HMRC has sent out a caution to home workers, warning them of online fraudsters claiming they can secure a tax refund on their behalf. These misleading adverts often promise quick rebates for those who work remotely.

Writing on X, formerly Twitter, the tax collection organisation said: “Don’t get caught out by ads promising quick tax refunds for working from home. Always check if you’re eligible before making a claim.

“Avoid agent fees by claiming directly with HMRC.”

Such unscrupulous agents may promise to handle claims for work-related expenses on a commission basis. Yet, even if you’re not entitled, you would still be responsible for any incorrect claims made in your name.

If you are actually eligible for expense claims, you have the option to file them personally at no extra charge as HMRC provides a checker tool to see if you qualify and for which specific expenses. A common pitfall leading to disallowed expense claims is when people claim home-working allowances when they opt to work from home – but are not obligated to do so.

Essentially, if your job provides an office but your contract allows you to work from home instead, then you won’t qualify for this particular tax relief. Should you consider hiring a tax firm or agent, HMRC stresses the importance of recognising signs of dubious tax advice. They highlighted: “If someone promises easy money and it sounds too good to be true, it probably is.

“Handing over your personal information could mean you end up having to pay back the full amount of any invalid claim made on your behalf, including any commission an agent has already taken. Before using a tax refund company or tax agent for rebates, take your time and do some research.”

When selecting a tax agent, HMRC suggests verifying their legitimacy by checking customer reviews and professional accreditations from bodies like the Institute of Chartered Accountants in England and Wales or Chartered Institute of Taxation. Always read the fine print on disclaimers and contracts before signing, and never sign a blank tax return.

HMRC also emphasised: “An agent should always ask for receipts and should never ask you to share your Government Gateway ID. HMRC will never endorse an agent.”