HMRC's payments to whistleblowers reporting tax evasion have ballooned 63% in the past year to hit £473,000, according to analysis of the tax department's annual report by BDO.
The firm said the sharp rise in payments suggests more people are coming forward to make reports about those evading tax. The previous year figure was £290,250.
BDO partner in tax dispute and resolution Dominic Arnold said: "In the past HMRC has said that the majority of people coming forward to provide information do so without expectation of financial reward. However, many believe that a more formal and transparent US style system might incentivise a greater people to come forward and report tax evasion."
Many believe that a more formal and transparent US style system might incentivise a greater people to come forward and report tax evasion
BDO points out that in 2019 the US tax authorities over $120m (£90m) to whistleblowers, at an average of $664,000 (£500,000) per award, whilst collecting over $660m (£497m) of additional taxes.
Under a formal US whistleblower programme, awards of between 15% and 30% of the tax collected can be made.
HMRC does not report specifically on the additional taxes collected from whistleblower payments. In its reports, HMRC said a range of factors determine the exact amount whistleblowers are awarded, such as the tax recovered, how much estimated revenue loss was prevented and other benefits, such as time saved in working cases.