Nicholas McLeman considers HM Treasury’s new incentive scheme to tackle tax evasion.
In March 2025, the UK Treasury unveiled a package of new initiatives, including a bold new whistleblower reward scheme aimed at tackling tax evasion and aggressive avoidance.
HM Treasury intend to offer financial incentives to individuals who provide actionable intelligence that leads to the collection of unpaid liabilities. It is envisaged that this scheme will tackle tax evasion and aggressive avoidance, departing from the UK’s historically opaque and underfunded approach to whistleblowing.
According to HMRC’s latest figures, the UK tax gap for 2022–23 is estimated to be £39.8 billion, representing 4.8% of total theoretical tax liabilities. While this marks a long-term reduction from 7.4% in 2005–06, HM Treasury remains concerned regarding the absolute value of the tax gap which has grown steadily – driven by rising tax liabilities and persistent non-compliance – and are seeking new tools in its enforcement arsenal.
The Treasury is not, however, starting from scratch, as they are openly taking inspiration from our allies across the Atlantic. Both the US and Canada have long operated structured, incentivised whistleblower programmes, and HMRC has been taking notes.
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