VAT: Fraud
The question
To ask the Chancellor of the Exchequer, how many UK businesses at the most recent date for which information is available have had their Government Gateway access restricted on the grounds that their accounts may have been compromised by fraudulent attempts to reclaim VAT.
Answered by Dan Tomlinson
The security of HMRC’s online services is a top priority. We are aware of attempts by organised criminals to access VAT accounts using genuine customers’ registration details, and our immediate focus is to protect customer data and correct any affected tax or payment records. Customer accounts may be restricted, i.e. suspended or deleted, for a range of reasons, including proactive fraud monitoring, reports of suspicious activity, and the closure of inactive accounts. Specialist security and VAT teams are actively investigating and delivering improvements to strengthen VAT account security, which could include restricting accounts where fraudulent activity has not been identified.
When and if fraudulent activity has occurred, HMRC contacts affected customers to explain the remedial actions taken and outline any steps they need to take.
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