HMRC offering thousands in rewards for “grassing people up” for tax fraud

Britons can now earn thousands of pounds for reporting significant tax fraud to HMRC under a new incentive scheme introduced in the Autumn Budget. The programme, which came into effect on 26 November, forms part of a major Government crackdown on tax evasion estimated to cost the UK around £47 billion every year.

Under the strengthened reward system, individuals who provide intelligence leading to the recovery of more than £1.5 million in unpaid tax could receive between 15% and 30% of the money reclaimed. HMRC says cases of this scale typically involve wealthy individuals, large corporations or complex offshore arrangements. The revamped scheme brings the UK closer in line with systems already operating in the United States and Canada, where whistleblowers routinely receive substantial rewards.

Law firm Leigh Day has already reported a surge in enquiries from people seeking clarification on how the system works, according to The Sun. However, HMRC stresses that financial compensation is not guaranteed and will only be considered when strict criteria are met. Rewards will not be given if the informant was involved in the tax evasion themselves, encouraged the wrongdoing, or if submitting the information breaches legal or professional obligations. Anonymous reports also do not qualify for payment.

Despite this, the public is being urged to come forward with credible information. HMRC warns potential whistleblowers not to carry out their own investigations or tell others they have made a report. Submissions can be made through the GOV.UK website, where individuals are asked to provide detailed information about the suspected fraud, how long it has been happening and how they became aware of it.

The new scheme follows a record rise in tax fraud tip-offs. HMRC received 164,670 reports in 2024–25, a 9% increase on the previous year, although total reward payments fell by 13% to £852,438. Government officials hope the increased incentive will encourage more people to report high-value cases and help recover millions of pounds in lost revenue.