Tax Demands not the only Financial Problem

19 May 2012

As 5.7 million people are told they've paid the wrong amount of tax since 2008, fraudsters are already stepping in to capitalise on the taxman's blunder.

From now until Christmas people from across the country will be told whether they are owed or owe money to HM Revenue & Customs (HMRC) following a two-year error which has seen £2billion worth of inaccuracy in Treasury funds.

Scammers will always jump on the latest piece of news to make money quickly and this case is no exception - most people can spot email spam a mile away, which is why the con-artists use news stories like this to add a sheen of realism to their requests.

Within days of the announcement being made people were already beginning to receive fake emails and telephone calls requesting bank details or payment.

While official correspondence from HMRC will not ask for bank details and people won't be contacted via telephone or email, fraudsters will. Anyone who receives any form of communication which they suspect to be fraudulent should not respond and should contact HRMC and the Police immediately.

The news of this tax error comes as many Morpeth and Ashington residents are already concerned around job security and how they'll cope should the worst happen - this is just another worry for them to have to deal with should they receive a letter.

The average figure owed by individuals is £1,428, which could see those affected over £100 worse off every month. This represents a substantial proportion of many people's monthly income, comfortably a week's food shopping allowance for a family of four, so we aren't talking just a few pounds here and there.

This blunder comes at a time when energy prices are rising and welfare benefits may be frozen as the country tries to recover from the recession and people across our county are already having to significantly cut their household expenses.

We are now expecting to see a dramatic rise in the number of calls we receive on financial worries as more letters from HRMC arrive. Concerns around money not only hits people's wallets and spending habits but their general well-being can be greatly affected as increased stress levels take their toll. The health of low-income families and elderly people may be worse affected as they can be left thinking they have no other option but it turn the heating down, even in the coldest months, and may not have sufficient funds to cover food bills.

People worried about how their finances may be affected by this should access advice immediately to ensure matters do not become worse. Seeking expert support can help people realise they are not alone in this situation and can learn how to prioritise their bills, while some families, depending on their circumstances, might be entitled to extra benefits to help meet rising living costs.

Morpeth and Ashington residents concerned about financial issues can contact the DAWN Advice Team for free and independent advice on 01670 785 500.