What Is the Informants Scheme?

Why It Matters

The scheme turns private vigilance into a revenue‑generating tool, strengthening tax compliance and funding public services while deterring large‑scale evasion.

Key Takeaways

• HMRC rewards informants 15‑30% of recovered tax over £1.5m.
• Reporting uses standard GOV.UK fraud submission process online.
• Eligible tips include large firms, wealthy individuals, offshore schemes.
• Rewards are taxable and based on extra tax collected.
• Scheme helps fund public services by cracking tax evasion.

Summary

The Informants Scheme is HMRC’s initiative to incentivise whistle‑blowers to report large‑scale tax fraud or avoidance. If a tip concerns activity worth at least £1.5 million, the informant may receive a taxable reward equal to 15‑30 % of the extra tax recovered.

The scheme operates through the existing GOV.UK fraud‑reporting portal. Users simply search “report tax fraud,” follow the guided steps, and select the option that triggers the Informants Scheme. Eligible disclosures cover large corporations, high‑net‑worth individuals, complex avoidance structures, and offshore evasion schemes. Rewards are calculated on the additional tax collected and are subject to income tax.

HMRC emphasizes that the information can help crack down on hidden wealth, recover revenue, and support funding for public services. The video walks viewers through the “start now” and “accept and continue” prompts, underscoring the ease of submission and the importance of informing clients who may possess relevant intelligence.

By channeling private intelligence into the tax‑collection process, the scheme bolsters HMRC’s enforcement capabilities, deters sophisticated tax‑avoidance, and adds a new revenue stream for the Treasury, ultimately benefiting taxpayers and public‑service funding.

Original Description

In this video, you'll find out what HMRC's Informants Scheme is and how you can report serious tax fraud or avoidance. We'll explain how the scheme works, who it applies to, and how you could receive a taxable reward for reporting cases worth £1.5 million or more. You'll learn:

• what kind of tax fraud or avoidance you can report

• how to send information using GOV.UK

• when a report will trigger the Informants Scheme

• how your information helps recover lost tax and fund public services

If you work with wealthy individuals, large businesses, or clients who may have access to relevant information, make sure they know about this scheme.

0:00 Introduction

0:11 Reward criteria

0:25 How to report tax fraud or avoidance

0:57 Completing the reporting steps

1:07 Types of information you can report

1:20 Why your information matters

1:39 Who should be informed about the scheme

1:49 Further help and support

To subscribe and visit the HMRCgovuk YouTube home page:

https://www.youtube.com/channel/UCX03s8aGilPqvp992meZd6w?sub_confirmation=1

Visit GOV.UK

https://www.gov.uk/guidance/reporting-serious-tax-avoidance-or-evasion

https://www.gov.uk/report-tax-fraud

HMRC is the UK’s tax, payments and customs authority. We collect the money that pays for the UK’s public services and help families and individuals with targeted financial support.

You can use social media for help with general queries relating to any of HMRC’s products and services:

X: https://www.x.com/hmrc

Facebook: https://www.facebook.com/HMRC