In this week’s Enews, we look at HMRC’s scam warning as the self assessment deadline draws closer. There is also news on the UK’s Industrial Strategy and HMRC’s cut to rates for late payments and repayments to update you on.

• Scams warning as self assessment deadline looms
• Industrial Strategy must benefit all parts of the UK
• HMRC late payment interest cut by 0.25%

HMRC is warning of scam attempts targeting self assessment taxpayers in the run up to the 31 January deadline.

Last year, concerned taxpayers reported nearly 150,000 scam referrals to HMRC.

Around half of all scam reports in the last year were fake tax rebate claims, says the tax authority.

There has been a 16.7% increase in all scam referrals to HMRC – 144,298 were received between November 2023 and October 2024, up from 123,596 in the previous 12-month period, it added.

If communication claiming to be from HMRC asks for personal information or offers a tax rebate, check the advice on GOV.UK to help identify if it is scam activity.

HMRC says it will never leave voicemails threatening legal action or arrest or ask for personal or financial information over text message – only fraudsters and criminals will do that.

Kelly Paterson, Chief Security Officer at HMRC, said:

‘With millions of people filing their self assessment return before January’s deadline, we’re warning everyone to be wary of emails promising tax refunds.

‘Being vigilant helps you spot potential scams. And reporting anything suspicious helps us stop criminal activity and to protect you and others who could have received similar bogus communication.

‘Our advice remains unchanged. Don’t rush into anything, take your time and check ‘HMRC scams advice’ on GOV.UK.’

Internet link: GOV.UK | HMRC press release

The UK’s Industrial Strategy must benefit all parts of the country, according to the British Chambers of Commerce (BCC).

The government says the Industrial Strategy will be published in Spring 2025, alongside the multi-year Spending Review.

The BCC is urging ministers to integrate each nation and region’s strengths into the plan, alongside a focus on sectors.

In a written submission, the business group says that for the strategy to succeed, foundation issues such as a competitive tax environment, skilled workforce and an enabling regulatory environment must be in place. It points out that achieving this will require collaboration across government departments and involvement from both the public and private sectors.

Jonny Haseldine, Policy Manager at the BCC, said:

‘The Industrial Strategy is a much-needed opportunity to boost economic growth and investment.

‘With millions of businesses now facing increased costs following last month’s Budget – even more is now riding on the government’s strategy. Firms in every corner of the UK need this plan to deliver at pace for their needs and their communities.

‘The strategy needs to identify priority sectors which will drive growth – building on the past but crucially looking forward.

‘But the industrial strategy will struggle unless other key obstacles to business investment are tackled. It must not be designed and implemented in isolation from other policy measures and strategies.’

Internet link: BCC website

HMRC has reduced late payment and repayment interest rates following the cut to the base rate.

The Bank of England cut the base rate to 4.75% on 7 November, the second reduction this year.

This has triggered a cut in HMRC interest rates which are pegged to the base rate.

From 26 November, the late payment interest rate was cut to 7.25% from 7.5%. The repayment interest rate was also reduced to 3.75% from 4.0% from 26 November.

HMRC late payment interest is set at base rate plus 2.5%. Repayment interest is set at base rate minus 1%, with a lower limit - or 'minimum floor' - of 0.5%.

Corporation tax self assessment interest rates relating to interest charged on underpaid quarterly instalment payments dropped to 5.75% from 6.0% from 18 November.

The interest paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments is down by 0.25% to 4.5% from 5% from 18 November.

Internet link: GOV.UK