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Tuesday, June 17, 2025

The UK's New Whistleblower Reward Scheme: A Turning Point For Tax Accountability - Mondaq

In a landmark move, HM Revenue & Customs (HMRC) has announced plans to launch a formal whistleblower award program modelled on the highly successful U.S.

United Kingdom Criminal Law

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In a landmark move, HM Revenue & Customs (HMRC) has announced plans to launch a formal whistleblower award program modelled on the highly successful U.S. Internal Revenue Service (IRS) Whistleblower Program. This initiative signals a dramatic shift in the United Kingdom's approach to tax enforcement and whistleblower engagement, one that could significantly reshape how corporate and financial misconduct is uncovered and addressed.

From informal gratitude to formalized rewards

Historically, the UK has maintained a relatively cautious stance on financially rewarding whistleblowers. While HMRC has occasionally paid out discretionary sums for helpful tips, nearly 978,256 in the last year alone, there has never been a formalized, transparent, or incentivized structure for such payments. This ad hoc approach is now poised to change.

Under the proposed model, the HMRC would implement a structured system of financial rewards for individuals who provide credible and actionable information about tax fraud. The move mirrors the U.S. IRS Whistleblower Program, which offers monetary awards of 15% and 30% of the amount recovered in cases where the whistleblower's tip leads to the collection of at least $2 million. Since its establishment in 2007, the IRS...



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