Households across the United Kingdom could be in line for multi-million-pound windfalls by informing on friends and neighbours who evade tax, under a radical new incentive scheme proposed by HM Revenue and Customs (HMRC).
How the New HMRC Rewards Scheme Works
The proposed plan, supported by the Labour Party government, would see informants receive up to 30% of the taxes recovered following a successful tip-off. This marks a significant shift from the current system, where HMRC only pays discretionary awards based on factors like the amount recovered and investigative time saved.
The tax authority believes that offering higher, fixed-percentage rewards will act as a powerful incentive, encouraging more people to come forward with information about tax fraud. This crackdown aims to recover vast sums lost to the Treasury each year.
What Can You Report to HMRC?
Members of the public can report individuals or businesses they suspect are not paying their fair share of tax or are committing other fraud against HMRC. The scope of reportable offences is broad and includes:
- Tax avoidance or evasion.
- Fraud related to Child Benefit or tax credits.
- Hiding or moving assets, cash, or cryptocurrency.
- Trade in illicit alcohol, tobacco, or road fuels.
- Smuggling of precious metals.
- Importing or exporting goods without a licence or those subject to sanctions.
HMRC emphasises that if you are in immediate danger or facing an emergency, you should dial 999 and ask for the police.
The Process of Making a Report
To submit information, you need to fill in an online form on the HMRC website, detailing what you know about the person or business in question. The taxman states that it is helpful if you share your name, location, and contact details, as this allows them to follow up for more information if needed.
However, providing personal details is not mandatory. Any information you do supply will be treated as private and confidential. HMRC advises against sending supporting documents initially; you can simply indicate that you have them. If you have provided contact details, investigators will request further evidence if necessary.
For your own safety, HMRC strongly warns: "You should not try to find out more or let anyone know you’re making a report." The scheme, first reported on December 5, 2025, represents one of the most aggressive public-facing strategies in HMRC's ongoing battle against tax fraud.
