HMRC is sending envelopes full of 'life-changing' cash to employees who report bosses Informants will be paid up to 25% of the extra tax revenue raised as a result of their report, mirroring the incentive-based model used across the pond. HMRC is sending envelopes full of 'life-changing' cash to employees who report bosses HMRC is sending 'life-changing' cash rewards for employees who report tax dodging bosses. Informants will be paid up to 25% of the extra tax revenue raised as a result of their report, mirroring the incentive-based model used across the pond. Labour Party government's James Murray, Exchequer secretary to the Treasury, said: "Tax fraud is a crime — it rips off everyone else who plays by the rules. ‌ "As is the case in the US and Canada, our new approach will make sure people are incentivised to do the right thing and help the government to tackle tax avoidance head on. This new scheme helps deliver our plan for change, by supporting economic growth and putting more money in people’s pockets." READ MORE UK set for NEW hottest day of year with exact date next week announced At present, HMRC guarantees anonymity, and gives informers a modest cut on a ‘discretionary basis’ (paying out a total of £978,256 in the 2023/2024 tax year). Article continues below Andrew Park, tax investigations partner at Price Bailey, says the existing UK rewards are ‘minuscule’ when compared to those on offer in the US. "The thing with very large frauds is that the people in a position to report them tend to be in quite involved positions," he tells The Times. "Under the current system, HMRC gets swamped with vexatious, low-level reports, as it hasn’t provided enough of an incentive for the really major frauds. Some of these cases involve criminal gangs and people could be at physical risk if they blow the whistle." ‌ The payments made to whistleblowers in the UK are dwarfed by those in the US. In the 2022-23 fiscal year, the Internal Revenue Service in the US paid $89 million (£68 million) to 121 whistleblowers, equivalent to $735,537 (£568,000) each. Whistleblowers had provided information that allowed an additional $338 million (£261 million) in tax to be collected. Last year the IRS recovered $263 million from a single individual, and three informants split the $74 million (£57 million) reward equally. Article continues below The UK, by contrast, paid out £978,256 under its existing scheme for informants in the 2022-23 financial year. The government is said to be considering payments of between 10 per cent and 25 per cent of the extra tax collected.