Code of Practice 9 Investigations (or COP9) are very serious. HMRC only commence these when tax fraud is suspected. Our specialist tax team regularly defend these types of claims and can help you too. Contact us today for a free initial consultation with Partner and ex HMRC investigations expert Andy Lynch.
A COP9 investigation is HMRC’s most serious civil procedure for dealing with suspected deliberate tax understatement. It gives you the opportunity to make a full disclosure using the Contractual Disclosure Facility and to resolve matters without a criminal prosecution. Responding within the required time limits and providing accurate information is essential to protect your position.
At a glance
HMRC uses COP9 where it believes tax has been deliberately underpaid. The process gives the taxpayer a route to make a full disclosure and avoid criminal consequences. We help clients understand the allegation, meet the 60 day deadline, prepare accurate disclosures and negotiate a fair and commercial settlement.
What is a COP9 investigation?
COP9 is a specialist civil investigation procedure operated by HMRC’s Fraud Investigation Service. It is used where HMRC suspects that deliberate behaviour has led to a loss of tax. Unlike a standard enquiry or a COP8 investigation, COP9 involves an allegation of dishonest conduct, although this has not yet been proven.
At the start of the investigation, HMRC issues a COP9 letter and offers the Contractual Disclosure Facility. This sets out the taxpayer’s rights and responsibilities and marks the beginning of a structured and time critical process.
Summary: COP9 is a civil investigation into suspected deliberate behaviour and must be addressed urgently.
What does HMRC allege in a COP9 case?
The COP9 letter sets out HMRC’s belief that tax has been deliberately understated. HMRC will not usually provide full details of the suspected behaviour at this stage. Instead, it expects the taxpayer to set out the issues openly and honestly in their disclosure.
The allegation does not mean that HMRC has already concluded that deliberate behaviour has taken place. However, the taxpayer must take the allegation seriously, as the findings can affect penalties and future compliance.
Summary: HMRC alleges deliberate behaviour but expects the taxpayer to identify and disclose the underlying issues.
What is the Contractual Disclosure Facility?
The Contractual Disclosure Facility offers the taxpayer the opportunity to admit deliberate behaviour and provide a full and complete disclosure of all irregularities. In return, HMRC agrees not to pursue a criminal investigation in respect of the disclosed conduct.
Accepting the CDF is a contractual commitment. You agree to tell HMRC the full truth about all deliberate errors across all taxes. The agreement requires accuracy, completeness and cooperation throughout the entire process.
Summary: The CDF allows the taxpayer to resolve matters through a civil route in return for full disclosure.
What must you do within the 60 day COP9 deadline?
You must respond to the COP9 letter within 60 days. This is a strict deadline. You must decide whether to accept or reject the CDF. Accepting the CDF means admitting deliberate behaviour. Rejecting it means you dispute the allegation.
If you accept the CDF, you must also submit an outline disclosure within the same 60 day period. This document sets out the deliberate conduct, the periods affected and the taxes involved.
Missing the deadline can have serious consequences, including loss of the CDF protections.
Summary: A COP9 response must be submitted within 60 days and the decision to accept or reject the CDF must be taken carefully.
Should you accept the CDF and admit deliberate behaviour?
This decision depends on the facts. Accepting the CDF is appropriate where deliberate behaviour has taken place. It allows the taxpayer to resolve the matter civilly and can reduce penalties. However, accepting the CDF involves a formal admission and must not be made without understanding the full consequences.
If you reject the CDF, HMRC will continue to investigate and may take a more robust approach. It may still pursue penalties or, in serious cases, consider criminal investigation.
Specialist advice is essential before deciding how to respond.
Summary: Whether to accept the CDF depends on the facts and must be considered carefully with legal advice.
What is an outline disclosure and how should it be prepared?
The outline disclosure is a summary of all deliberate behaviour. It must be accurate, complete and supported by evidence. HMRC expects you to identify the taxes affected, the periods involved and the reasons behind the irregularities.
This document is one of the most important stages of the investigation. If it is incomplete or inaccurate, HMRC may lose confidence in the overall disclosure. This can affect penalties or lead to escalation.
Summary: The outline disclosure must provide an honest and clear summary of all relevant issues.
What happens after you submit your outline disclosure?
HMRC reviews the outline disclosure and then expects a full disclosure report. This is a detailed document setting out the history of the issues, the factual background, the tax impact and the evidence supporting the disclosure. HMRC may request interviews or further documents during this stage.
Once HMRC is satisfied that the disclosure is complete, it will calculate the tax due, interest and any penalties. Negotiation may be possible to reach a fair and commercially sensible settlement.
Summary: After reviewing your outline disclosure, HMRC moves to a detailed review and settlement stage.
Can a COP9 investigation become a criminal case?
COP9 is a civil process and is intended to resolve matters without criminal prosecution. HMRC will not pursue a criminal case for issues that are fully and honestly disclosed under the CDF. However, if the disclosure is incomplete, inaccurate or misleading, HMRC reserves the right to consider criminal options.
If you reject the CDF, HMRC may also consider whether a criminal investigation is appropriate depending on the facts and seriousness of the suspected behaviour.
Summary: COP9 protects against criminal prosecution for issues fully disclosed, but only if handled accurately.
What are the risks of not cooperating with COP9?
Failure to engage with the COP9 process can lead to higher penalties, increased assessments and the loss of the opportunity to resolve matters civilly. HMRC may conclude that further investigation is needed and consider whether the case should move to a criminal track.
HMRC views cooperation and truthful disclosure as key factors in determining the level of penalties and the overall outcome.
Summary: Not cooperating can lead to harsher financial consequences and possible escalation.
How long does a COP9 investigation take?
COP9 investigations are detailed and can take many months or years. The timeframe depends on the complexity of the matters disclosed, the volume of records involved and the speed of communication between the parties. The investigation continues until HMRC is satisfied that all issues have been dealt with and the tax position is correct.
Summary: COP9 investigations are lengthy and require sustained engagement.
What is the possible outcome of a COP9 investigation?
Outcomes vary depending on the facts. A successful disclosure can lead to a civil settlement covering tax, interest and penalties. Penalties are influenced by the quality and clarity of the disclosure. Once the matter is resolved, HMRC will close the investigation and confirm the corrected position.
Summary: Most COP9 investigations end in a civil settlement if the disclosure is complete and accurate.
How does FWJ help clients facing a COP9 investigation?
We support clients from the moment the COP9 letter is received. We help assess whether the CDF should be accepted, prepare detailed outline and full disclosures and manage discussions with HMRC. Our experience in tax disputes and civil fraud investigations means we can guide you through the process with clarity and a focus on achieving a fair and informed outcome.
Summary: FWJ provides clear, experienced guidance to manage COP9 investigations from start to finish.
Our specialist Code of Practice 9 Investigation team
No other firm in England has such a unique skill set as our tax team.
- Andy Lynch. Andy is an expert on a wide range of HMRC claims and before joining FWJ, he spent 18 years at HM Customs & Excise in their National Investigation Service. His experience is unrivalled in all types of HMRC claims including HMRC investigation defence, VAT claims, R&D tax credit defence, Account Freezing Orders, Tax Disclosure, Code of Practice 8 & 9 claims, winding up petition defence and much more.
- Stephen Downie. Stephen is a Partner and a former ACCA accountant who combines financial expertise with deep legal knowledge to deliver clear, commercial advice. He acts for directors, shareholders, insolvency practitioners and private clients in corporate governance disputes, director disqualification defence, and HMRC-related claims including tax avoidance schemes, PLNs, VAT and PAYE security demands. His focus is always on achieving the best outcome for clients as efficiently and cost-effectively as possible..
- Anita Sharma. Anita is a Senior Associate specialising in tax litigation and financial disputes with HMRC. She advises high-net-worth individuals and major commercial clients on appeals against HMRC decisions, complex tax assessments, and enforcement proceedings. Anita has secured interim relief following HMRC revocations to keep clients trading during appeals and is known for achieving practical, results-focused outcomes in high-value disputes.
- Khaliq Martin. Khaliq is a Senior Paralegal in the tax disputes team assisting on a broad range of HMRC investigation and defence matters. Khaliq draws on his international litigation background and public sector experience to help prepare detailed evidence and submissions for use in appeals and settlement negotiations, ensuring cases are presented clearly, carefully and effectively.
Our tax dispute team at FWJ are highly experienced in dealing with HMRC Investigations and COP9 investigations. We can take a lot of the stress and worry away in the process and also help save you money. If you have any such worries, contact our team today for a confidential no obligation chat.
Or contact Partner and ex HMRC investigation specialise Andy Lynch today for immediate help.
Andy Lynch at FWJ was literally a life saver for me. I ran in to some tax issues with HMRC and I suffer from mental health issues as well so I was a complex case. Andy took his time to professionally and accurately layout my case and assist me with finding a resolution. I researched a lot of tax advisers before making my decision and I am glad I did and relieved that I chose Andy and FWJ.
Chris Kitchen
FWJ did precisely what it set out to do. I am extremely grateful for its assistance.
A client who had received a Request for Security from HMRC for a sum that would have caused their company severe financial difficulties. We helped them to have the entire bill withdrawn
