Press statement: New HMRC whistleblowing rewards scheme

“We support changes that contribute to the fight against tax fraud – anything that improves the ability of regulators to take action against wrongdoing is in the public interest.  However, rewards are no substitute for a comprehensive whistleblowing framework.

There is no shortage of whistleblowers currently reporting concerns to HMRC (over 14,000 in 2022-23), despite the serious personal and professional risks they face. Few whistleblowers do so seeking or expecting a reward.

Transparency around the performance of the scheme is essential. HMRC should publish accessible guidance and real-world examples of how rewards are calculated and awarded, to ensure consistency and fairness.  They need to set out how HMRC will protect and support those who come forward, including those who do not receive payouts. The effectiveness of the scheme in improving action against tax fraud needs to be monitored.

Make no mistake, rewards may support better enforcement, but experience in the US and elsewhere shows that only a very tiny minority of whistleblowers are likely to receive anything at all.  A reward scheme needs to go hand in hand with improvements to the wider system that empowers and safeguards those who speak up.”