HMRC is encouraging more people to report serious tax fraud and avoidance by enhancing its reward scheme for informants who provide valuable intelligence.
The newly strengthened Reward Scheme is aimed at tackling high-value tax non-compliance involving large companies, wealthy individuals, offshore structures and complex tax avoidance arrangements.
Under the scheme, individuals who provide information that leads to HMRC recovering at least £1.5 million in unpaid tax may be eligible for a financial reward.
Subject to meeting the eligibility criteria, informants could receive between 15% and 30% of the additional tax recovered as a direct result of the information they provide. However, HMRC has stressed that rewards are discretionary, are not guaranteed and will only be paid once the tax has been successfully recovered and the case has been concluded.
The enhanced scheme represents a significant expansion of HMRC's existing reward programme, which will continue to operate for reports involving lower-value tax losses.
To encourage reporting, HMRC has also produced a webinar and a short explainer video outlining how to report suspected tax fraud, the type of information that is most useful to investigators and how the reward process works.
Andy Leggett, HMRC's Director of Risk and Intelligence Services, said tax fraud deprives the public purse of funds needed for essential public services and that the strengthened scheme is intended to encourage people to come forward with information. He noted that reports can be made by members of the public as well as professionals such as accountants and solicitors who become aware of serious tax wrongdoing.
The announcement reflects HMRC's continued focus on reducing the UK's tax gap and tackling sophisticated forms of tax evasion and avoidance. As the tax authority expands its compliance activity and data analysis capabilities, intelligence from individuals is expected to play an increasingly important role in identifying serious cases of non-compliance.
For anyone considering making a report, HMRC has emphasised the importance of providing clear, detailed and accurate information to help investigators assess and pursue potential cases.
