The UK’s first ever whistleblower reward scheme is set to be unveiled at the Budget on November 26, with informants in line for a cut of any taxes recovered
Whistleblowers could soon be in line for millions of pounds as HM Revenue & Customs prepares to roll out a US-style incentive scheme to crack down on tax fraud. Informants could receive up to 30% of any taxes recovered thanks to their tip-offs – potentially turning whistleblowers into some of the UK’s richest citizens overnight.
The programme, expected to be unveiled at the Budget on November 26, is the first of its kind in the UK. It is aimed at large-scale tax evasion, which HMRC estimates cost the Treasury £5.5bn in 2022-23 – though experts warn the true figure is likely far higher.
“By providing a financial safety net for whistleblowers in the form of monetary rewards, HMRC is poised to supercharge its enforcement capabilities,” said Mary Inman, a US lawyer at Whistleblower Partners.
She told the FT: “Well-placed, financially motivated whistleblowers and their lawyers will be force multipliers for the UK’s efforts to fight tax fraud.”
The initiative is part of Chancellor Rachel Reeves’ wider strategy to plug a fiscal black hole estimated by economists at £20bn–£30bn. The UK loses roughly £47bn a year in unpaid taxes, and this move is designed to bring some of that cash back into government coffers.
HMRC has looked across the Atlantic for inspiration, meeting US agencies including the Internal Revenue Service over the summer. Since 2007, the IRS has paid $1.3bn to whistleblowers from $7.4bn recovered, offering 15–30% of taxes recouped on cases with at least $2mn recovered.
The UK has traditionally shunned large-scale rewards, arguing that people should “do the right thing” without financial incentives. But lawyers and prosecutors – including the director of the Serious Fraud Office – have long called for such schemes to boost prosecutions for economic crime.
Currently, HMRC pays out tiny sums under its existing programmes. In 2023-24, total whistleblower rewards were under £1m, dwarfed by the $279mn single reward handed out by the US Securities and Exchange Commission the same year.
The new scheme will target high-value fraud while running alongside HMRC’s existing smaller programmes. Experts say Britain could even benefit from whistleblowers outside the UK, as US agencies face staffing shortages under the Trump administration. A Treasury spokesperson refused to comment to the FT on “speculation” in advance of the Budget.
