In a landmark move, HM Revenue & Customs (HMRC) has announced plans to launch a formal whistleblower award program modelled on the highly successful U.S. Internal Revenue Service (IRS) Whistleblower Program. This initiative signals a dramatic shift in the United Kingdom’s approach to tax enforcement and whistleblower engagement, one that could significantly reshape how corporate and financial misconduct is uncovered and addressed.
From informal gratitude to formalized rewards
Historically, the UK has maintained a relatively cautious stance on financially rewarding whistleblowers. While HMRC has occasionally paid out discretionary sums for helpful tips, nearly £978,256 in the last year alone, there has never been a formalized, transparent, or incentivized structure for such payments. This ad hoc approach is now poised to change.
Under the proposed model, the HMRC would implement a structured system of financial rewards for individuals who provide credible and actionable information about tax fraud. The move mirrors the U.S. IRS Whistleblower Program, which offers monetary awards of 15% and 30% of the amount recovered in cases where the whistleblower’s tip leads to the collection of at least $2 million. Since its establishment in 2007, the IRS program has helped the agency recover over $6.9 billion and awarded more than $88.7 million to whistleblowers in fiscal year 2023 alone.
A cultural shift in compliance and accountability
This development marks a critical evolution in the UK’s regulatory landscape for compliance leaders, risk professionals and corporate governance teams. As companies grapple with increasing scrutiny over financial reporting and tax obligations, the potential for insider disclosures adds a new layer of risk – but also opportunity.
“Everyone in Britain should play by the rules. We have zero tolerance for anyone who commits tax fraud or dodges their responsibilities,” stated Treasury Minister James Murray. “That is why we are pushing ahead with our new U.S.-style ‘whistleblower’ reward scheme and our crackdown on anyone abusing company insolvency rules.”
The UK is signaling a more proactive and systematic approach to combating tax evasion by adopting a formalized reward structure. It also addresses long-standing criticisms that the government has failed to adequately incentivize or protect those who come forward with critical information.
Backed by experts and advocates
Whistleblower advocates and legal experts have applauded the announcement as a vital step toward levelling the playing field between tax authorities and those who engage in sophisticated financial misconduct.
Stephen M. Kohn, a leading whistleblower attorney and partner at Kohn, Kohn & Colapinto, called the UK’s move “the most significant breakthrough in tax accountability since UBS was forced to disclose thousands of U.S. taxpayer names in the Birkenfeld prosecution.” Kohn noted that the new UK scheme mirrors effective U.S. laws that allow whistleblowers worldwide to report banking misconduct confidentially and receive substantial financial rewards.
This is no small endorsement. The U.S. case against UBS, which resulted in a $780 million fine and the disclosure of thousands of American account holders, set a global precedent for cross-border tax enforcement and transparency. By modelling its program on this structure, the UK is stepping into a more assertive and globally aligned enforcement posture.
Institutional support for reform
Support for a UK whistleblower reward scheme has grown steadily in recent years. In December, the Royal United Services Institute (RUSI), a prominent UK think tank, released a report urging the government to establish a whistleblower award program. The report highlighted the success of U.S. models and called for the UK to move past its “long-held antipathy” toward rewarding whistleblowers, suggesting that such a program could play a “pivotal role” in curbing financial and white-collar crime.
Nick Ephgrave, Director of the Serious Fraud Office (SFO), echoed this sentiment earlier this year. “I think we should pay whistleblowers,” he said in February, emphasizing the critical role that insider information plays in uncovering complex fraud schemes that would otherwise remain hidden.
Implications for the GRC community
For governance, risk, and compliance (GRC) professionals, this policy shift has far-reaching implications. Organizations operating in the UK must reevaluate their internal reporting systems, whistleblower protections and compliance programs to account for a potentially higher likelihood of internal disclosures. Moreover, it may incentivize companies to proactively enhance their tax compliance frameworks, recognizing that the risk of exposure is increasing.
This move also reinforces a growing global consensus that whistleblowers are not merely sources of risk but essential partners in upholding integrity, transparency and accountability in both the public and private sectors.
As the UK finalizes its new whistleblower reward program details, one thing is clear: the era of informal gratitude is over. In its place is a bold, structured approach that recognizes the value and necessity of rewarding those who help uphold the rule of law.
Speaking of whistleblowing…
On June 5, 2025, NAVEX will host its annual Regional Whistleblowing & Incident Management Benchmark webinar and release the full benchmark report. This valuable resource breaks down whistleblowing trends for all key metrics by global region.
Join Carrie Penman and Jan Stappers as they explore whistleblowing trends in North America, Europe, Asia Pacific and South America alongside Andy Noble, head of whistleblowing NatWest Group.
