What does section 26 of the Commissioners for Revenue and Customs Act 2005 provide?

Section 26 gives HMRC a discretionary power to pay a reward to any person who provides a service connected with a function of the Commissioners or an officer of Revenue and Customs. The power is permissive, meaning HMRC is not obligated to pay but may do so where it considers it appropriate.

Who is eligible to receive a reward from HMRC under section 26 CRCA 2005?

There are no restrictions specified in the legislation as to who may receive a reward. Any person who provides a service relating to a function of HMRC or its officers may be eligible. The decision on whether to pay a reward and the amount rests entirely with the Commissioners at their discretion.

Is HMRC required to pay a reward when someone provides useful information?

No. The power under section 26 is permissive rather than mandatory. HMRC is not required to pay a reward in any particular case. The Commissioners have full discretion to decide whether a reward is appropriate, such as when a member of the public assists in detecting tax fraud or recovering unpaid taxes.

Can HMRC pay a reward to someone who reports a tax evasion scheme?

Yes. If a member of the public provides information about a tax evasion scheme and HMRC successfully investigates and recovers unpaid tax, the Commissioners may choose to pay a financial reward under section 26. The service relates directly to HMRC's function of collection and management of revenue.

Commissioners for Revenue and Customs Act 2005 section 26

Rewards

Section 26 gives HMRC the discretionary power to pay rewards to any person who provides a service connected with a function of the Commissioners or their officers.

HMRC has the authority to pay rewards to individuals for helpful services
The service must relate to a function of the Commissioners or an officer of Revenue and Customs
Payment of a reward is discretionary, not obligatory
There is no restriction on who may receive such a reward

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