Fraudsters often try to take advantage of the 31 July deadline for submitting tax credits renewal information.

The fraudulent emails, texts or calls claim to be from HMRC and often promise money back in the form of a tax rebate together with a click-through link to a replica of the HMRC website. The fraudsters then try and steal personal details such as bank or credit card details of unwitting recipients who in some cases even transfer money for a bogus overpayment.

As the deadline approaches, HMRC is warning around 1.5 million tax credits customers to be alerted to scams that mimic government communications to make them appear genuine. In the 12 months to 30 April 2023, HMRC responded to more than 170,234 referrals of suspicious contact from the public. More than 68,437 of these offered bogus tax rebates.

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; and
• emails or texts offering spurious tax rebates or bogus grants or support.

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.’

Universal Credit is expected to fully replace tax credits, and other legacy benefits (including Income-Related Employment and Support Allowance, Income-Based Jobseeker’s Allowance) by the end of 2024.

HMRC has confirmed that plans to extend the Help to Save scheme by 18 months, until April 2025 have been confirmed.

The Help to Save scheme is intended to help those on low incomes to boost their savings. Eligible users of the scheme can save between £1 and £50 every calendar month and receive a 50% government bonus. The 50% bonus is payable at the end of the second and fourth years and is based on how much account holders have saved. The bonus is paid directly into the account holder’s chosen bank account.

This means that account holders on low incomes can receive a maximum bonus of up to £1,200 on savings of £2,400 for 4 years from the date the account is opened. The scheme is open to most working people who receive Working Tax Credits or Universal Credit.

Almost 360,000 people have opened Help to Save accounts since the scheme was launched in September 2018 and an additional 3 million individuals could still benefit from the savings scheme as a result of the extension.

The government also published a consultation on the scheme that is looking at how the scheme can be reformed and simplified.

Support measures have been agreed for those struggling with, or anxious about, their mortgage repayments.

A new mortgage charter was approved following a meeting of the Chancellor of the Exchequer, the UK’s principal mortgage lenders and the Financial Conduct Authority.

Three of the key measures

• Anyone concerned can talk to their bank or their mortgage lender and it will have no impact on their credit score.
• If you change your mortgage to interest only or you extend the term of your mortgage and you want to go back to your original mortgage deal, within six months you can do so, with no questions asked and no impact on your credit score. This will take effect within the next two weeks.
• There will be a minimum 12-month period before there’s a repossession without consent.

Chancellor Jeremy Hunt said: “These measures should offer comfort to those who are anxious about high interest rates and support for those who do get into difficulty.

“Tackling high inflation is the Prime Minister and my number one priority.

“We are absolutely committed to supporting the Bank of England to do what it takes. We know the pressure that families are feeling. That’s why we’ve introduced big support packages around £3,000 for the average household this year and last.

“But we will do what it takes, and we won’t flinch in our resolve because we know that getting rid of high inflation from our economy is the only way that we can ultimately relieve pressure on family finances and on businesses.”

Some promising figures

The latest market indicators (FCA; UK Finance) show that mortgage arrears and defaults remain below pre-pandemic levels, which were themselves extremely low.

The FCA reported 0.86 per cent of total residential mortgage balances in arrears in the first quarter of 2023 which is significantly lower than the 3.32 per cent rate in 2009.

The proportion of disposable income spent on mortgage payments is currently at 5.4 per cent, compared to around 10 per cent in the 1990s and prior to the financial crisis.

Do you need advice around mortgage payments? We can help.