Overview
- HMRC’s strengthened reward scheme took effect on 26 November after the Autumn Budget, focusing on cases typically involving high net worth individuals, large companies or offshore arrangements.
- Awards are not automatic, with HMRC retaining full discretion under strict eligibility rules, and payments may take years due to lengthy investigations.
- Anonymous reports are accepted but are not eligible for payment, and HMRC advises informants to avoid self-investigation and to keep reports confidential for safety.
- Ministers present the policy as part of efforts to tackle an estimated £47bn annual tax gap, with HMRC receiving 164,670 tip-offs in 2024–25 but paying £852,438 in rewards.
- Business owners and advisers warn the scheme could encourage malicious or speculative claims and cause harm to those wrongly accused, while law firms report rising enquiries about how it operates.