ICAEW is warning accountants of the increased risk of IT-related fraud relating to repayment claims as new self assessment tax returns start to be issued, based on the experience of previous years
The institute says that every year around this time it hears reports of a fraud involving repayment claims which are submitted to HMRC online using valid log in details and passwords, requesting payment to a third party bank account.
When the problem first emerged, in 2009, HMRC investigations suggested the main risk involved the stealing of tax agents identity or access details, which were then used to manipulate its systems.
While there is no evidence so far this year of any 2015 tax returns being filed fraudulently, ICAEW is reminding tax agents of the potential pitfalls, and says they should keep close watch on the passwords used to access HMRC systems and ensure they are changed regularly if possible.
The professional bodies and HMRC issued joint guidance in response to the fraudulent activity when it first happened.
CAEW says the information in its document Prevention of IT related tax fraud: Advice for tax agents and advisers, remains valid and is available on the institute’s website.
Details are available here
