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Updated on 17 December 2025

Understanding tax-related economic abuse – and where to find help

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Economic abuse can be facilitated through the tax system in ways that may not be immediately obvious. You may not initially recognise these behaviours as abuse — but they can have serious consequences for your financial stability. This article explains what tax-related economic abuse can look like, how it can impact your financial situation, and where to get confidential support and advice.

woman holds a document looking distressed
shutterstock/fizkes

Economic abuse is a form of domestic abuse and in many cases, can be part of a wider pattern of controlling or harmful behaviour. People may think of economic abuse as relating to controlling income or spending, restricting access to bank accounts or assets, or coercing someone into taking on bills and borrowing. But it can also be tax-related and intersect with debt, benefits and business structures.

According to research published in November 2024 by the charity Surviving Economic Abuse, one in seven (15%) UK women had experienced economic abuse from a current or former partner within the last 12 months, equivalent to 4.1 million women aged 18 years and over. However economic abuse can affect both men and women. We understand from evidence provided to Parliament, that the pandemic and the cost-of-living crisis have increased its prevalence.

What is tax-related economic abuse?

In the UK, we have an independent system of taxation, meaning individuals are – for the most part - assessed and taxed separately on their own income and gains and are responsible for reporting/paying any taxes to HMRC themselves.

However, tax-related economic abuse involves someone using tax to control, manipulate, or financially exploit you. It can happen in many ways, including when someone:

  • coerces you into tax debt
  • handles your tax affairs without your informed consent
  • files a tax return for you without your knowledge or makes decisions in your name
  • misrepresents your income or circumstances to HMRC
  • uses seemingly ordinary tax arrangements in ways that are detrimental to you
  • withholds information you need to understand your tax position or correctly deal with your tax affairs

Tax-related economic abuse can happen slowly and subtly – in fact it may even be presented as ‘help’. The effects of the abuse might only become visible after a relationship ends. It can also create a range of practical issues.

Below, we have set out an example involving a husband and wife and limited company arrangement to help illustrate some of the issues, although it is important to understand economic abuse is not always limited to these kinds of arrangements or relationships.

How can this kind of abuse affect your tax – an example

Pete is in the process of setting up a limited company. Pete is married to Zita who is a stay at home mum and has no income.

Following a meeting with an accountant, Pete decides to make Zita a shareholder of his company, so that dividends can be paid in her name and are therefore taxed on her, making use of her personal allowance and lower tax bands. He does this without explaining anything to Zita or giving her the chance to seek independent advice.

Dividends are recorded in the company accounts as being paid to her, but the money goes into a bank account that she does not have access to.

Following the end of each tax year the accountant prepares tax returns for both of them, including the dividends paid in Zita’s name. He sends these to Pete for approval, asking that Pete seeks Zita’s authorisation in respect of her own tax return. Pete approves both tax returns without involving Zita and these are filed by the accountant online using his own software. Pete pays Zita’s tax liability, but she doesn’t know about any of it.

What happens when the relationship breaks down?

Zita moves out. It is some time before she provides HMRC with an up to date address, but once she does, some issues start to surface from the HMRC letters she receives. As reported on her 22/23 tax return, Zita has received a large amount of taxable dividend income which generated a tax liability, but because of the relationship breakdown, this has not been paid by Pete. So Zita is suddenly left with a large liability to HMRC for money she never personally received. HMRC also issued a tax return for the 23/24 tax year which is now late and is accruing late filing penalties. Zita does not know how to complete this.

Zita finally works out what has happened. She checks on Companies House website and can see in the documents that she is listed as a shareholder. In addition to the tax issues, she is worried about what this means and what this might have exposed her to.

Meanwhile, she is caring for the children alone, has limited access to funds or professional assistance, and is unsure how to engage with HMRC or the benefits system. She is unsure if she is able to claim universal credit because her ‘financial history’ shows higher income than she ever actually had and she remains listed as a shareholder. 

This is an incredibly stressful situation for Zita.

How to recognise if this is happening to you

Tax planning within marriages and civil partnerships is very common and usually not a cause for concern; and of course, it is quite natural that in any type of relationship or family dynamic one individual might take the lead on finances in a responsible way.

However, if any of the following are present, you may be experiencing tax-related economic abuse (please note this is not a complete list):

  • You are told you are not allowed to contact HMRC yourself.
  • You are pressured to register for something, e.g. a company director without understanding why and what this might entail.
  • You are not allowed to open tax-related post, or letters addressed to you are concealed.
  • The controlling party insists on dealing with tax or HMRC matters for you but you haven’t asked them to.
  • If you are preparing a tax return yourself, you are given numbers to put into it without clear explanation.
  • You are discouraged from asking questions about your taxes.
  • There is an accountant helping with the family finances but you do not feel able to contact them yourself.
  • Someone is filing online tax returns for you, but they are not shared with you for approval prior to submission (online tax returns can be filed without an actual signature being given but they should have been approved by the taxpayer!)
  • You do not have access to or visibility over bank accounts that are in your name.
  • You are asked to sign documents you don’t fully understand and/or don’t feel comfortable with.
  • You discover tax-related accounts or registrations in your name but not created by you.
  • You have been told you owe tax money without clear explanation and don’t think you have done anything to cause this.

Trust your instincts — if something doesn’t feel right, it is worth seeking some independent help and support.

What can you do if you think you’re affected?

If you have unexpected tax issues or tax liabilities have been built up in your name and you suspect you might be a victim of economic abuse, there are steps you can take to challenge decisions, and advisers/organisations that can help you to find solutions and a pathway forward.

Organisations with experience supporting victims of economic abuse might be able to help you understand your options, plan your future, and provide support.

We link to some of the organisations that can provide such support at the end of this article. If you decide to contact an organisation, it’s important to put your safety first. Consider if the other person might have access to your email, phone, online accounts or post.

If the relationship has now ended and you are in the process of separation or divorce, you might have a lawyer working for you. They might also be able to help or at least signpost you to support services.

Tax and benefits systems often rely on evidence. If it is safe to do so, start gathering any information or paperwork you can find related to:

  • income records
  • tax returns or other tax information – HMRC will be able to give you an overview of your own record – more on contacting them below.
  • tax advisers
  • business or company records for example from Companies House
  • bank statements

Even small pieces of information can help to put things right and regain control over your situation.

If tax returns have been filed in your name, HMRC will normally assume the information was provided with your knowledge and approval unless the situation is explained. This is why it’s important to let HMRC know about your circumstances as soon as you feel able to.

You may feel anxious about making contact, but government organisations have made significant progress in recognising and responding to economic abuse. For example, frontline advisers across different departments, including HMRC, now use an economic abuse toolkit/some interactive guidance to help them identify and support victims.

In line with their published principles, HMRC aims to treat victims sensitively and fairly. They already have experience of dealing with economic abuse in various settings — including the old tax credits system— and offer a dedicated extra support team (EST) service for people who need additional help. Victims of economic abuse can be referred to this service.

Although situations involving economic abuse can be complex, and the extra support team cannot automatically remove tax liabilities, we understand that they can assemble a case management team to help navigate all the issues. For example, they may look at who actually benefited from any income, amend incorrect or incomplete returns filed without your knowledge, cancel outstanding returns or penalties where appropriate, help you regain access to your Personal Tax Account, or — where information has been withheld from you — share the data they hold in their own systems. If the controlling partner has claimed child benefit and you now want to claim it instead, HMRC can potentially help you through this process.

Importantly, HMRC can place a note on your record explaining that you are dealing with an abusive situation. This means you should not have to repeatedly disclose sensitive details. They can also take steps to communicate with you safely — for example by using alternative addresses or online messages — to reduce any risk of confrontation with the other party.

If you need more help with your tax position, you can contact the charity TaxAid – more information below.

In some cases, accountants or tax agents may have unknowingly facilitated economic abuse, for example by relying on information provided solely by the controlling partner or by filing returns without you being given a genuine opportunity to review, understand or approve them (as was the case in for Zita in the example above). In much rarer situations, concerns may arise that an adviser deliberately ignored signs that should have prompted further clarification.

If you have worries about how a professional handled your affairs, you can check whether they are accredited (for example by ICAEW, ACCA, CIOT, ATT or ICAS) and consider raising a concern with their professional body. These organisations set ethical standards requiring advisers to act independently, confidentially, and manage conflicts of interest. Advisers should ensure clients understand the filings made in their name, and—consistent with conduct guidance— obtain evidence of approval. While this specific guidance is not mandatory, members may still be asked to explain why it was not followed. 

If they are not accredited, they must still meet HMRC’s standards for agents.

Benefits can be a lifeline when you are rebuilding your situation and finances. However you may worry that tax issues created by the controlling party will affect your future entitlement — this should not be the case, although you may need to contact someone such as a domestic abuse charity, your employer or trade union rep, a social worker, police officer or health professional if you are asked to provide evidence about your situation.

The main means tested benefit you may be able to claim is universal credit (UC). For most people who have reached their state pension qualifying age, it is pension credit. The Department for Work and Pensions (DWP) pay UC, and your claim should be based on the facts of the matter and on what support you need now, rather than any financial records another party may have influenced in the past. Currently, there is no automatic read across of information between HMRC and DWP in situation like this, so you might need to explain what has been happening with your finances, to the extent it is relevant. Note that there are proposals for wider use of third party data in the pipeline, including from banks, but for now DWP relies on self-reporting.

  DWP has a range of measures within the social security system designed to provide support for customers experiencing domestic abuse, including economic abuse. They have produced a helpful guide about the support that you can get. If you need further help to understand what you might be entitled to and help you make any claims, you should seek specialist welfare rights advice. 

Further information and resources

MoneyHelper website provides guidance on understanding financial abuse, including spotting the signs and leaving safely and taking back control after financial abuse.

The Financial Support Line (run by Money Advice Plus) offer specialist support for people experiencing domestic abuse and financial difficulty 0808 196 8845.

Surviving Economic Abuse (SEA) website has information, guidance and a range of practical tools for anyone experiencing economic abuse.

Topics covered include: 
- survivors’ forum 
- banking support directory detailing the help major UK banks can provide 
- de-linking your finances from an abuser 
- housing & property, debt, banking and legal advice  
- information on economic abuse in other languages

My Money, My Life - A financial guide by the charity Refuge, for survivors of domestic abuse.

Women’s Aid – Survivor’s Handbook - includes advice on creating a safe financial future.

In some situations, economic abuse may amount to a criminal offence under the Domestic Abuse Act 2021. If you feel able, you can speak to a domestic abuse specialist or solicitor about legal options.

Citizens Advice - Free, confidential advice on benefits, debt and money.

TaxAid – Their helpline provides free, expert support for people who can’t access professional tax advice – whether that’s due to cost, health issues, or personal challenges that make finding the right help difficult. Their expert advisers are experienced in sorting out tax issues for people who are struggling with tax, from problems with Self Assessment to unexpected tax bills. They’ll help you solve your problem on the call or refer you to one of their case workers if your issue needs a bit more work. TaxAid can also help you access the extra support team if you are struggling to contact them through the normal HMRC channels.

We would love to hear what you think about this subject – you can share your comments below.

Please note all comments are moderated in line with our comment guidelines, so there might be a short delay before your comment is published if it meets the guidelines.

Meredith McCammond

Technical officer 

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