Following the Autumn 2025 Budget a New HMRC Reward Scheme has been introduced. Subsequently details were published in November 2025 marking a major shift in HMRC’s approach to whistleblowing and tax enforcement..
In qualifying cases, individuals could potentially receive between 15% and 30% of the additional tax recovered.
In this guide, we explain how the HMRC reward scheme works, who may qualify for a payment, how much you could potentially receive and how to report suspected tax evasion safely.
Why have HMRC Introduced a New Reward Scheme?
HMRC estimates that billions of pounds of tax remain unpaid each year because of tax evasion and other forms of non-compliance.
As a result, HMRC continues to invest heavily in compliance activity and increasingly uses data, technology and information from third parties to identify potential tax irregularities.
Historically, HMRC has also relied on information provided by members of the public. However, rewards for useful information were relatively rare, generally modest and never guaranteed.
The strengthened HMRC reward scheme is intended to change this by providing a much greater financial incentive for individuals with high-quality information about serious tax non-compliance to come forward.
How Does the HMRC Reward Scheme Work?
Under the strengthened scheme, HMRC may make significantly larger payments to individuals who provide information that leads to the recovery of substantial amounts of tax.
Importantly, providing information does not automatically entitle someone to a reward. HMRC will consider whether the information meets the relevant criteria and whether it results in additional tax being recovered
Therefore, the quality and usefulness of the information provided will be particularly important.
The aim of this new scheme is to achieve the following outcomes:
HMRC believes that stronger financial incentives will significantly increase high-quality reporting of serious tax evasion.
The New HMRC Rewards for Reporting Tax Evasion
Under the Strengthened Reward Scheme, you could receive a significant cash reward where you report significant tax evasion or tax fraud.
How Much Could the HMRC Reward Be?
Under the new approach, qualifying informants could potentially receive between 15% and 30% of the additional tax recovered by HMRC.
However, the enhanced reward scheme is aimed primarily at significant cases. The relevant thresholds and eligibility requirements therefore need to be considered carefully.
For example, where information leads HMRC to recover a substantial amount of previously unpaid tax, the potential reward could be considerably higher than under HMRC's previous discretionary arrangements.
Nevertheless, a reward is not guaranteed. HMRC retains discretion over whether a payment is made.
Who Could Qualify for an HMRC Reward?
However, not everyone who provides information to HMRC will qualify for a payment.
In particular, HMRC may refuse a reward where the relevant eligibility requirements are not satisfied. They have stipulated that before making a report about serious tax avoidance or evasion, you must not:
Who Cannot Qualify for an HMRC Reward?
Furthermore, HMRC have detailed the circumstances, where no reward will be forthcoming. These are as follows:
Typically the transactions reportable under the Strengthened Reward Scheme are hidden offshore bank accounts or investments, VAT fraud and carousel schemes, plus falsified company expenses or records. Although, this list is by no means exhaustive.
However the new HMRC rewards for reporting tax evasion apply only when you report criminal or fraudulent behaviour. Furthermore, whilst some might consider Avoidance schemes morally questionable they are often legal. Therefore, they are not within the remit of this reward scheme, unless fraud is involved.
How to Report Tax Evasion to HMRC
If you believe you have information about serious tax evasion, it is important to provide HMRC with as much accurate and relevant information as possible.
Where possible, information should be factual rather than based purely on suspicion or speculation.
In addition, anyone hoping to qualify for a reward should consider carefully how and when the information is provided, as the eligibility requirements may affect whether a payment can ultimately be made.
You can report tax evasion using HMRC's online facility or call their fraud hotline. When reporting, you must include, who is involved, what type of fraud is taking place and how long it has been happening. Additionally you should provide evidence (documents, bank details, etc.)
The more detailed and accurate your report, the more likely you are to receive a reward.
Tax Evasion vs Tax Avoidance: What's the Difference?
Importantly, tax avoidance and tax evasion are not the same.
Broadly speaking, tax avoidance involves arrangements designed to reduce a tax liability within the law, although HMRC may challenge arrangements it considers ineffective or abusive.
By contrast, tax evasion involves deliberate dishonesty, such as intentionally concealing taxable income or providing false information to HMRC.
Therefore, the strengthened reward scheme should not be viewed simply as a reward for reporting someone who has legitimately arranged their affairs in a tax-efficient way. Its focus is serious tax non-compliance and fraud.
HMRC Reward Scheme: Key Takeaways
In summary, the strengthened HMRC reward scheme represents a significant change in the financial incentives available to individuals who provide HMRC with valuable information about serious tax evasion.
However, a reward is not guaranteed simply because information is provided. Strict eligibility requirements apply, and HMRC will consider the quality of the information and the additional tax ultimately recovered.
At the same time, receiving a false or inaccurate report does not mean HMRC will automatically conclude that tax evasion has occurred.
Finally, anyone concerned about errors in their historic tax affairs should consider obtaining professional advice before HMRC makes contact. Making an appropriate voluntary disclosure can often result in a more favourable outcome than waiting for HMRC to identify the problem.
For example, if you are concerned about historic cryptocurrency transactions. The sooner you come forward and engage with HMRC’s the more favourable the outcome will be.
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