How To Claim Compensation For A Tax Information Data Breach

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How To Claim Compensation For A Tax Information Data Breach

If you want to find out how to claim compensation following a tax information data breach, our guide could help. We understand that beginning the legal process may seem daunting, which is why we’ve curated this guide to help you.

A guide to claiming after a tax information data breach

You might have questions, such as:

What is the penalty for data breaches?
Is a data breach a crime?
Who are data breaches reported to?

We’ll answer all of these questions and let you know how a No Win No Fee data breach claim might benefit you. However, before we begin, you should be aware of key legislation in place that makes it possible for you to claim following a data breach of tax information.

The UK General Data Protection Regulation (UK GDPR) sets out how personal data is processed. It is supplemented by the Data Protection Act 2018, another data protection law.

When an organisation breaches the UK GDPR, you might be able to claim data breach compensation. However, you must have suffered psychological harm or financial loss as a result of the data breach. The organisation would also need to have caused the personal data breach by wrongful conduct.

Our advisors offer free legal advice and can call you for a no-obligation telephone consultation. They will assess if you are eligible to make a claim. We are then able to determine whether a data breach solicitor from our panel could help you.

To find out more, continue reading this article. Otherwise, call the number above, or connect instantly using our live chat service that pops up on your screen.

Choose A Section

Guidance On Claiming Compensation After A Data Breach Involving Tax Information
What Is A Tax Information Data Breach?
Examples Of Data Breaches Involving Tax Information
How Much Could I Get For A Tax Information Data Breach?
What Are No Win No Fee Solicitors?
Further Information About Tax Information Data Breaches

Guidance On Claiming Compensation After A Data Breach Involving Tax Information

Tax information regards any documentation or information that relates to the tax status of an individual. In the UK, Her Majesty’s Revenue & Customs (HMRC) plays a significant part in how and why your tax information is collected. As data controllers, the HMRC, employers and accountants can hold personal information including:

Unique Taxpayer Reference
National Insurance Number
Gender
Marital status
Bank account data
Information about your income
Employment status

Organisations can store personal data on you, such as your name, title, home address, email address and phone number. Personal data is information that may directly or indirectly identify you. Some categories of personal data, such as biometric data, are considered more sensitive and therefore require more protection.

A data controller decides the purpose of collecting personal data and how it will be used. On the contrary, a data processor, usually an external party, processes personal data on behalf of a data controller.

If a data controller or data processor’s wrongful conduct leads to a personal data breach, you might be able to make a data breach claim. However, you must also have suffered financial loss or psychological harm due to the breach.

Get in touch with our team for a free no-obligation consultation and find out if you are eligible for a claim.

What Is A Tax Information Data Breach?

The Information Commissioner’s Office (ICO) is an independent body that ensures that organisations comply with data protection laws in the UK.

A personal data breach is a security incident that leads to your personal data being compromised unlawfully or accidentally. Your personal data would be lost, destroyed, altered, accessed, or disclosed.

However, to be entitled to claim for a tax information data breach, you must be able to prove that:

A data breach has occurred involving your personal data; and
The defendant’s wrongful conduct caused the breach to happen; and
You suffered mentally and/or suffered a financial loss

It’s worth noting that typically you need to make a claim within 6 years. However, a 1-year time limit sometimes applies if you are claiming against a public body. Our advisors could verify if you are within the time limit.

Examples Of Data Breaches Involving Tax Information

When you think of a tax information data breach, you might associate such a security incident with criminal activity. For example, phishing scams or ransomware threats. However, human error is also a major cause of data breaches. Here are some examples:

Unredacted personal information could be published in an online report
Your tax demands are sent to the wrong postal address, despite your correct address being on file
An email containing your personal data is sent to the wrong recipient, allowing an unauthorised person to access your information

ICO Statistics For Data Breaches

The latest data security incident trends published by the ICO show there were 2,172 data breaches in the most recent quarter of 2021/22. Excluding other non-cyber incidents, the top five common ICO data breach reports included:

Data emailed to incorrect recipient (381)
Unauthorised access (229)
Phishing (176)
Data posted or faxed to incorrect address (217)
Ransomware (142)

How Much Could I Get For A Tax Information Data Breach?

If you claim for a tax information data breach, you may receive compensation for non-material damage. This type of damage refers to any psychological injuries inflicted by the data breach, such as anxiety or post-traumatic stress disorder.

To prove mental harm, it would be useful to arrange a medical assessment. A solicitor from our panel may arrange this for you as part of a data breach claim.

Previously, it was only possible to claim for psychiatric damage if you had suffered financial loss. However, following Vidal-Hall and Others v Google Inc (2015), the Court of Appeal ruled you may claim for psychological injuries without having to have suffered financial harm.

Therefore, we are able to take compensation ranges from the 16th edition of the Judicial College Guidelines (JCG), which was published in April 2022. The JCG is a document used by legal professionals to value injuries based on the outcomes of past settled court cases. Please take note that the figures featured in the compensation table below are just estimations.

Injury	Compensation Range	Notes
Severe Psychiatric Damage	£54,830 to £115,730	Factors that influence the size of the award within this bracket include the impact on your ability to cope with life and maintain relationships with family or friends.
Moderately Severe Psychiatric Damage	£19,070 to £54,830	The prognosis is markedly better than above, but complications may still arise.
Moderate Psychiatric Damage	£5,860 to £19,070	Despite ongoing symptoms, the prognosis is a lot more optimistic.
Less Severe Psychiatric Damage	£1,540 to £5,860	Regular activities are still affected but the prognosis is good.
Severe Post-Traumatic Stress Disorder	£59,860 to £100,670	All aspects of your life are badly affected and you may suffer from nightmares.
Moderately Severe Post-Traumatic Stress Disorder	£23,150 to £59,860	Specialist support may help you, however symptoms still persist.
Moderate Post-Traumatic Stress Disorder	£8,180 to £23,150	Symptoms continue, but a recovery is expected.
Less Severe Post-Traumatic Stress Disorder	£3,950 to £8,180	A full recovery is likely to be made within one or two years.

Definition Of Material Damage

Another head of damage you may claim for is material damage, which relates to any losses caused by a data breach. For example, you might suffer a loss of earnings because the stress of a tax information data breach causes you to take time off work. Additionally, you might need to pay for prescriptions to help you cope with your stress. Therefore, it would be useful for you to keep hold of your wage slips and receipts to prove any financial losses.

If you would like a more accurate estimate of what you could be owed, speak to an advisor. They could connect you with a solicitor from our panel, but only if your claim holds up.

What Are No Win No Fee Solicitors?

A tax information data breach could impact your finances. Subsequently, you might think taking legal action is out of reach. However, No Win No Fee solicitors offer a feasible way to fund legal representation without incurring hidden costs or upfront solicitor fees.

Sometimes known as a Conditional Fee Agreement, a No Win No Fee agreement means you’ll only pay your solicitor if your claim is successful. A solicitor will take a legally capped fee from your winnings if so. On the contrary, you won’t pay solicitor fees if your claim fails.

Ask About Making A Tax Information Data Breach Claim

Our panel of solicitors process claims on a No Win No Fee basis in order to give every claimant a fair chance of seeking compensation. If you would like to see if you are eligible for a No Win No Fee data breach claim, you may:

Call the number at the top of this page
Use our live chat feature for an instant response
Otherwise, use our make a claim form

Further Information About Tax Information Data Breaches

We have now come to the end of our guide on making tax information data breach claims. Before you go, here are some resources that may help you.

Report a breach – How to notify the ICO of a data breach.

Mental health services – Find NHS mental health services near you.

Data protection – Government guidance on data protection.

Other Data Breach Guides

Please don’t hesitate to get in touch if you feel like you are ready to make a tax information data breach claim.

Publisher Ruth Voss

Writer Lewis Jaques