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Code of Practice 9 Investigation, Contractual Disclosure Facility and HMRC Fraud Defence

Code of Practice 9 Investigation Specialist

We provide specialist advice for individuals, directors and businesses who have received a Code of Practice 9 letter from HMRC’s Fraud Investigation Service. Whether you are within the sixty-day window for accepting or denying the Contractual Disclosure Facility, preparing the outline disclosure, working towards full disclosure or negotiating settlement after disclosure has been made, we help you understand exactly what HMRC is investigating, what your rights are and how to defend your position properly.

  • Specialist Code of Practice 9 accountants and CDF disclosure specialists
  • Help with the sixty-day decision, outline disclosure and full disclosure
  • Clear advice on accept vs deny, prosecution protection and settlement
  • Online, phone and in-person appointments across the UK
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Book a Consultation for COP9 Investigation Help

COP9 is the most serious civil investigation route — sixty days matter

When Code of Practice 9 Investigation Needs Specialist Advice

Most clients contact us within hours of receiving the COP9 booklet. The booklet is usually delivered by hand or by recorded post and is accompanied by a letter from HMRC’s Fraud Investigation Service stating that HMRC suspects deliberate tax fraud. The sixty-day clock for the Contractual Disclosure Facility decision starts from the date of the offer letter. The choice is not optional — accepting the CDF and making full disclosure provides immunity from criminal prosecution for the disclosed conduct. Denying the CDF leaves HMRC free to pursue criminal investigation if the evidence supports it.

These cases need careful handling because COP9 is the most serious civil procedure HMRC operates. The framework is built on the Civil Investigation of Fraud Code of Practice 9, Schedule 36 Finance Act 2008 information powers and the broader civil and criminal investigation framework. Every step matters — the CDF accept-or-deny decision, the outline disclosure within sixty days, the full disclosure report typically within six months, the statement of assets and liabilities, the certificate of full disclosure and the final settlement agreement. Errors at any stage can convert civil settlement into criminal prosecution.

  • Sixty-Day CDF Decision
  • Outline Disclosure Preparation
  • Full Disclosure Report Preparation
  • Statement of Assets and Liabilities
  • COP9 Settlement Negotiation

Common issues we deal with

Practical Help with Code of Practice 9 Investigations

We deal with COP9 investigations where careful preparation, accurate disclosure and structured negotiation make the difference between criminal prosecution and a contained civil settlement. The aim is to take the right CDF decision within sixty days, prepare the outline and full disclosure to FIS standards, present the case in the format the FIS team applies during COP9 reviews and reach a settlement that protects you from criminal exposure and minimises the financial impact.

01

Sixty-Day CDF Decision and Initial Strategy

We assess the COP9 and offer letter immediately, identify the underlying conduct under HMRC suspicion, advise on whether to accept or deny the CDF based on the evidence available, and prepare a structured plan covering the next sixty days from receipt.

02

Outline Disclosure Preparation

We prepare the outline disclosure within the sixty-day window, identifying the deliberate behaviour to be disclosed, providing initial figures of the tax-at-risk, confirming the scope of the disclosure and locking in the CDF acceptance and prosecution protection.

03

Full Disclosure Report Preparation

We prepare the full disclosure report typically within six months of CDF acceptance, calculating the deliberate tax for every relevant year (up to twenty years), preparing detailed schedules of income, gains and assets, evidencing source of funds and presenting the case in FIS format.

04

Statement of Assets and Liabilities

We prepare the statement of assets and liabilities covering all UK and overseas assets at the date of disclosure, with full evidence of how the assets were acquired and the source of funds, supporting the certificate of full disclosure.

05

Certificate of Full Disclosure

We prepare and verify the certificate of full disclosure, the most important single document in the COP9 process, in which the taxpayer formally certifies that the disclosure is complete and accurate and that no further deliberate conduct exists outside the disclosure.

06

Settlement Negotiation Through LSS Framework

We negotiate COP9 settlements through HMRC's Litigation and Settlement Strategy (LSS) framework, prepare the contract settlement document, agree penalty rates, calculate interest and arrange payment plans where lump-sum settlement is not viable.

07

Deny Pathway Defence

We defend cases where the CDF has been denied or where the underlying conduct does not amount to deliberate fraud, preparing the technical defence to HMRC's allegations, managing FIS information requests and protecting against escalation to criminal investigation.

08

Post-Settlement Compliance

We arrange post-settlement compliance to ensure the disclosed position does not recur, manage HMRC follow-up enquiries on related matters and defend any subsequent investigations into the same or related arrangements.

Specialist COP9 advice makes a difference

Why Work with a COP9 Accountant

A specialist Code of Practice 9 accountant does more than complete the disclosure forms. Good advice helps you understand exactly what conduct HMRC is investigating, what evidence HMRC already has from CRS, FATCA, CARF and Connect data, whether the underlying conduct meets the deliberate fraud test, whether to accept or deny the CDF, what the disclosure must cover and what realistic settlement outcomes look like.

For some clients, that means a clean CDF acceptance with focused disclosure of contained historic conduct, settling within twelve months at proportionate penalties. For others, it means a complex multi-year COP9 covering offshore assets, layered structures, multiple income sources and seven-figure tax-at-risk amounts, requiring detailed source-of-funds reconstruction, valuation evidence and structured settlement negotiation. In every case, the specialist’s role is to protect against criminal escalation while delivering the best possible civil settlement.

Reduce Risk

Identify exactly what HMRC suspects, prepare disclosure that protects against criminal escalation and avoid the disastrous consequences of incomplete or inaccurate certification.

Get Clear Guidance

Understand the CDF accept-vs-deny decision, the disclosure requirements, the timeline expectations and the realistic settlement outcomes given the underlying facts.

Deal with HMRC Properly

Approach FIS meetings, disclosure preparation, settlement negotiation and certificate of full disclosure with the structured discipline that COP9 specialist representation brings.

Targeted support for serious civil fraud tax cases

Who We Advise On Code of Practice 9 Matters

Advice in this area is needed by anyone who has received the COP9 letter from HMRC's Fraud Investigation Service. The buyer profile is broad — high net worth individuals, owner-managed business directors, professionals, property investors and others whose tax affairs have come under FIS scrutiny. In every case, the requirement is for COP9-specialist representation that combines tax technical depth with disclosure preparation experience.

High Net Worth Individuals

For HNW individuals facing COP9 investigations into offshore assets, foreign income, residence and domicile positions, complex investment structures and historic tax planning.

Owner-Managed Business Directors

For directors facing COP9 investigations into business income, director's loans, property transactions, profit extraction and historic arrangements that have come under HMRC suspicion.

Cash Business and Property Sector

For taxpayers facing COP9 investigations into cash income, undeclared business activity, property rental income, property development gains and other cash-intensive operations.

Disguised Remuneration & EBT

For taxpayers involved in employee benefit trust arrangements, EFRBS, contractor loan schemes and other disguised remuneration vehicles that have escalated from COP8 to COP9.

Flexible support across the UK

Speak Online, by Phone or In Person

COP9 investigations require substantial documentation but most correspondence and meetings can be conducted remotely with proper security, so geography rarely matters — what matters is having a specialist COP9 Accountant who understands the CDF process, the disclosure requirements, the FIS team’s expectations and the boundary between civil and criminal procedures in proper depth.

Get Tax Help Online

Speak to a specialist Code of Practice 9 accountant by Zoom and prepare your disclosure through secure document exchange.

Book an Appointment
Meet by Appointment

Where a face-to-face discussion is more suitable, in-person appointments can be arranged for review of complex cases.

Call us for a Meeting
Getting Started

Call, book online or send an enquiry urgently. The COP9 clock runs from the date of the offer & we will guide you to the next step same day.

Send us your inquiry

What clients say about our specialist tax service

What Clients Say About Our Code of Practice 9 Support

We support clients who want Code of Practice 9 investigations handled properly, urgently and with structured technical strategy. Clients value responsive support, careful preparation of disclosure documentation and a more disciplined way of dealing with FIS officers from the opening booklet through to settlement.

Book a Consultation for COP 9 Investigation Help

I received a COP9 letter from HMRC and had no idea how serious it was or what the Contractual Disclosure Facility really meant. Tax Accountant reviewed the position carefully, explained the risks clearly and helped me approach the matter in a much more controlled way.

Deepak K

Tax payer

Our case involved several tax years, incomplete records and allegations that went far beyond an ordinary enquiry. The advice was clear, practical and far more useful than trying to deal with the COP9 process on our own.

Micheal W

Director

Your Questions - Our Answers

We are here to help you with any questions you may have

What is Code of Practice 9, and what triggers it?

Code of Practice 9 is HMRC’s published procedure for civil investigations where HMRC suspects deliberate tax fraud. The procedure is operated by HMRC’s Fraud Investigation Service (FIS) and is the most serious civil tax procedure HMRC operates. It is also known as the Civil Investigation of Fraud (CIF) procedure.

COP9 is triggered when HMRC has evidence suggesting deliberate fraudulent conduct — not careless errors, not aggressive tax planning, but conduct that the taxpayer knew at the time was wrong. Common triggers include third-party information (whistleblowers, former business partners, divorce proceedings, professional adviser referrals), data from international information exchange (CRS, FATCA, CARF), data from HMRC’s Connect system showing material discrepancies, escalation from routine compliance checks where evidence of fraud has emerged, and intelligence from criminal investigation referrals to FIS.

The COP9 booklet is normally delivered by hand by an FIS officer or by recorded delivery post. The accompanying letter formally offers the Contractual Disclosure Facility and explains the sixty-day window for accepting or denying the CDF. The booklet itself sets out the procedural framework, the rights and obligations of both parties and the consequences of accepting or denying.

The procedure offers a contractual route: in exchange for the taxpayer making full and accurate disclosure of deliberate conduct, HMRC undertakes not to pursue criminal prosecution for the disclosed conduct. This is the central commercial feature of COP9 and the reason taxpayers with deliberate exposure should generally accept the CDF rather than deny.

Our COP9 investigation specialists assess the booklet and offer letter immediately, identify what HMRC likely already knows about the underlying conduct and prepare a structured strategy covering the sixty-day decision and beyond.

The Contractual Disclosure Facility (CDF) is the formal offer made within the COP9 booklet. It is a contractual arrangement between the taxpayer and HMRC — accept the offer and make full and accurate disclosure of deliberate conduct, and HMRC will not refer the disclosed conduct to the criminal investigation team. Deny the offer and HMRC remains free to pursue any of the three available routes — civil investigation under COP9, civil investigation under COP8 if fraud cannot be substantiated, or criminal investigation if the evidence supports it.

The CDF process has clear procedural stages. Stage 1 — Acceptance within sixty days of the offer letter, by completing and returning the formal acceptance form. Stage 2 — Outline Disclosure typically required within sixty days, providing initial information about the deliberate conduct, the tax-at-risk amounts and the scope of the disclosure. Stage 3 — Full Disclosure typically within six months of acceptance, providing the complete disclosure report with detailed schedules and evidence. Stage 4 — Settlement through HMRC’s Litigation and Settlement Strategy framework, with the contract settlement document setting the final terms.

The contract is bilateral. HMRC’s protection is conditional on the taxpayer making full and accurate disclosure. If the disclosure is materially incomplete or inaccurate, HMRC can withdraw from the CDF and pursue criminal investigation, even after settlement has been reached. This is why the certificate of full disclosure (where the taxpayer certifies the disclosure is complete) is the most important single document in the entire process.

The CDF only protects against prosecution for the disclosed conduct. Conduct that is not disclosed remains exposed to criminal investigation, and conduct discovered later that was not disclosed can convert the entire matter into criminal territory. The completeness of the disclosure is therefore decisive.

Our COP9 investigation specialists prepare CDF disclosures that meet the FIS completeness standard and protect against the most serious procedural risk in the framework.

If you turn down the Contractual Disclosure Facility (CDF) during a COP9 tax investigation, you lose the chance to settle things through a clear civil process for deliberate tax fraud. HMRC uses Code of Practice 9 when it thinks there are serious tax problems and offers protection from criminal charges if you fully and honestly admit to any deliberate actions. If you say no to the CDF, HMRC’s Fraud Investigation Service can keep looking into your case and might start a criminal investigation, depending on what evidence they find.
Saying no to the CDF does not mean you will be prosecuted immediately. However, you lose the protection that comes from making a full and voluntary admission. HMRC can use its own records, information from other sources, offshore reports, or your past tax returns to build a case. This means you no longer have a say in how your story is presented.
Before you decide to reject a COP9 offer, it’s important to look at how strong HMRC’s evidence is, which taxes are involved, and what risks come with how your actions are viewed. Our Specialist COP9 tax advisers can help you figure out if accepting the CDF is the right choice for you.
Under Code of Practice 9, taxpayers have 60 days to accept the Contractual Disclosure Facility and send in an Outline Disclosure. This Outline Disclosure should list all known deliberate tax issues and confirm that a full report will come later. You do not need exact tax figures yet, but you should clearly explain what happened, which taxes are involved, the years affected, and if offshore income, company structures, or trusts are part of the case.
HMRC expects the Outline Disclosure to be clear and honest. If the disclosure is vague or leaves things out, it can hurt your credibility and may lead to losing CDF protection. At this stage, you are setting out the scope, not final numbers, but you must show that you are making a full and genuine admission of deliberate tax fraud.
If your records are incomplete or complicated, the Outline Disclosure should explain what needs to be reconstructed and give a realistic timeline for the Full Disclosure Report. Leaving out facts, making incomplete admissions, or not mentioning offshore matters can greatly increase your risk in a COP9 tax investigation.
During a Code of Practice 9 investigation, HMRC looks at whether mistakes or omissions on tax returns were made on purpose or by accident. Deliberate actions usually mean someone chose to understate income, overstate expenses, hide offshore income, or misrepresent financial transactions. To prove intent, HMRC may check adviser emails, internal messages, banking activity, digital accounting records, and how transactions are set up.
How HMRC classifies behaviour—careless, deliberate, or deliberate and concealed—affects both the penalty amount and how far back they can review your taxes. In cases of deliberate tax fraud, HMRC can look back much further than the usual four years. If there is proof that a taxpayer knew about the issue, ignored warnings, or set up arrangements to hide it, HMRC may decide the behaviour was deliberate.
Relying on professional advice can sometimes help reduce the severity of HMRC’s classification, but only if the taxpayer gave the adviser all the correct information. If important details were left out, HMRC may still decide the behaviour was deliberate.
Since how behaviour is classified affects both penalties and the risk of further action, it is important to carry out a technical review early in a COP9 tax investigation. This helps ensure you can present a strong and consistent explanation.
Yes, HMRC can withdraw the Contractual Disclosure Facility under Code of Practice 9 if they decide the taxpayer has not given a full, accurate, and complete account of deliberate tax irregularities. This usually happens if important details are left out, assets are hidden, offshore accounts are not reported, or there are differences between financial records and what has been disclosed.
If the CDF is withdrawn, the protection from criminal prosecution that comes with voluntary disclosure may no longer apply. HMRC’s Fraud Investigation Service might then decide whether to continue with a civil resolution or to take a different investigative approach. This can greatly increase your risk.
That’s why the Full Disclosure Report should cover all income sources, companies, trusts, partnerships, and offshore structures in detail. Being open, keeping accurate records, and giving clear explanations are all crucial.
A COP9 tax investigation is more than just an accounting review. It is a formal civil fraud process with legal consequences. Having a professional involved helps make sure your admissions are correct, your calculations are solid, and nothing important is left out that could put your immunity at risk.
A Full Disclosure Report under Code of Practice 9 gives a complete overview of any deliberate tax irregularities. It usually explains how the issue happened, lists undeclared income or gains, recalculates tax owed for each year, includes interest calculations, and reviews any penalties.
If offshore income, company structures, or special arrangements are involved, the report should clearly show how money moved and name all related entities and accounts. Asset and liability statements help show everything is included. Supporting documents like bank statements, contracts, payroll records, trust deeds, and adviser letters are also needed.
The report ends with signed certificates stating that the disclosure is complete and accurate as far as the taxpayer knows. HMRC looks for clear, well-organized, and well-supported information.
If the disclosure is not well prepared, the COP9 investigation may take longer, HMRC may ask for more information, or it may be harder to reduce penalties. Having experienced COP9 accountants prepare the report helps meet HMRC’s standards and makes it easier to reach a settlement.
In a COP9 tax investigation, the penalties depend on how HMRC views your actions and how much you cooperate during the Contractual Disclosure Facility process. If you admit to deliberate tax fraud, the penalties are much higher than for careless errors. HMRC also makes a distinction between “deliberate” actions and “deliberate and concealed” conduct. If you have tried to hide the fraud, the penalties will be even higher.
Three main things affect whether your penalty can be reduced: how quickly you disclose the issue, how much you cooperate, and the quality of the information you provide. If you admit everything early and fully under the CDF, your penalty can be reduced significantly. But if you delay, leave out details, or give inconsistent answers, you may not get much reduction.
In cases of offshore deliberate tax fraud, higher penalty rates may apply. HMRC will also add statutory interest to any unpaid tax. When there are time limits, it is important to have a clear penalty negotiation strategy. Experienced COP9 accountants can help make sure your cooperation is well documented and that your arguments for reducing penalties are strong.
In a COP9 tax investigation, the penalties depend on how HMRC views your actions and how much you cooperate during the Contractual Disclosure Facility process. If you admit to deliberate tax fraud, the penalties are much higher than for careless errors. HMRC also makes a distinction between “deliberate” actions and “deliberate and concealed” conduct. If you have tried to hide the fraud, the penalties will be even higher.
Three main things affect whether your penalty can be reduced: how quickly you disclose the issue, how much you cooperate, and the quality of the information you provide. If you admit everything early and fully under the CDF, your penalty can be reduced significantly. But if you delay, leave out details, or give inconsistent answers, you may not get much reduction.
In cases of offshore deliberate tax fraud, higher penalty rates may apply. HMRC will also add statutory interest to any unpaid tax. When there are time limits, it is important to have a clear penalty negotiation strategy. Experienced COP9 accountants can help make sure your cooperation is well documented and that your arguments for reducing penalties are strong.
The 60-day deadline to accept the Contractual Disclosure Facility under Code of Practice 9 is strict. If you do not respond within this time and do not have an agreed extension, HMRC may see your offer as rejected. As HMRC explains in their guidance: “If you do not reply within 60 days HMRC will assume that you have chosen not to accept the offer of contract.” This means you lose access to the civil fraud resolution process and the protection from criminal prosecution for what you disclose. The guidance also says: “If you choose not to accept the offer of contract, you lose your opportunity to secure immunity from prosecution for the deliberate conduct you disclose.”
HMRC may give you more time if you have a real and proven reason. Some valid reasons for an extension include:
  • Serious illness affecting you or a close family member
  • Major difficulty in recovering old or missing financial records
  • Recent bereavement of an immediate family member
  • Unexpected hospitalisation
  • Other exceptional personal circumstances beyond your control
Extensions are not always given, so ask as soon as you can and clearly explain why you need more time.
If you miss the 60-day COP9 deadline and do not engage with HMRC, they may escalate the case. This could mean stronger information-gathering actions or other investigation methods by HMRC’s Fraud Investigation Service. For example, HMRC could carry out an unannounced visit to your business or contact your bank directly to obtain records. These actions make it even more important to respond in time.
It is important to get professional help as soon as you receive a COP9 letter to protect your position. In the first week, your adviser will look at the letter and your case, explain what is at risk, and help you avoid key mistakes in your response. During the first month, your adviser will collect the needed documents, help you draft the Outline Disclosure, and make sure you meet all deadlines. This clear plan helps you get the best result and gives you peace of mind throughout the process.
Yes, a COP9 tax investigation can include offshore income, overseas bank accounts, trusts, and complex company structures if HMRC thinks you have not disclosed everything. HMRC can get information about offshore matters through international agreements like the Common Reporting Standard and can ask for disclosures under Schedule 36 of the Finance Act 2008. These rules help HMRC find undeclared offshore income through automatic reporting and sharing data with other countries.
When using the Contractual Disclosure Facility, you need to include all deliberate issues, like foreign rental income, overseas dividends, offshore trusts, or hidden foreign accounts, in your disclosure. If you leave out any offshore matters, you could lose the protection the CDF offers.
If HMRC finds deliberate offshore tax fraud, you can face higher penalties and longer investigations. For example, Mr S hid £200,000 in an overseas account and received a 200% tax penalty, along with years of checks. HMRC will ask for a full explanation of your overseas finances, currency exchanges, and who actually owns the assets.
International tax reporting is complicated, and the penalties can be serious. It’s a good idea to work with COP9 accountants who know about offshore disclosure and civil fraud cases. They can help you stay compliant and protected under Code of Practice 9. To get ahead of any issues, book a confidential meeting with a COP9 specialist soon. Getting expert advice early can really improve your outcome.

Yes. In a Code of Practice 9 investigation, HMRC can look at more tax years than those listed at first if they find signs of deliberate behaviour in other periods. For deliberate tax fraud, HMRC has the power to go back much further than usual—up to 20 years (per Taxes Management Act 1970, section 36(1A)). Simply put, if HMRC suspects fraud, they can review up to 20 years of your past tax returns.

Where patterns of under-declaration, structured concealment, or repeated offshore omissions are identified, HMRC may require disclosure covering all relevant years affected by deliberate conduct. For example, if a taxpayer failed to declare overseas investment income from 2010 to 2015 by systematically omitting interest from offshore accounts, HMRC may expand its scope to cover those years. To put this in practical terms, if £5,000 of offshore interest went undeclared each year over six years, the unpaid tax and related penalties could quickly add up to around £12,000 or more. This shows how potential costs can escalate over multiple years. The Full Disclosure Report must therefore take a comprehensive approach rather than limiting review strictly to the years listed initially.

Giving a full disclosure for all relevant years helps you avoid unexpected penalties and gives you more control over the process. Rather than worrying about what HMRC might find later, you can have peace of mind and make sure you are protected under the CDF, which helps the investigation end more smoothly. Looking back at your records in advance also lowers the risk of future disputes or surprise bills, so you can feel more certain as your case is resolved.
Managing the scope carefully is important in COP9 tax investigations to make sure your disclosure is complete but also reasonable. As a first step, prepare an initial scoping memo within 30 days of getting the COP9 opening letter. To help make this process easier, use the checklist below as a guide for your memo: Identify all potentially relevant tax periods that could be within HMRC’s scope, Gather sources of evidence and documentation relating to the identified periods, Flag any high-risk items or patterns that require more detailed review.
Using this checklist will help you identify the right periods, focus on important areas, and set up a compliant response from the start.
Specialist representation in a COP9 tax investigation significantly influences both procedural control and financial outcome. Code of Practice 9 cases involve deliberate tax fraud allegations, strict contractual obligations under the CDF, behavioural classification, and high financial exposure.
Experienced COP9 accountants handle all communication with HMRC’s Fraud Investigation Service, keep track of deadlines, and make sure the Outline Disclosure is set out correctly. They also prepare the Full Disclosure Report with accurate figures and supporting documents. For example, in a recent case, a client who sent in a well-prepared Outline Disclosure early had their penalties reduced from 55 percent to 30 percent because everything was presented clearly and negotiations were timely. COP9 specialists also work to lower penalty percentages, explain any factors that could reduce penalties, and make sure the story of what happened is clear and legally sound.
Having a professional oversee the process lowers the chance of making mistakes, missing information, or saying things that could risk your protection from prosecution. This helps keep you safe from criminal charges. It also makes settlement talks go more smoothly by providing clear numbers and explanations, which can lead to a better and faster outcome.
In cases of deliberate tax fraud under Code of Practice 9, taking the right steps from the start can lower your risk, help keep the case civil instead of criminal, and speed up a fair settlement.