Have you received a Code of Practice 9 (COP9) letter from HMRC? Our award-winning Tax Investigations team can ease the burden by assuming responsibility for all communication with HMRC, guiding you through the process, and negotiating any appropriate settlement on your behalf.

Get help with HMRC COP9 and CDF today: +44 020 3666 0151

COP9 investigations are the most serious type of civil investigation undertaken by HMRC and are conducted by its elite Fraud Investigation Service (FIS). All HMRC FIS officers are specialist fraud-trained investigators and should not be under-estimated.

COP9 investigations are only opened where HMRC suspects a loss of any tax or duty through the deliberate, fraudulent activity of a taxpayer. For this reason, the initial letter from HMRC opens with “HMRC have information that gives us reason to suspect that you have committed tax fraud.”

When HMRC FIS issues a COP9 investigation, it provides you with a one-time offer, known as the Contractual Disclosure Facility (CDF), whereby you will receive immunity from criminal investigation and/or prosecution in return for:

• Admitting you have acted deliberately in failing to declare income, gains or duties; and

• Agreeing to fully disclose all omissions and irregularities that have arisen in the last 20 years.

By accepting HMRC’s CDF offer, you are also agreeing to pay a minimum penalty of 35% of the unpaid tax (A higher percentage applies if the liability involves offshore activities), in addition to the interest that has accrued over those 20 years.

Why use a COP9 specialist?

From the date of receipt of HMRC’s COP9 CDF offer, you have 60 days to accept or reject. This decision is vital to the outcome of the case and the financial impact on you.

Accepting the CDF offer is not mandatory. If you have not acted deliberately with any tax irregularities, the CDF offer should be rejected. Any rejection, however, needs to be skillfully handled given HMRC FIS suspects you have committed tax fraud.

Doing nothing is not an option as HMRC FIS will deem you to have rejected its CDF offer and will commence its investigation. You will be deemed uncooperative, the level of your penalties will be greatly increased and, perhaps more importantly, you will have lost all control.

Non-specialist tax advisers will often panic upon seeing the COP9 letter and may advise you to accept the CDF offer without significant consideration. By contrast, any adviser with specialist expertise will carefully review your circumstances and ensure you do not let the threat of prosecution force you to admit tax fraud if you simply made an honest mistake.

The distinction between making a mistake and taking deliberate action is not always straight forward. A specialist adviser will be able to establish how your behaviour should be viewed in light of the COP9 investigation and will be properly equipped to make representations to HMRC FIS if required.

The potential consequences of a rejection must be taken seriously, but so must the financial implications of accepting you have committed tax fraud. Seeking professional advice at the earliest opportunity to aid the decision of accepting or rejecting the CDF offer is, therefore, essential to ensure you make the right decision.

Why use Buzzacott?

Buzzacott’s award-winning Tax Investigations team are COP9 experts. Our team includes former HMRC FIS investigators, and our team leader, Mark Taylor, acts as a consultant for HMRC’s COP9 policymakers. Consequently, we have a unique understanding of HMRC’s approach to COP9 investigations and the tactics HMRC FIS investigators employ.

We will draw on this extensive experience and our technical knowledge to give you the best possible advice on how to protect yourself while also minimising your exposure to any unnecessary tax, interest and penalties. Once appointed, we will:

• Carry out a comprehensive review of your tax affairs, working with you and any existing advisers, to ensure we have a full understanding of the issues and risks you are facing.

• Upon the conclusion of our review, we will prepare a strategy to efficiently and cost-effectively bring your affairs up to date.

• We will present any disclosure to HMRC FIS and attend any meetings they require, ensuring you are treated fairly throughout the investigation.

• Aim to fast track your COP9 investigation to resolution and closure of all issues to your satisfaction at minimum cost and disruption to you.

• Where you do not have sufficient funds to settle your resulting liabilities, we will negotiate a manageable time to pay arrangement with HMRC, so that it does not unduly impact your life or your business affairs.

For further information and detailed guidance on COP9 investigations, read our COP9 frequently asked questions here.