tax-related message, consult us before taking any action.