Code of Practice 8 (COP8) is a set of rules governing how HMRC’s Fraud Investigation Service (FIS) will carry out civil investigations in complex cases where fraud is not suspected.
Historically COP8 enquiries have covered international subjects such as:
The typical COP8 case is difficult to define and usually involves matters that are complex, unusual, and/or involve significant sums of money.
Importantly, Code of Practice 8 is not used by HMRC where there is deliberate behaviour or tax fraud involved (the exception being a deceased perpetrator), although a COP8 could be escalated to a fraud investigation if HMRC’s findings begin to point towards this.
In more recent years, Code of Practice 8 has been used by HMRC in cases of tax avoidance often involving the investigation of tax schemes.
COP8 has also become the route for enquiries to be pursued following disclosures made under the Worldwide Disclosure Facility or Let Property Campaign where known issues have not been covered or supplementary questions need to be asked.
COP8 may also be requested by tax advisors who have cases which are away from the norm. For example, there might be situations which are inappropriate to disclose using normal routes, because they cut across different taxes and/or include elements where significant specialist input may be necessary.
Where letters are received under either COP8 or Code of Practice 9 it's recommended that specialist tax investigations advisors are consulted who can knowledgably assist clients and their agents (including accountants, lawyers, bankers or trustees etc).
While there might be no suspected fraud at the outset, the investigation should be treated seriously, as HMRC will usually believe a large amount of tax is at stake. The Fraud Investigation Service typically only opens a case where there is at least £500,000 of tax at risk.
Where practitioners come across situations they suspect involve deliberate behaviour they should consult with an investigations specialist. We can review the background and determine whether it is necessary to secure immunity from prosecution and apply for the protection of COP9 known as the Contractual Disclosure Facility.
Our Tax Resolutions specialists will support you throughout every stage of the disclosure process. We take a hands-on approach; some cases require a robust stance to be taken with HMRC, or sometimes a practical or discreet solution needs to be negotiated.
Our team is approachable and provides a personal and comprehensive service.
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