Households across the UK could potentially earn millions by reporting neighbours and others suspected of tax evasion under a new HM Revenue and Customs (HMRC) crackdown. The tax authority, supported by the Labour Party government, plans to reward informants with up to 30% of the recovered taxes when they provide actionable tips.
Currently, HMRC offers discretionary awards based on factors like the amount of recovered tax and efficiency gains in investigations. However, the proposed scheme aims to increase these rewards significantly to encourage more people to report suspected tax fraud.
Anyone can report individuals or businesses they believe are underpaying taxes or engaging in fraudulent activities against HMRC. Acceptable reports include cases of undeclared income, false claims, or other tax-related fraud.
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HMRC advises that if there is an immediate danger or emergency, individuals should call 999 and ask for the police. For non-urgent reports, the taxman’s website provides an online form for submitting information. Reporters are encouraged to include their name, location, and contact details to assist HMRC in follow-up investigations, though providing these details is optional. All information is handled confidentially to protect informants.
Importantly, HMRC warns against attempting to collect additional information personally or disclosing the act of reporting to others, to ensure the safety and security of those submitting tips.
This enhanced incentive program reflects HMRC’s commitment to cracking down on tax evasion and encouraging public participation by offering substantial financial rewards for valuable leads.