HM Revenue and Customs (HMRC) has handed out £1.4million to tax whistleblowers as a reward during the 2025-26 financial year with a record-breaking 170,992 reports being submitted to the authority.
The surge in tip-offs about friends, neighbours, colleagues and businesses suspected of underpaying tax follows Labour’s decision to bolster the informant reward programme at the last Budget.
The enhanced scheme, which mirrors the American approach, now offers informants between 15 and 30 per cent of additional tax recovered when their information directly results in HMRC recouping more than £1.5million.
This marks a significant increase from the previous year, when whistleblowers collected £852,438.
HMRC hands out £1.4m to tax whistleblowers as thousands under investigation
|
GETTY
Legal experts anticipate a dramatic rise in both the volume and calibre of whistleblower submissions under the revamped system.
Hinesh Shah, a partner at law firm Pinsent Masons, said: “We’re expecting that the number and quality of whistleblower reports to HMRC will increase dramatically under the new reward systems which is based on the US system.”
He noted that American tax informants received $123.5million in rewards during the most recent reporting period, adding: “If HMRC starts issuing individual awards that go into the millions of pounds then that is going to lead to a radical change in behaviour.”
Tim Stovold, of Moore Kingston Smith, suggested the £1.4m figure could multiply tenfold should HMRC match American enthusiasm for the programme.
Tax snitchers are reaching to HMRC – have you made the call??
|
PALabour has invested in bolstering HMRC’s informant initiative
|
GETTYNimesh Shah, the CEO of Blick Rothenberg, said: “It won’t be good news for small businesses if HMRC is cracking down on their non-compliance, after all the things they’ve been hammered with.”
He pointed out that many smaller firms lack the resources to employ accountants capable of navigating complex tax rules.
These businesses are already contending with mounting expenses under Labour, including higher minimum wage requirements, increased employer National Insurance contributions and reduced business rates relief.
HMRC has defended the strengthened programme as a means of encouraging both ordinary citizens and professionals to come forward with information about tax evasion.
Andy Leggett, HMRC’s director of Risk and Intelligence Services, said: “Tax fraud is a crime that cheats honest taxpayers and diverts money from vital public services.
“The strengthened reward 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.”
Separately, the tax authority recovered £266million through capital gains tax (CGT) investigations during 2024-25, with 9,800 cases concluded.
This represents a 46 per cent rise compared to the preceding year, according to data obtained by tax consultancy Lubbock Fine.

