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HMRC Tax Investigations

HMRC Tax Investigation Solicitors — COP8, COP9, Voluntary Disclosure, and Information Powers

HMRC tax investigations range from routine self-assessment enquiries to the most serious civil fraud investigations under Code of Practice 9 (COP9), where HMRC suspects deliberate conduct and offers the Contractual Disclosure Facility (CDF) as an alternative to criminal prosecution. Each level of investigation carries different obligations, different penalties, and different strategic options. A specialist tax investigation solicitor advises from the moment of first HMRC contact — protecting legal privilege, limiting disclosure to what is legally required, and negotiating the best possible settlement.

COP8 & COP9 fraud investigations Contractual Disclosure Facility (CDF) FA 2008 Sch 36 information powers Voluntary disclosure
⚠️ A COP9 letter is the most serious civil communication HMRC will send — do not respond without a solicitor. COP9 offers the Contractual Disclosure Facility: if you accept, you must submit an Outline Disclosure within 60 days admitting deliberate conduct. If you reject the offer and HMRC later proves fraud, HMRC will not be bound by CDF protections and may prosecute. If you accept but fail to make a complete Formal Disclosure, you lose all protection. The decision to accept or reject — and everything that follows — requires immediate specialist legal advice.

HMRC Tax Investigations — Key Situations

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COP8 — serious fraud investigation without CDF — HMRC opens a COP8 investigation where it suspects serious tax fraud involving complex arrangements but is not (yet) ready to offer the Contractual Disclosure Facility. COP8 typically involves tax avoidance schemes, offshore structures, and complex transactions. HMRC investigates through information notices and may refer to its criminal investigation team if the case warrants it. A solicitor manages the investigation, considers whether to make a voluntary disclosure, prepares the taxpayer's response, and negotiates a civil settlement to avoid criminal referral.
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COP9 — Contractual Disclosure Facility (CDF) — COP9 is HMRC's most serious civil investigation tool, used where HMRC suspects deliberate understatement of tax. HMRC offers CDF protections: in exchange for a complete and honest disclosure, HMRC agrees not to pursue a criminal prosecution. On accepting COP9, the taxpayer must submit an Outline Disclosure within 60 days confirming that deliberate conduct has occurred. A full Formal Disclosure must then be prepared, identifying and quantifying all undisclosed tax liabilities. A solicitor advises on acceptance or rejection, prepares both disclosures, engages forensic accountants, and negotiates the civil settlement.
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HMRC information powers — FA 2008 Schedule 36 — HMRC can require taxpayers (and third parties including banks, accountants, and employers) to produce documents and provide information under Finance Act 2008 Sch 36 information notices. Third-party notices require HMRC tribunal approval in most cases. Certain information notices can be appealed to the Tax Tribunal. A solicitor analyses each notice: identifying what is legally required, what is legally privileged (and therefore exempt), what is disproportionate, and whether an appeal against the notice is appropriate — minimising the information HMRC receives.
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Dawn raids and criminal investigation — where HMRC suspects serious tax fraud or money laundering (Proceeds of Crime Act 2002), it may conduct a search and seizure operation with a magistrate's warrant. The right to legal advice on arrest is absolute under PACE 1984 s.58. A solicitor attends or is available by telephone at the search, advises the taxpayer in real time on what must and need not be produced, monitors what is being seized, and immediately begins advising on the investigation — including whether and how to engage with HMRC, and whether a voluntary disclosure or COP9 approach is appropriate.
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Voluntary disclosure — Worldwide Disclosure Facility — taxpayers with undisclosed liabilities from offshore assets, overseas income, or undisclosed UK income can make a voluntary disclosure before HMRC opens an investigation. HMRC's Worldwide Disclosure Facility (WDF — still open) and previous facilities allow taxpayers to come forward, calculate and pay the undisclosed tax, interest, and a reduced penalty, and avoid criminal prosecution. A solicitor advises on the most appropriate disclosure route, calculates the liability (including interest and the applicable penalty), and manages the submission — achieving the lowest possible penalty and protecting the taxpayer from prosecution.
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Formal Disclosure — preparing the complete picture — after accepting COP9 or making a voluntary disclosure, the taxpayer prepares a Formal Disclosure: a comprehensive document identifying all undisclosed liabilities across all relevant years, with supporting calculations. A solicitor manages the entire process — obtaining business records and bank statements, engaging forensic accountants to reconstruct figures where records are incomplete, and preparing the Formal Disclosure document that HMRC will use to calculate the settlement. Incomplete or inaccurate Formal Disclosures carry severe consequences, including loss of CDF protection.

Frequently Asked Questions

What typically triggers an HMRC tax investigation?

HMRC selects returns for enquiry through a combination of risk profiling, data matching (with banks, Land Registry, Companies House, overseas tax authorities under the Common Reporting Standard), and random selection. Common triggers include: inconsistency between declared income and lifestyle or spending; large or unusual deductions; offshore assets; high-value property transactions; business activity in high-risk sectors; tip-offs; and HMRC's Connect database identifying undisclosed assets. Receiving an enquiry notice does not necessarily indicate HMRC suspects fraud — but any COP8 or COP9 letter indicates serious suspicion and requires immediate specialist advice.

What is the Contractual Disclosure Facility (CDF) and what does it offer?

The Contractual Disclosure Facility (CDF) is HMRC's offer within a COP9 investigation. HMRC agrees not to pursue a criminal prosecution in exchange for the taxpayer making a complete and honest disclosure of all deliberate conduct giving rise to additional tax. On accepting COP9, the taxpayer must: (1) submit an Outline Disclosure within 60 days confirming that deliberate conduct has occurred; (2) prepare a full Formal Disclosure; and (3) cooperate with HMRC's investigation. The CDF is only available where HMRC suspects deliberate conduct — it is not available to taxpayers who dispute that they have acted deliberately. A solicitor advises on whether to accept or reject the COP9 offer.

Can HMRC access my bank account or demand documents from my accountant?

Yes — HMRC can require third parties (including banks, building societies, employers, and accountants) to provide information and documents under FA 2008 Sch 36. A third-party information notice requires approval from the Tax Tribunal unless the third party consents. HMRC can also, in practice, receive information from overseas tax authorities under international exchange of information agreements (the Common Reporting Standard and FATCA). However, documents covered by legal professional privilege — held by a solicitor — are exempt from HMRC's information powers (Sch 36 para 23). A solicitor reviews each HMRC information request before any documents are provided.

What happens if I reject a COP9 offer?

Rejecting COP9 does not end the investigation — HMRC will continue investigating using its information powers. If HMRC subsequently proves deliberate conduct, it loses the obligation to offer CDF protection: it may refer the case to its criminal investigation unit for prosecution. Rejecting COP9 is appropriate only where the taxpayer genuinely denies deliberate conduct — in which case a solicitor advises on the basis for rejection and manages the investigation as a civil compliance matter. Rejecting COP9 to buy time, or where deliberate conduct has occurred, is extremely high risk.

Should I make a voluntary disclosure before HMRC contacts me?

Yes — a voluntary disclosure before HMRC opens an investigation produces significantly lower penalties and eliminates the risk of criminal prosecution. HMRC's penalty regime for unprompted disclosures (FA 2007 Sch 24 and FA 2008 Sch 41) provides substantially greater reductions than for prompted disclosures (disclosures made after HMRC has started investigating). For offshore matters, HMRC's Worldwide Disclosure Facility provides a structured route for voluntary disclosure. A solicitor advises on the correct disclosure route, calculates the liability including penalties and interest, and manages the process to achieve the best possible outcome before HMRC becomes involved.

How It Works

One clear request. A tax investigation solicitor advises before you say a word to HMRC.

No upfront cost. A specialist tax investigation solicitor reviews the HMRC communication, advises on your legal obligations, protects privileged material, and manages the investigation — from the initial response through to Formal Disclosure and civil settlement.

Submit Your Request
1

Tell us about the HMRC letter

Describe the HMRC communication — enquiry, COP8, COP9, information notice, or other — the tax involved, and any deadline for response.

2

Matched to a specialist

We connect you with a specialist tax investigation solicitor experienced in HMRC investigations at the appropriate level of seriousness.

3

Investigation managed

Your solicitor manages all HMRC communications under privilege, advises on disclosure obligations, and negotiates the civil settlement — protecting you from the worst outcomes.

HMRC Tax Investigations

An HMRC investigation is not the time to handle matters yourself. A specialist solicitor manages it under privilege.

From COP9 acceptance decisions and Outline Disclosures through to Formal Disclosures, information notice challenges, and voluntary disclosure submissions — a specialist tax investigation solicitor manages every aspect of your HMRC investigation, protecting your legal rights and limiting your financial and criminal exposure.

Submit Your Request

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