Households could get millions in cash by snitching to the taxman on friends and neighbours under a new rewards scheme. It could see informants of tax fraud rewarded with up to 30% of the taxes recovered if they successfully tip off HMRC.
This incendiary scheme would be similar to a practice carried out in the US, where the whustleblower (grass)receives a percentage of the tax as a reward. Details of the scheme are set to be announced in the Budget on November 26.
Currently, HMRC only pays discretionary awards based on factors such as the amount of tax recovered and the time saved in investigations.The new scheme would lead to higher rewards for those who snitch, as an incentive for more people to do it.
The government is trying to crack down on individuals and businesses not paying taxes, which costs it around £47billion a year. It comes after HMRC received a record amount of tip-offs on tax fraud last year.
In 2024-25, there were reportedly over 164,670 reports to its fraud hot line, according to analysts. That’s a lot of telling tales you know they say that snitches get stitches. In no way can this divisive activity contribute to a peaceful, harmonious society.
What has happened to Labour? Their desperate attempts to claw back money will divide communities.
