HMRC pushes its strengthened reward scheme for tax fraud informants

HMRC has published new guidance videos to make it easier for people to blow the whistle on serious tax fraud and avoidance — and to remind them there may be a substantial financial reward for doing so.

New tools to encourage reporting

HM Revenue and Customs has released fresh support materials for its strengthened reward scheme, aimed at helping informants report serious tax fraud and avoidance. The package includes a recorded webinar and a short explainer video, both offering practical guidance on how to report wrongdoing and what information HMRC actually needs.

The scheme is squarely targeted at high-value cases. Informants may be eligible for a financial reward where the information they provide leads to HMRC recovering at least £1.5 million in unpaid tax. That threshold makes clear this is not about minor discrepancies — it is about serious, large-scale non-compliance.

The two pieces of content are pitched at different audiences. The two-minute YouTube video is a general explainer aimed at employees, family members, friends or acquaintances of high-net-worth individuals or businesses suspected of serious tax evasion or avoidance. It sets out what the scheme is, what rewards eligible informants could receive, and how any information provided might help HMRC close the tax gap and fund public services. The more technical webinar is aimed at accountants, lawyers and professional bodies, walking through how to report, what happens after a report is made, and how confidentiality is protected.

How the rewards work

Under the strengthened scheme, informants who meet the eligibility criteria could receive between 15% and 30% of the value of any additional tax collected by HMRC as a result of the information they provide. These rewards are not automatic: they are awarded at HMRC's discretion, are not guaranteed, and are only paid once the tax has been collected and the matter resolved.

The strengthened scheme specifically targets serious non-compliance involving large companies, wealthy individuals, offshore structures and avoidance schemes. It is a significant expansion of the existing arrangements for lower-value reporting, which remain in place alongside it.

What HMRC said

Andy Leggett, HMRC's Director of Risk and Intelligence Services, set out the thinking behind the approach.

"Tax fraud is a crime that cheats honest taxpayers and diverts money from vital public services. This scheme is designed to incentivise people to do the right thing, whether they are members of the public or industry professionals such as accountants and lawyers," he said.

"Your report could make a meaningful difference."

How to report

Anyone with information about suspected tax fraud or avoidance can report it through HMRC's online Fraud Reporting Gateway, reachable by searching "report fraud HMRC" on GOV.UK. To be considered for a reward, informants need to provide their contact details as part of the report, and HMRC advises them not to let anyone else know they have made one. The department will make contact if it needs more information or if the informant is eligible for a reward — though it cannot provide feedback on reports made.

Implications

The design of this scheme tells you a good deal about where HMRC believes the biggest risks lie. By setting a £1.5 million recovery threshold and pointing explicitly at large companies, wealthy individuals, offshore structures and avoidance schemes, the department is signalling that it wants inside information on complex, high-value arrangements — the kind that are hardest to detect from the outside.

The decision to court accountants and lawyers directly is notable. Professional advisers often have the clearest view of how a scheme really works, and a reward of up to 30% of the tax recovered is a meaningful incentive on a multi-million-pound case. For businesses and individuals engaged in aggressive planning, the calculus shifts: the people best placed to understand the arrangements are now being actively encouraged, and potentially paid, to come forward. Whatever one thinks of paying for information, the strengthened scheme is a clear statement that HMRC intends to make serious avoidance harder to keep quiet.

This article discusses tax fraud and avoidance in a factual, informational context. Anyone with concerns about a specific case should seek professional advice or use the official HMRC reporting channels.