HMRC is paying people to 'snitch' on tax dodgers – but it 'could be lucrative'

A lawyer has revealed that is now offering cash rewards to those who "snitch" on dodgers - adding that it could prove potentially lucrative for your bank balance.

Belle, who shares legal advice on , explained that the "pay-outs can be massive" in her video. "In March this year, the government officially announced a new whistle-blower reward scheme and that's going to help crack down on serious tax and evasion," she detailed.

Noting the change, Belle said that in 2023, HMRC paid out £1 million in rewards - although at the time it was "completely discretionary with no set rules". That system's now been given the boot, as she elaborated: "HMRC is building a structured percentage-based reward scheme - like the one used in America and Canada.

READ MORE:

READ MORE:

"That means if your tip leads to tax being recovered, you could get a cut, which could be up to 25%."

And, according to Belle, HMRC's got its sights on reeling in "target big corporations and wealthy individuals offshore", as well as "dodgy avoidance" schemes so there's a tidy packet to be made. "The goal is to tackle serious non-compliance and whistle-blowers are now part of the plan," she stressed.

Closing her advice, Belle reminded anyone tempted to whistle-blow themselves should make sure they're not in violation of any contract or a confidentiality deal. "While whistle-blowing can sometimes protect you, make sure you follow the correct procedure at all times," she concluded.

Belle stressed the importance of correct procedures, announcing: "Even if you're doing the right thing, you need to do it the right way. Still, for the first time in the UK, there could be serious money on the table for exposing tax fraud."

When news of the scheme spread to TikTok, reactions were mixed. One user openly stated: "I pay my fair share of tax why is ok for tradesmen to dodge it.

"So often they only accept cash... I wonder why." A second chimed in, indicating they might take action, adding: "Hell, I'm going to start keeping them eyes open."

Meanwhile, a third bragged about their earnings from the system: "I've already made £400 reporting people on ." But not everyone was onboard with the idea, as some TikTokers claimed the incentive would harm poorer communities and breed distrust.

"They say it's designed to target the rich, but it's going to be aimed at us on the lower end," one wrote.

Another individual remarked: "So we are going to encourage snitching now... society going down hill to make elites more elite. Don't fall for it."

The sentiment was echoed by a third who questioned the scheme's targets: "Why don't they go after the real tax invaders instead of the average Joe trying to make a living?"

Whilst a fourth person claimed: "Disgusting. The USSR had similar initiatives. All it did was foster a dismal, untrustworthy culture, where everyone was constantly paranoid and averse to helping others."

Should individuals decide to partake in this scheme, the government provides a form and advises : "It helps if you share your name, location and contact details. HMRC can then contact you if they need more information.

"You do not have to give your personal details. Any information you do give will be kept private and confidential. Do not send supporting information.

"You can tell HMRC if you have any when you make your report. If you’ve given your contact details, they’ll ask for more information if they need it. For your own safety, you should not try to find out more or let anyone know you’re making a report."