- Insights
HMRC to introduce 'grass-up family members' tax reward scheme in UK
The prime minister has confirmed plans to abolish NHS England.
UK Prime Minister Keir Starmer has announced the abolition of NHS England, the independent administrative body responsible for operating the National Health Service (NHS). Its functions will be brought back under the direct management of the Department of Health and Social Care (DHSC).
Last week, Starmer stated that this move aims to eliminate duplication of work between the two organizations, freeing up more human and financial resources. This would allow healthcare staff to focus on patient care and direct more funding into frontline medical services, ultimately reducing NHS waiting lists.
NHS England was established in 2013 by former Conservative Health Secretary Andrew Lansley to grant the NHS greater independence and autonomy. As an “arm’s length body,” NHS England has been funded by taxpayers but has operated independently of direct government control. However, it is important to note that the abolition of NHS England does not mean the abolition of the NHS itself.
The NHS operates as a nationwide healthcare system but is also part of the UK’s devolved governance structure. As a result, the NHS in England, Scotland, Wales, and Northern Ireland is managed separately by their respective governments, each setting its own healthcare policies.
What happens next?
Health Secretary Wes Streeting has stated that NHS England will be reintegrated into the DHSC, with a new team overseeing the transition, which is expected to take around two years. During this process, the government will provide AI and digital support, aiming to save £100 million in costs.
The dissolution of NHS England is expected to directly result in the loss of approximately 9,000 jobs, though this figure has not yet been confirmed. Currently, NHS England employs around 15,300 staff, while the DHSC, which is responsible for shaping and implementing health and social care policy in England, has about 3,300 employees.
For taxpayers, as long as you pay National Insurance (NI), you will continue to access free NHS healthcare services, including medical consultations, hospital stays, and emergency treatment.
During the transition period, the merger of NHS England into the DHSC will not affect your access to these healthcare benefits.
>>Read More ….
HMRC to introduce ‘grass-up family members’ tax reward scheme in UK.
The UK tax authority (HMRC) is set to launch a groundbreaking initiative inspired by the “whistleblower reward programs” in the US and Canada—encouraging taxpayers to report family members involved in tax evasion. The government hopes this initiative will help recover billions of pounds lost due to tax fraud.
It is understood that the Chancellor of the Exchequer will soon announce the full details. Under the new policy, whistleblowers will receive a reward based on the amount of unpaid taxes recovered.
Currently, HMRC grants discretionary rewards to informants, depending on the amount of tax recovered and the time saved in investigations.
In the 2023-2024 financial year, HMRC paid nearly £978,256 in rewards to individuals who provided actionable intelligence—an increase from £508,500 the previous year and the highest amount in at least seven years. However, experts warn that if HMRC aims to close the £39.8 billion tax gap—the difference between theoretically owed taxes and actual tax revenue—it must significantly increase the rewards for whistleblowers.
The U.S. system is managed by the Internal Revenue Service (IRS) Whistleblower Office. Whistleblowers must provide credible information, including evidence that the accused has evaded taxes, penalties, or unpaid interest.
To qualify for a reward, the tax dispute must exceed $2 million, and the taxpayer involved must have had an annual income of at least $200,000 in at least one relevant tax year. Whistleblowers can receive between 15% and 30% of the recovered amount. If the information provided is already publicly available, the reward is reduced to a maximum of 10%. Rewards are issued after the case is resolved, and whistleblowers can remain anonymous.
>Read More ….
UK economy shrank unexpectedly in January
The UK economy unexpectedly contracted in January 2025, dealing a blow to the government ahead of the Spring Budget set to be released in March. In the previous Autumn Budget, the government had prioritized economic growth, but the continued weakness in economic data is expected to influence Chancellor Rachel Reeves’ decisions on tax and spending policies.
Data shows that the economy shrank by 0.1%, falling short of expectations, mainly due to a decline in the manufacturing sector. However, as monthly data can be volatile, the Office for National Statistics (ONS) estimated that over the three months leading up to January, the economy grew by 0.2%.
Nevertheless, “The UK’s overall economic performance remains sluggish,” said Mel Stride, Director of Economic Statistics at the ONS. Weakness was particularly evident in the construction sector and oil and gas extraction. However, the retail sector, especially food stores, saw positive growth, suggesting that people are opting to eat and drink at home more often rather than dining out.
Responding to the new data, Reeves attributed the economic slowdown to international factors rather than her own budget measures. She added: “This is why we are accelerating our efforts to safeguard our nation, reform public services, and kickstart economic growth to deliver our transformation plan.”
In the Spring Budget statement on March 26, Chancellor Reeves is expected to announce a series of cuts to benefits and other expenditures, aiming to demonstrate Labour’s commitment to achieving its self-imposed fiscal rules.
Following the Autumn Budget in October 2024, the government initially had a £9.9 billion fiscal buffer. However, due to stagnant growth, higher-than-expected inflation, and rising borrowing costs, this flexibility has now been eroded.
