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Brits can now earn thousands of pounds for reporting friends, neighbours or anyone else they suspect of committing serious tax fraud. It comes after HMRC introduced a new reward scheme aimed at helping the Government recover large amounts of unpaid tax. The scheme was confirmed in the Autumn Budget and took effect immediately on November 26.
Ministers say it is part of a wider crackdown on tax fraud, which costs the Treasury an estimated £47billion a year. Under the new rules, people who give HMRC useful information about high-value tax evasion could receive a reward worth 15% to 30% of the tax recovered. To qualify, the information must help HMRC recover more than £1.5million, meaning rewards could run into the thousands.
The Strengthened Reward Scheme brings the UK closer to systems already used in the US and Canada, where whistleblowers are paid large “bounties” for reporting tax evasion.
Law firm Leigh Day said it had already been contacted by several people asking how the scheme works, The Sun reported.
HMRC says cases involving more than £1.5million usually relate to wealthy individuals, large companies or offshore tax arrangements. The reward is not guaranteed, and HMRC will decide whether a payment is made.
There are also strict rules on who can receive money. Rewards will not be given if the person reporting the fraud:
- obtained the information while working as a civil servant
- was involved in the fraud
- is acting on behalf of someone else
- is legally required to disclose or not disclose the information
- provides information HMRC already knows or could easily find
- got the information from someone who is not eligible for a reward
People can still report tax fraud anonymously, but anonymous reports cannot receive any payment.
HMRC also warns whistleblowers not to try to investigate the fraud themselves or tell others that they are making a report.
Reports can be made online through GOV.UK. HMRC asks for a clear explanation of the suspected fraud, how long it has been happening and how the person found out about it.
They also want to know what relationship the whistleblower has with the person or business involved. Evidence cannot be uploaded online, but people can say what documents they have.
It comes after the number of tip-offs about tax fraud reached a record high.
HMRC received 164,670 reports in 2024-25, up 9% on the previous year. Despite this, total reward payments fell to £852,438, down 13%.
The new scheme is designed to boost those numbers by offering bigger rewards for information linked to major tax recoveries.
HMRC hopes it will encourage more members of the public to come forward, especially in cases involving large-scale evasion.
