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.. As a result, HMRC have moved from a hidden and discretionary process to a transparent and structured system. Furthermore, it appears their aim is to further incentivise members of the public to help close what they perceive to be the tax gap. This guide explains how the HMRC reward scheme works, who qualifies, how much you can earn, and how to report tax evasion safely.
Why have HMRC Introduced a New Reward Scheme?
Tax evasion costs the UK billions of pounds annually. Whilst, previously HMRC has always relied on information from the public, until now, rewards were rare, low in value, and never guaranteed. However, the Autumn 2025 Budget has transformed that by funding a formal reward system.
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.
Where a report enables HMRC to collect at least £1.5 million in unpaid tax, you could receive between 15% and 30% (excluding penalties and interest). Although, eligibility criteria must be met and rewards are given at HMRC's discretion and are not guaranteed.
However, HMRC have stipulated that before making a report about serious tax avoidance or evasion, you must not:
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
HMRC has made the process simple and secure. Whilst you can report anonymously, if you wish to be eligible for a reward, you must provide your contact details.
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.
Summary
Whilst we've discussed in the context of making a report to HMRC, equally if you're not guilty of tax evasion, then you shouldn't be a concerned if someone falsely reports you. Whilst HMRC might investigate, they will obviously dismiss false reports.
Equally, if you know, or are concerned, that you might have committed tax avoidance or evasion then it is best to get advice from a tax specialist as soon as possible. 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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