Spotting bad tax advice online
More people are turning to social media, online videos and AI tools for money and tax tips.
While many responsible content creators help make tax easier to understand, not all advice online is correct.
Some of it may be misleading, overly simplified, or not right for your circumstances – this includes answers you get from AI chats.
Even if advice seems OK at first glance, it might not be quite right. So look twice before following it.
Always check GOV.UK for guidance you can trust
Don’t follow any advice you’ve seen online without double-checking the guidance.
This will help you avoid mistakes, unexpected tax bills and penalties.
Having lots of followers doesn’t make someone an expert
Even if a post or video has thousands of views, likes or shares, that doesn’t mean it’s reliable information.
Financial influencers may mislead you
Some finfluencers (financial influencers) present tax advice as quick wins.
Unlike responsible content creators, these individuals may not explain the rules, risks or whether the advice applies to your circumstances.
They may also put likes, views or paid promotions above giving you correct information. This can include posting exaggerated or false claims.
Keep in mind that people sometimes share content they genuinely intend to be helpful, but may have misunderstood the tax rules.
Bad tax advice online could be a sign of fraud
More seriously, fraudsters may try to catch you out by posting money and tax advice that’s a scam.
Think you’ve spotted content that could be a scam? Report it on GOV.UK to help protect against fraud.
Some posts suggest ideas that break the tax rules
This includes things like claiming personal holiday expenses as business costs, which are not eligible.
Other posts encourage you to misrepresent money you make from property or other income to reduce your tax bill – again, this is not allowed under the tax rules.
Following bad tax advice has serious consequences
Following this kind of advice could mean you pay the wrong amount of tax.
If you do, you may have to pay HMRC the extra tax you owe, along with any interest and penalties.
Your tax is your responsibility
If you send HMRC incorrect or false information, such as in a tax return, you are responsible for it – even if you got the idea from someone you trusted.
That’s why it’s important to check GOV.UK guidance before following tax advice online.
What to look out for
Be careful if you come across tax advice online that:
- sounds too good to be true, without explaining any risks
- promises easy ways to reduce your tax without a clear explanation
- describes a way to pay less tax as “HMRC approved”
- encourages you to claim expenses or tax reliefs you don’t understand or have never heard of
- suggests “everyone does this” or pressures you to act quickly
- calls tax “unlawful”
- does not encourage you to check GOV.UK guidance
Those are all common warning signs of bad advice. If you follow it, you could end up owing more tax than expected.
AI tools and tax advice
Artificial intelligence (AI) tools are a popular way to get answers to tax questions. But AI can give you incomplete, out of date or wrong information – even when it sounds confident.
For example, AI chats have wrongly suggested that VAT deadlines move if they fall on a weekend or bank holiday, when deadlines are fixed in law and do not change.
So don’t rely on AI without checking GOV.UK guidance.
Get trusted information from HMRC
Don’t get caught out by bad tax advice online. For up-to-date guidance you can trust, check GOV.UK before following any advice. This will help you to get your tax right.
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