Be cautious of fraud when reclaiming s455 tax online

Posted on 28th November 2024 by Streets - Article

By Jennie Brown, Tax Partner

With the ability to reclaim s455 tax online, businesses now enjoy a faster and more efficient process. However, this convenience comes with an increased risk of fraud, as scammers may target this new system.

What is s455 Tax?
Section 455 tax applies to certain loans made by close companies to their shareholders or directors. When the loan is repaid, the tax can be reclaimed.

How to Claim s455 tax online
To claim s455 tax, you'll need to:

Log into your HMRC online account.
Navigate to the section for close company loans.
Submit the claim, ensuring all supporting documentation is accurate and complete.

You can find detailed guidance on how to make your claim on the official HMRC page Reclaim tax paid by close companies on loans to participators (L2P) - GOV.UK

Stay vigilant against fraud
Scammers may impersonate HMRC or claim to offer assistance with reclaiming s455 tax. To protect yourself.

Always verify communications claiming to be from HMRC
Avoid clicking on links in unsolicited emails or texts
Use only HMRC’s official website to submit claims
Be cautious of anyone requesting sensitive information like login details or payment information

If you suspect fraudulent activity, report it immediately to HMRC via their Report tax fraud or avoidance to HMRC - GOV.UK

For help with reclaiming s455 tax or any related queries, feel free to get in touch with your Streets contact. We are happy to help.

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