HMRC whistleblowing reward scheme could be 'transformative step' in tackling tax fraud, says Leigh Day

Under the scheme announced in this week’s Budget, the government will launch a “strengthened reward scheme” for informants who provide valuable information enabling HMRC to tackle high-value tax avoidance or evasion, modelled on the US scheme. The government has stated that for cases where tax over £1.5 million is recovered, HMRC could reward between 15% and 30% of the additional tax collected. 

Successful models in the US and Canada have clawed back billions for public funds, and it is believed that a similar scheme in the UK is likely to encourage insiders to report significant tax wrongdoing by corporations and high-net-worth individuals. 

Leigh Day has welcomed the scheme as a way to ensure that whistleblowers are adequately compensated for the crucial information that they provide, and that tax illegally withheld is returned to the Treasury to fund vital public services. 

The move comes amid growing concern that some of the most profitable corporations continue to deploy complex strategies to avoid paying tax, depriving the public purse of billions each year. 

Paul Dowling, a partner in Leigh Day’s International Corruption and Whistleblowing team, who specialises in litigating international corruption and whistleblowing cases, says he is already seeing an interest from potential informants seeking advice. 

Paul said: 

“Whistleblowers can face retaliation, blacklisting or reputational damage. They need expert guidance from the outset on how to make use of the legal mechanisms available to protect their rights and secure appropriate remedies - whether that’s an Employment Tribunal claim, a civil claim, or a complaint under the Whistleblower Reward Scheme. 

“This proposed HMRC scheme represents a transformative step towards ensuring stolen tax revenue is returned to the public purse. Rewarding those who come forward reflects the critical public service whistleblowers perform in exposing serious wrongdoing. As a claimant-only firm, we act solely for the individuals speaking up, never for the corporations being investigated.” 

Individuals considering making disclosures under the new scheme can contact Leigh Day for confidential advice.