Code of Practice 8 enquiries involve complex matters, so it is crucial that you seek specialist advice from day one. Our tax dispute resolution team has decades of experience in dealing with HMRC in wide-ranging Code of Practice 8 enquiries. We’ll ensure your situation is represented fairly and the best possible outcome reached.
What is Code of Practice 8 (COP8)?
Where HMRC considers that a significant amount of tax has been lost due to tax avoidance, they use Code of Practice 8 to investigate the individual involved. These enquiries are conducted by HMRC’s Fraud Investigation Service (FIS), which is responsible for both civil and criminal investigations.
What is HMRC’s Fraud Investigation Service (FIS)?
HMRC’s Fraud Investigation Services (FIS) is a specialised unit responsible for tackling serious tax fraud and financial wrongdoings in the UK. Established to protect public finances, FIS investigates complex cases involving tax evasion, money laundering and organised financial crime.
The unit employs a range of civil and criminal enforcement powers. FIS also works collaboratively with law enforcement agencies, such as the National Crime Agency, to combat financial crime on a broader scale. By ensuring compliance and holding offenders accountable, FIS plays a crucial role in maintaining the integrity of the UK’s tax system.
To find out more about FIS, contact our specialist fraud investigations team.
Dealing with HMRC’s procedures
If HMRC are investigating you under Code of Practice 8, you’ll receive a letter explaining the reason for the enquiry, enclosing a copy of the Code of Practice 8. Knowing how to respond to the letter in the first instance is vital – and that’s something that we can make sure you get right.
What happens after receiving a COP8 enquiry?
In most cases, HMRC will invite you to a meeting. There is no statutory requirement for you to attend the meeting – it depends on what you want to achieve. There is no right or wrong action here as every case is different. We can advise you on the best course of action for your situation.
Meetings can often be constructive and may even result in the enquiry being dropped straightaway. We can attend the meeting with you, having first carefully reviewed recent events, tax planning and business interests.
It is understandable that sometimes you’ll feel intimidated or reluctant to discuss your affairs with HMRC for various reasons. That’s why we’re here: to take the strain so you don’t have to.
Potential outcomes
There is a danger that the Code of Practice 8 enquiry might uncover something that HMRC suspects could be deliberate or tax evasion. These enquiries often involve offshore assets or interests, such as trusts, companies and investments, and HMRC will want to check that the relevant taxes were correctly paid.
If HMRC starts to suspect the individual of deliberately understating or not declaring all their income or gains, it could elevate the matter to Code of Practice 9, suspected tax fraud or even instigate a criminal investigation with a view to prosecution. That’s why it is key that you seek professional advice to minimise the risks.
How we can help
Expert representation: Our tax dispute resolution team will ensure that your case is presented clearly and fairly to HMRC.
Strategy and negotiation: We will help navigate complex tax laws and negotiate with HMRC to minimise penalties.
If you’d like to talk to us about a Code of Practice 8 investigation, don’t hesitate to get in touch with team lead, John Hood.
