blog header image

Posted : 11 Nov 2020 at 13:05:11
Category: News

Share this article

HMRC reported a 63% increase in payments to whistleblowers for reporting tax evasion in the 2019/2020 tax year, paying £473,000 to informants during the period. 

In the previous tax year HMRC paid £290,250 to informants – around £182,000 less than in 2019/20. 

he figures were published in HMRC’s annual reports and accounts 2019 to 2020. According to auditor BDO, the increase in payments to whistleblowers suggest more people are snitching on those committing tax evasion. 

BDO partner in tax dispute and resolution Dominic Arnold said: “In the past HMRC has said that the majority of people coming forward to provide information do so without expectation of financial reward. However, many believe that a more formal and transparent US style system might incentivise a greater people to come forward and report tax evasion.”

 

HMRC does not report specifically on the additional taxes collected from whistleblower payments. In its reports, HMRC said a range of factors determine the exact amount whistleblowers are awarded, such as the tax recovered, how much estimated revenue loss was prevented and other benefits, such as time saved in working cases.

By contrast the US taxman in 2019 paid over $120million to whistleblowers, at an average of $664,000 per award, while collecting more than $660million of additional taxes. Under the US model, awards of between 15 per cent and 30 per cent of the tax collected can be made. 

SIMILAR NEWS

blog header image
NEWS
CONSTRUCTION GROWTH SLOWS AS COSTS “GO THROUGH THE ROOF”

The pace of construction growth slowed in August as buyers reported near record rises in input cost inflation.       The bellwether IHS Markit/CIPS UK Construction PMI Total Activ ...

blog header image
NEWS
SUBCONTRACTORS HIT OUT AT HMRC OVER SLOW VAT REPAYMENTS

Specialist contractors have hit out at HMRC over the time it takes to reclaim VAT payments following a controversial change in the tax regime earlier this year. The “domestic reverse charge&rd ...

blog header image
NEWS
LABOUR COSTS ‘BREAK RECORDS’ AS VACANCIES SOAR

Recruiters have reported “record-breaking” increases in labour costs as new data shows vacancies hitting fresh highs. Between May and July, there were 38,000 vacancies in the construction ...

blog header image
NEWS
TIMBER SHORTAGE DUE TO 'UNPRECEDENTED' POST-LOCKDOWN DEMAND

The price of timber has risen sharply with builders struggling to get supplies, as post-lockdown construction and DIY projects create huge demand. The Timber Trade Federation (TTF) said supplier ...

blog header image
NEWS
UK CONSTRUCTION FACES ‘PERFECT STORM’ AS SUPPLY SHORTAGES LOOM

UK construction is facing a “perfect storm” of growing skills and materials shortages as demand for building reaches record levels driven by home improvements, the housing market and new i ...

blog header image
NEWS
DEMAND FOR CONSTRUCTION WORKERS CLOSE TO 20 YEAR HIGH

The staff shortage in construction is continuing to bite, with 33,000 job vacancies for the period of April to June according to the latest figures from the Office for National Statistics. It is the s ...

business-directory Business Directory
smartbusinessdirectory Payroll Services Business Directory
truebusinessdirectory payroll-services Directory
payroll-services Directory