​Recent changes (2025) — Why HMRC informers are more incentivised than ever

New reward scheme for tip-offs

In March 2025, the government announced a formal, strengthened incentive scheme mirroring US-style tax whistleblower programmes.

Under the new rules, in cases where recovered unpaid tax exceeds £1.5 million, informants may now receive up to 30% of the additional tax collected.

This represents a substantial upgrade from the prior discretionary reward system. The aim is to encourage high-value tips that expose serious avoidance or evasion, especially involving large corporates, wealthy individuals, offshore structures, or complex schemes.

Focus on serious non-compliance

Under the strengthened approach, HMRC is placing its enforcement focus on serious non-compliance rather than minor under-payments.

Additionally, broader regulatory changes — such as those tackling fraudulent “umbrella company” arrangements — are scheduled for implementation from April 2026.

This signals that HMRC will be scrutinising income reporting more closely across a wider range of sectors.

In short: 2025 marks the start of a more robust, data-driven, and informer-friendly era — making the role of HMRC informers far more influential and potentially more lucrative.

How HMRC informers help — what kind of information is useful

• Insider knowledge: Former employees or advisers may know about hidden income, bogus invoices, offshore holdings or other irregularities that slip through standard compliance checks. These disclosures often lead to investigations that would otherwise be impossible.

• Third-party alerts: Data shared by banks, financial institutions, estate agents (e.g. via mandatory reporting under anti-money laundering rules) can feed into HMRC’s systems and help detect suspicious patterns.

• Supporting evidence: Informers sometimes provide documents — such as emails, contracts, transaction records — which offer concrete proof and lead to successful enforcement actions.

• Triggering complex investigations: Especially with complex avoidance or evasion schemes, human intelligence from informers helps HMRC understand the structures used and gather evidence that data alone cannot reveal.

What this means for landlords, freelancers and businesses

If you are a landlord, freelancer, or business owner, the presence of active HMRC informers means:

• HMRC’s scrutiny on rental income, property gains, side-hustle earnings and corporate profits is likely to increase.

• Avoidance schemes (or even borderline planning strategies) may attract greater enforcement risk — especially if they involve advisors, third parties or complex structures.

• Compliance must be taken seriously: accurate record-keeping, transparent reporting, and honest tax returns are more important than ever.

If you mis-report, there’s now a greater chance that someone might report you — and potentially trigger a full investigation.

​How Trueman Brown can help

At Trueman Brown we understand how daunting the evolving tax landscape can be — especially with the strengthened role of HMRC informers.

We offer comprehensive support to help you stay fully compliant, including:

• Detailed tax-compliance reviews, ensuring all income (rental, business, side-hustles) is properly accounted for.

• Timely and accurate submissions, mitigating risk of penalties, interest, or enforcement attention.

• Strategic tax planning and optimisation, within the bounds of the law — helping you legitimately reduce liability while staying safe.

If you want to check your affairs or plan for the year ahead, contact us at mark@truemanbrown.co.uk or call 01708 397262 — we’re here to help you navigate and stay compliant.

Frequently Asked Questions (FAQ) about HMRC informers

Q: What qualifies someone to be an HMRC informer?
A: Anyone who provides credible information about suspected tax evasion or avoidance — often insiders, advisors, former employees, banks or financial institutions — can act as an HMRC informer.

Q: Do informers have to provide personal identification?
A: Reports can often be submitted anonymously through HMRC’s official reporting channels, though anonymous tipsters may be excluded from the highest reward tiers.

Q: How much can an informer get paid under the new scheme?
A: For cases where at least £1.5 million of unpaid tax is recovered, informers may receive up to 30% of the additional tax collected.

Q: Is the reward guaranteed?
A: No. Payment is discretionary, depends on the quality and impact of the information, and only awarded after successful recovery or enforcement by HMRC.

Q: Does being an informer protect me from liability?
A: No — whistleblowing doesn’t necessarily absolve wrongdoing. If you yourself engaged in the misconduct, reporting it does not automatically shield you from investigation or prosecution.

Q: Should I consult an accountant or tax adviser if I think HMRC informers might flag me?
A: Absolutely. Having up-to-date, accurate records and professional advice is your best defence. Expert advisers — such as at Trueman Brown — can help you correct mistakes before they become problems.