In HMRC’s Transformation Roadmap published in August 2025, they announced the introduction of a reward scheme for people who report serious tax avoidance or evasion.
Now, a few months on and post the Autumn 2025 Budget, HMRC have released guidance on the Strengthened Reward Scheme detailing how individuals who report avoidance or evasion can receive a financial reward. This is part of the government’s efforts to close the tax gap and crack down on tax avoidance and evasion.
Despite being granted more staff and information powers (we wrote about HMRC’s powers recently), they are turning to the public for assistance too and offering rewards for those that speak up.
Who is eligible for a reward?
You can be rewarded if you provide information to HMRC that helps to collect large amounts of unpaid tax (£1.5 million or more).
You cannot receive a reward if:
- You obtained the information whilst working for the government
- You are the taxpayer involved
- If HMRC already have the information
- If a reward would directly or indirectly fund illegal activity
- If you are required by law to disclose the information
- If you are required by law to NOT disclose the information
- You got the information from someone who is not eligible for the reward
- You make the report anonymously
How much would you get?
The reward is between 15% and 30% of the tax collected (not including penalties and interest). HMRC note that rewards are at HMRC’s discretion and are not guaranteed.
Rewards will not be issued until the cases are closed which could be several years from the initial report.
How do you report?
If you become aware of tax avoidance or evasion that should be reported, it’s important to protect yourself and others by not attempting to find out more about the activity and to not encourage anyone to commit a criminal offence to get more information. It is also important that you do not let anyone know you are making a report.
Provided you are in a position to make a report to HMRC you should do so using their online form or by contacting the HMRC Fraud Hotline. You will be asked about the type of activity you are reporting, how you know about it, an estimate of the value of tax loss and details of any evidence you have.
Once received, HMRC will only contact you if more information is needed or if you are eligible for a reward.
Even if you are not eligible for a reward, or if the unpaid tax is not large enough, you should still report any tax avoidance or evasion to HMRC.
What if I am worried someone will make a report about me?
If you have not committed tax avoidance or evasion, then it should not be a concern if someone makes a false report about you. HMRC may investigate or dismiss obviously false reports.
If you know, or are concerned, that you might have committed tax avoidance or evasion then it is best to get advice from a specialist in the area as soon as possible. The sooner you come forward and engage with HMRC’s processes (for example, utilising HMRC’s COP9 facility), the better the outcome will be.
If you would like to discuss voluntary disclosures including COP9 in more detail, or any related matters, please contact Menzies Tax Disputes and Disclosures team below:
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