HMRC publishes guidance on Strengthened Reward Scheme for tax avoidance reporting
HMRC has published guidance detailing its Strengthened Reward Scheme for individuals reporting serious tax avoidance or evasion. The scheme offers financial rewards ranging from 15% to 30% of the tax collected—excluding penalties and interest—for cases where the information provided leads to the recovery of at least £1.5m in tax. The guidance clarifies that such large-scale avoidance or evasion typically involves major companies, wealthy individuals, or offshore schemes. Rewards are granted at HMRC's discretion and do not apply to certain categories, including civil servants who obtained the information during employment, taxpayers implicated in the evasion, or submissions made anonymously. The guidance outlines reporting procedures that require detailed information, such as descriptions of the activity, the reporter's relationship to the individual or business involved, the duration of the activity, and an estimate of the value involved. Investigations based on these reports may take several years to complete.