Workers could soon be pocketing big rewards for reporting tax-dodging bosses, as the UK government prepares to launch a new whistleblower scheme later this year—potentially offering up to 25% of the extra tax recovered.
James Murray, Exchequer Secretary to the Treasury, unveiled the plan during a speech to the Chartered Institute of Taxation, outlining HMRC’s updated vision to tackle serious tax avoidance. The new scheme aims to target large corporations, wealthy individuals, offshore arrangements, and aggressive avoidance schemes, drawing inspiration from similar whistleblower programmes in the United States and Canada.
“Informants will be rewarded with a percentage of any tax taken as a result of their actions,” said Murray. “This will complement HMRC’s existing reward mechanisms.”
A Serious Step Against Serious Evasion
The announcement comes amid mounting concern over the UK’s growing tax gap, which has reached a record £39.8 billion, according to HMRC’s latest Measuring Tax Gaps 2024 report. The tax gap reflects the difference between the tax the government should collect and what it actually receives.
While whistleblowers are already eligible for small rewards in the UK, this new scheme is expected to significantly boost incentives, with some tipsters potentially earning tens or even hundreds of thousands of pounds. In the U.S., similar schemes have led to multi-million dollar payouts, sparking interest from finance insiders and employees aware of shady tax practices.
Who’s Likely to Be Targeted?
The scheme is tailored for high-value, complex tax dodging—not minor filing errors. HMRC will reportedly focus on:
- Large corporates using artificial profit-shifting.
- Wealthy individuals sheltering income offshore.
- Promoters of tax avoidance schemes.
- Known repeat offenders.
While full details remain under wraps, The Times has reported that informants could receive up to 25% of recovered tax, depending on the scale of the case and their role in exposing the wrongdoing.
Industry Experts: Fixing the Foundations Still Matters
While the whistleblower scheme is expected to make headlines, experts caution against viewing it as a silver bullet.
Senga Prior, chair of the Association of Tax Technicians Technical Steering Group, said:
“There’s no magic quick fix to the UK’s tax gap. The largest portion still comes from Self Assessment taxpayers—ordinary people and small businesses making mistakes or not taking proper care.”
She stressed the importance of better HMRC customer service, improved access to digital services, and the need to simplify the tax system.
Prior also noted the challenges in measuring the tax gap, calling it “an inherently imprecise process,” as past figures are routinely revised.
Public Reaction: Temptation Meets Ethics
The proposed rewards scheme has stirred mixed reactions online. On X (formerly Twitter), one user wrote:
“25% cash reward? I might start looking closer at the company books…”
Others warned of potential abuse, with one user commenting:
“Could open a can of worms. False claims? Office vendettas? Needs to be airtight.”
Still, many welcomed the idea, especially in an era of high living costs and public service funding gaps. “Tax dodgers cost us all,” another user posted. “If someone blows the whistle and stops it—pay them.”
When Will the Scheme Launch?
While no fixed date has been confirmed, the whistleblower reward programme is expected to go live later this year, according to Murray. It will run alongside HMRC’s existing reward structure and may come with its own legal and evidential thresholds to prevent misuse.
In the meantime, HMRC is encouraging the public to continue using its Fraud Hotline and online reporting tools to flag suspected tax evasion.
Final Thought
As the UK battles a ballooning tax gap and rising public scrutiny of corporate wealth, the whistleblower scheme could become one of the most powerful tools in HMRC’s arsenal. But it also raises questions about privacy, ethics, and workplace trust.
Would you turn in your boss for 25% of their unpaid tax? Let us know in the comments.
