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HMRC look for tax on their rewards to informants?

Is informing on taxpayers (to HMRC) now a form of taxable income, indeed is it annual income?

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https://www.accountancydaily.co/hmrc-paid-ps2m-tax-informants

£400,000 paid out a year to encourage informants

Probably worth it but I would love to know the decision making process used by HMRC to pay out these rewards

This process seems to be more likely to close a bit of the tax gap than any MTD process

And just so cheap in comparison with the MTD fiasco

 

The suggestion that the tax recovered is a factor indicates that it could be a bit like commission

 

Replies (10)

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By ireallyshouldknowthisbut
26th Nov 2021 17:09

Given HMRC are doing minimal work in this area, perhaps they should go the whole hog, and pay for private individuals to collect taxes. ie outsource the tax inspector. HMRC have outsourced pretty much everything else.

The easiest things to do would be to 'assist' local councils. I could come up with huge sums in Council Tax and business rates just by checking the planning permissions to the council tax bill classes and business advertising vs the rates list. Be a mad race to nail them before the next guy plucked the low hanging fruit.

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Replying to ireallyshouldknowthisbut:
paddle steamer
By DJKL
29th Nov 2021 10:24

That was the Roman Way. A sort of PFI years ahead of its time, accept bids from those willing to collect £X from Y province, anything they extract over X they get to keep. (Did give rise to some petitions to the Senate and general unrest in the province in question but at least kept the civil service headcount down)

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RLI
By lionofludesch
26th Nov 2021 17:49

Nobody likes a tout.

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By More unearned luck
26th Nov 2021 18:21

Brilliant for accountants! Grass-up clients to HMRC for reward. Then charge fat fees to the clients for representing them in the ensuing enquires. Except why should HMRC pay for information you are obliged to tell them anyway via an AML report?

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Replying to More unearned luck:
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By Paul Crowley
26th Nov 2021 18:28

Probably because AML gets ignored unless £Millions or terrorism involved.
I think they take big figure Bank reports seriously
But there has been specific criticism of accountants covering their backsides by reporting "trivial" matters
But there is no such thing as trivial in the legislation

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Replying to More unearned luck:
By SteveHa
26th Nov 2021 19:08

Don't grass up your clients. Instead, grass up someone else's clients.

Learn about the issue in the pub, no AML issues.

We should all start going out for pints together and wittering away about our dodgy clients to other practitioners.

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Replying to SteveHa:
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By I'msorryIhaven'taclue
26th Nov 2021 20:15

SteveHa wrote:

We should all start going out for pints together and wittering away about our dodgy clients to other practitioners.

Rather than staying in for pints together and wittering away about our dodgy clients to other practitioners?

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By sjmaccounting
28th Nov 2021 19:34

I recently undertook one of the "paid for" HMRC online surveys that were advertised on here. I gave my business bank account details for the£80 payment but was advised that they only needed my personal bank details as the payment from HMRC was a "thankyou/Gift" and not taxable!

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Replying to sjmaccounting:
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By Paul Crowley
28th Nov 2021 22:38

Brilliant
Same goes for all the tips I give out to drivers and servers
After all you were paid to do something and you did need to have certain skills
Think I need to keep a record of this for future

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By justsotax
29th Nov 2021 11:20

its a pity they don't use a system whereby they encourage taxpayers to use qualified professionals who act under the umbrella of associations which require an ethical approach to dealing with tax matters, through which unscrupulous individuals may get reported to the Revenue and they can then act upon.

Instead apparently MTD is the one button solution - makes you wonder why there will be a need for informants in the future.....

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