HMRC says 10% rise in UK tax evasion reports is due to whistleblowers

HMRC, the British government’s tax authority, has reported a 10% rise YoY in evasion probes – and says the increase is due to a surge in whistleblowers.

Today’s figures, released by UHY Hacker Young, reveal 73,000 reports arising from whistleblowing, representing a 10% rise on the numbers for 2018-19.
UHY Hacker Young, an accountancy firm, attributed the rise to a greater tendency for the public to view tax evasion as unacceptable behaviour.

It appears that more people than ever are choosing to report a neighbour, employer or business partner for tax evasion.”
Sean Glancy, a partner at UHY Hacker Young, said: “It appears that more people than ever are choosing to report a neighbour, employer or business partner for tax evasion.”

“The financial pressure some people have been under may have affected whether they report someone they know.”

He added: “HMRC has spent billions of pounds already this year in their efforts to combat the worst of the coronavirus pandemic. They are therefore likely to be even more keen than usual to pursue tax evaders and fraudsters, potentially making whistle-blowing routes even more obvious and accessible in order to help them do so.”

Glancy described whistleblowers as “a vital source” of information.

HMRC’s spokesman supported this view: “We value the information we receive from the public and business community.”

“Clamping down on those who try to cheat the system through evading taxes and overclaiming benefits is a key priority for HMRC and we are committed to ensuring the tax system operates fairly and efficiently.”

HMRC has an ongoing investigation targeting some 250 HNWIs around the world suspected of tax avoidance.