Agents are being warned to ensure their computer security is up to date to protect them against a new VAT scam using sophisticated email phishing targeted at tax advisers.HMRC is working with CIOT to publicise details of the scam, which involves sophisticated malicious software designed to extract the secure login details of taxpayer accounts, enabling fraudsters to submit bogus VAT repayment claims.

HMRC has identified the affected accounts that were changed by the fraudulent attack and have written to each affected taxpayer and their relevant agent. The letters were sent out from mid-December onwards. The affected accounts have been cleaned by the tax authorities and returned to 'pre-attack' status.

HMRC has confirmed that there will be no financial loss to the affected taxpayers and has introduced additional measures to guard against similar repeat attacks.

Agents are advised to carry out full security scans to clear their computers of viruses and to keep anti-virus, anti-spyware and firewall software up to date. It is also important to control who accesses HMRC's systems within firms, and to ensure that confidential data, like passwords, are kept secure.

The CIOT briefing is available here