HMRC has been paying people for giving them leads to tax dodgers.
Roughly 265 people each day are providing the authorities with information about people they suspect could be avoiding tax, such as former partners and bosses as well as colleagues and neighbours.
Last year a record £402,160 was paid to people who reported others via the taxman’s hotline, as part of a reward incentive scheme offered by HMRC. This is an increase of 30% more cash hand-outs in three years.
The hotline for tax informants was set up in April 2006, highlighted with a £1 million television and press campaign that showed a worker boasting how he “gets away” without paying tax.
A reward of between £50 and £1,000 can be had if HMRC gets a positive lead.
Last year, there were no fewer than 97,036 individuals in the UK willing to give tip-offs to HMRC. But while each call is said to be investigated, only some are believed to have received money.
“The payment of rewards is at the discretion of HMRC,” an HMRC spokesman said. “The awards are based on what is achieved as a direct result of the information provided and a range of factors determine the amount.
“The factors include the tax recovered, the estimate of the loss of revenue prevented and other measureable benefits such as the time saved in working compliance cases.”
