The Government is set to increase rewards for whistleblowers who provide tax fraud and evasion information. James Murray, the Exchequer Secretary to the Treasury, announced the plan at a joint ICAEW/CIOT conference on 11 March.
Under the new system, whistleblowers will receive a percentage of the tax recovered, bringing the UK’s approach closer to that of the US. In 2023/24, HMRC paid nearly £1m to whistleblowers, but the Treasury aims to offer more substantial payments. The US Internal Revenue Service (IRS) awarded $88 million (£68m) in 2023 alone, and the UK hopes to replicate this success.
The Treasury confirmed that whistleblowers could receive significant compensation based on the tax collected. This initiative will complement HMRC’s existing rewards scheme and encourage more individuals to provide valuable information.
Murray also outlined a new crackdown on ‘phoenixism’, where businesses deliberately fold to avoid repaying debts, including tax owed to HMRC. A joint effort between Companies House, HMRC, and the Insolvency Service will be introduced to tackle this practice.
These measures form part of the Government’s wider strategy to close the tax gap and recover unpaid revenues.
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