HM Revenue and Customs launches a 'reward scheme'

A groundbreaking move is set to be unveiled by HM Revenue and Customs, launching a 'reward scheme' similar to those used in the US, which will encourage taxpayers to report family members who dodge tax.

HM Revenue and Customs is set to introduce a 'reward scheme' for taxpayers who report family members for dodging tax, in a move set to be announced by Treasury minister James Murray.

The initiative, which is similar to a scheme used in the US, will see informers compensated proportionally to the amount of unpaid tax recovered by authorities.

This follows criticism of the current system, which fails to incentivise whistle-blowers, leading to limited exposure of substantial fraud cases.

Currently, the system often attracts claims for small sums driven by personal grievances rather than serious infractions.

The new policy is expected to be a major crackdown on tax dodgers, with the government aiming to collect billions in unpaid taxes.

The move comes as Sir Geoffrey Clifton-Brown, chair of the Public Accounts Committee, warned that the funds recovered so far "could just be the tip of the iceberg".

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The Treasury minister said that the new policy is part of the government’s commitment to a fair system.

“Everyone in Britain should play by the rules. We have zero-tolerance for anyone who commits tax fraud or dodges their responsibilities. That is why we are pushing ahead with our new US-style ‘whistle-blower’ reward scheme, and our crackdown on anyone abusing company insolvency rules.

“By going further and faster in pursuing those who break the rules, we are making the system fairer for everyone else, and we are delivering the Prime Minister’s Plan for Change by creating a simple and modern tax system that promotes economic growth.”, reports BirminghamLive.

The change will inevitably lead to a huge increase in whistleblowing cases, and high-ticket cases blowing the whistle in large organisations. But it's evident that people in the US are victims of their own success. They are swamped with tip-offs.