Chancellor says ‘compensation’ for people who inform on tax-dodgers follows US model and could help close £1bn ‘tax gap’

Whistleblowers who inform HMRC about tax-dodging will get a cut of any money collected as a result, the government confirmed, as Rachel Reeves announced plans to raise an extra £1bn a year by closing the “tax gap”.

At her first budget in October, Reeves vowed to collect £6.5bn a year by cracking down on tax avoidance, which is legal, and tax evasion, which isn’t.

Spending £100m on 500 HMRC compliance stafff

£87m to improve HMRC’s debt collection

Prosecuting 20% more tax fraudsters

“Compensation” for whistleblowers.