HMRC Expands Informant Reward Scheme: 15–30% Payouts for High-Value Tax Fraud Reports

On 8 July 2026 HM Revenue & Customs released new support materials — including a webinar and explainer video — for its Strengthened Reward Scheme for informants who report serious tax fraud and avoidance. The scheme is a significant expansion of HMRC's existing lower-value informant programme.

The launch arrives as HMRC reports record compliance yield of £48 billion in 2024–25 and targets £50.4 billion for 2025–26. With the estimated tax gap at 6.4% (£59.2 billion) for 2024–25, enforcement investment and third-party intelligence remain central to the department's strategy.

Informants may receive between 15% and 30% of the value of additional tax collected by HMRC because of information they provide — but only where recovery reaches at least £1.5 million. Rewards are discretionary, not guaranteed, and are paid once tax has been collected and the matter is resolved.

The scheme specifically targets serious non-compliance involving large companies, wealthy individuals, offshore structures, and avoidance schemes. The existing scheme for lower-value reporting remains in place alongside the strengthened tier.

HMRC cannot provide feedback on reports made. Informants should not tell others they have submitted information. HMRC will contact eligible reporters if more detail is needed or if a reward may apply.

Anyone with information about suspected tax fraud or avoidance can report it through HMRC's online Fraud Reporting Gateway — search 'report fraud HMRC' on GOV.UK. To be considered for a reward, informants must provide contact details as part of their report.

The new explainer video sets out what the scheme covers, what rewards eligible informants could receive, and how information helps HMRC tackle the tax gap and fund public services. A webinar provides additional guidance for those considering a report.

Reports should focus on factual, verifiable information — entity names, transaction patterns, offshore connections, and documentary evidence strengthen the case for investigation and eventual recovery.

The strengthened scheme signals HMRC's continued focus on high-value evasion and avoidance — particularly where sophisticated structures obscure beneficial ownership or shift profits offshore. Large corporates and wealthy individuals face elevated third-party scrutiny risk.

For compliant businesses, the scheme reinforces why robust transfer pricing documentation, beneficial ownership registers, and accurate VAT and PAYE filings matter. HMRC's AI-assisted triage and expanded compliance workforce mean tip-offs feed faster into casework.

Agents and advisers should remind clients that whistleblower reports are one intelligence stream among many — HMRC also uses data matching, CONNECT analytics, and international exchange of information under CRS and DAC.

Review your tax governance: ensure R&D claims, transfer pricing, disguised remuneration, and VAT partial exemption positions are documented and defensible. Gaps that look like deliberate non-compliance attract both HMRC investigation and potential informant reports.

If you discover historical errors, voluntary disclosure through HMRC's digital channels typically produces better outcomes than waiting for third-party intelligence to trigger an investigation.

FinnAccountings Compliance Agent flags anomalies in VAT, PAYE, and corporation tax filings before submission — start a free trial to keep records audit-ready and reduce exposure to informant-driven investigations.