Do you get a reward for reporting tax evasion in the UK?

Asked by: Concepcion Hahn  |  Last update: August 26, 2026
Score: 4.8/5 (5 votes)

Yes, following the November 2025 Budget, the UK has introduced a strengthened HMRC whistleblower program that can pay rewards of 15% to 30% of the additional tax recovered. To qualify for a reward, the information must be original, credible, and lead to the recovery of at least £1.5 million in tax.

Do you get rewarded for reporting tax evasion in the UK?

You can be rewarded if you provide information to HMRC that helps to collect large amounts of unpaid tax (£1.5 million or more). You cannot receive a reward if: You obtained the information whilst working for the government. You are the taxpayer involved.

Do whistleblowers get paid in the UK?

Under the Scheme, HMRC would offer whistleblowers a reward of between 15% and 30% of the additional tax actually recovered (not just assessed) in cases where more than £1.5 million is recouped (excluding penalties and interest). Rewards will, however, ultimately be paid out at HMRC's discretion.

Is there a reward for reporting tax evasion?

Whistleblower claim for award

The office pays monetary awards to eligible individuals whose information is used by the IRS. The award amount generally is 15 to 30% of the proceeds collected and attributable to the whistleblower's information.

Can I get money for reporting someone for tax evasion?

If you have information about suspected tax fraud, evasion or tax law violation the IRS is authorized to administer, enforce or investigate, you may be eligible to submit a claim for a monetary award with the IRS Whistleblower Office.

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30 related questions found

How much is a whistleblower claim worth?

Under most whistleblower reward laws, a whistleblower can receive an award of up to 30% of the monetary sanctions collected in a successful enforcement action. The largest SEC whistleblower award to date is $279 million.

What is the tax informer's reward?

Amount of Reward to the Informer – The Informer's reward shall be equivalent to ten percent (10%) of the taxes and penalties (or compromise amount, in case of compromise settlement ) actually collected as a result of the Confidential Information, or One Million Pesos (P1,000,000.00) per case, whichever is lower, ...

Do you get compensated for being a whistleblower?

The simple answer is that, yes, successful whistleblowers are entitled to a financial reward under the False Claims Act. In general, whistleblowers receive a percentage of the government's ultimate recovery, and depending on the extent of fraud, the compensation for blowing the whistle can be substantial.

Do you get a reward for reporting?

There are several US whistleblower reward laws that allow whistleblowers to get paid significant monetary rewards for reporting fraud, financial misconduct, and other wrongdoings.

What proof do you need as a whistleblower?

Proving a whistleblower claim requires establishing you engaged in a protected activity (reporting wrongdoing) and faced an adverse action (like firing or demotion), then linking the two, often using a timeline showing close proximity between your report and the employer's action, alongside strong evidence like financial records, emails, policy violations, and witness statements that show the employer's knowledge and retaliatory intent, eventually overcoming the employer's defense that they would have acted the same way anyway.

How much does HMRC pay whistleblowers?

Under the new scheme, HMRC have the ability to pay informants an award of 15-30% of the additional tax collected. There is a minimum threshold of £1.5m of additional tax that needs to be collected before the reward scheme will apply.

How much compensation for whistleblowing?

Whistleblowers get paid a percentage of the money recovered by the government, typically 10% to 30%, depending on the agency (like the IRS, SEC, or CFTC) and program, with the amount reflecting the significance of their information and assistance. Some large payouts have reached hundreds of millions, while IRS rewards average over $1 million, but rewards can also be reduced or denied if the whistleblower was involved in the wrongdoing or sourced public info.

Can I be sacked for whistleblowing in the UK?

By law (the Public Interest Disclosure Act 1998), whistleblowers are protected from: unfair dismissal – if someone is dismissed for whistleblowing, it will be treated as an automatic unfair dismissal.

Will someone know if you report them to HMRC?

If you think a person or business is deliberately not paying enough tax, you can report this to HMRC . Any information you provide will be private and confidential and you can report it anonymously.

How serious is tax evasion in the UK?

The maximum penalty for income tax evasion in the UK is seven years in prison or an unlimited fine. Evasion of VAT – in the magistrate's court, the maximum sentence is 6 months in jail or a fine of up to £20,000. Crown Court cases can be a maximum of seven years in prison or an unlimited fine.

What is the 5 year rule for tax in the UK?

If you return to the UK within 5 years

You may have to pay tax on certain income or gains made while you were non-resident. This doesn't include wages or other employment income.

Is there a reward for turning in tax evaders?

IRS Whistleblower Payouts

The average IRS tax fraud reward over the last two years is $1.08 million per whistleblower. The IRS can pay 15% to 30% of the case recovery for mandatory awards, and up to 15% for discretionary awards. The IRS has averaged just over 20% paid to whistleblowers over the last 2 years.

What is the reward for whistleblowers in the UK?

The False Claims Act became successful when rewards for whistleblowers were guaranteed to be at least 15%. This precise issue was addressed most recently in the Anti Money Laundering Whistleblower Program, which was established in 2020 as a discretionary program and was updated in 2022 solely to make rewards mandatory.

What is the highest whistleblower payout?

Since the inception of the SEC Whistleblower Program, the SEC has awarded more than $2 billion to 444 individual whistleblowers. The largest SEC whistleblower awards to date are: $279 million SEC whistleblower award (May 5, 2023); $114 million SEC whistleblower award (October 22, 2020);

What is the maximum punishment for tax evasion?

Tax evasion in violation of Section 7201 of Title 26 of the United States Code is a serious criminal offense. The maximum punishment for a defendant convicted under 26 U.S.C. § 7201 is five years in federal prison, a $100,000 fine, or both.

What is the maximum percentage of reward that can be offered to informers?

If the Information leads to detection of duty evasion. maximum reward of 20% of the duty evaded plus 20% of the fine/penalty realised can be given as reward to the informers. There is also a provision for sanction of advance reward in suitable cases.

Are rewards for catching criminals taxable?

Yes, you're entitled to a cash reward for turning in illegal immigrants as longs as the crime tip you submit leads to an arrest and conviction. Do you have to pay taxes on reward money? Yes, cash rewards for wanted criminals are taxable. You are obliged to declare "treasure trove” or “found money” to the IRS.