How to respond to an HMRC Code of Practice 9 (COP9) letter

If you’ve received a Code of Practice 9 (COP9) letter from HMRC, take a breath and don’t reply before reading this blog.

COP9 is not a routine enquiry, it’s the start of a formal process where HMRC suspects serious tax fraud and offers individuals the opportunity to make a disclosure under the Contractual Disclosure Facility (CDF).

Under COP9, you’ve been given a one-time opportunity to make a full disclosure and avoid criminal prosecution – but only if your disclosure is handled correctly.

That means getting specialist tax advice for a HMRC investigation as early as possible.

What is COP9 and the CDF?

Under COP9, HMRC offers you a stark choice:

• Accept COP9 – Admit deliberate behaviour and make a full disclosure of all tax irregularities under the CDF
• Reject COP9 – Deny deliberate behaviour and risk a criminal investigation and prosecution

This isn’t about correcting a minor bookkeeping error or a late return – HMRC issues COP9 only when it believes there’s evidence of deliberate understatement, concealment, or fraud.

Why specialist tax advice matters from the outset

The CDF process begins with a formal acceptance of the terms – and a written Outline Disclosure.

This document sets out, in your own words, the nature and extent of the wrongdoing.

If you fill this in incorrectly, you risk:

• Losing protection from prosecution
• Triggering broader, more intrusive investigations
• Being hit with maximum penalties

This is why specialist tax advice for HMRC investigations is absolutely critical.

Our senior staff at inTAX are all ex-HMRC investigators. We will:

• Review your tax position to identify which issues HMRC may have concerns about
• Help you to decide whether to accept or reject COP9
• Draft your Outline Disclosure with strategic and legal precision
• Identify any further exposures you may not have considered – such as offshore income, undeclared capital gains, or incorrect VAT treatment
• Manage all communications with HMRC to ensure your position is protected.

What not to do if you receive a COP9 letter

• Do not ignore it. You have 60 days to respond and, if you miss the deadline, HMRC may launch a criminal investigation.
• Do not try to handle it yourself. This is not the time for DIY tax defence.
• Do not assume it’s only about one year or issue – HMRC may have information relating to historic issues.
• Do not lie or conceal information. Any misrepresentations in your disclosure can void the immunity offer.

What happens after you accept the CDF?

If you accept the CDF offer, you commit to providing a full disclosure of all deliberate and non-deliberate tax irregularities.

HMRC will usually invite you to attend a COP9 opening meeting. These meeting are likely to cover all of your business history and financial affairs.

Your adviser will help you prepare for questions which may be asked and you will work with your adviser to produce a Disclosure Report, which may include:

• An explanation of the deliberate errors
• Calculations of the tax liabilities, interest and penalties
• Supporting documents and analysis

HMRC will review the Disclosure Report and try to reach a settlement. If the disclosure process has been handled correctly, the COP9 investigation will be settled on a civil basis.

inTax: When it’s time to get serious

We understand the stresses and emotions once you’ve received a COP9 letter.

At inTax, our team of former HMRC inspectors and specialist tax advisers work swiftly, discreetly and strategically to:

• Protect you from prosecution
• Minimise penalties and interest
• Draw a clear line under the past

If you’re facing an HMRC fraud investigation, do not leave anything to chance.

Get specialist tax advice for a HMRC investigation today – and take back control of the process.

Contact the team at inTax now for a confidential consultation.

You can get in touch with our friendly and experienced team on: 0203 675 8122 or email joe.mcdermott@intaxltd.com.

inTAX is a specialist tax disputes firm. We deal with disclosures, investigations, and tax enquiries of all descriptions, including COP9, fraud investigations, VAT fraud, tax avoidance, let property disclosures and tribunal appeals. However, we don’t just deal with the serious end of tax investigations; we are also happy to handle smaller enquiries, disputes and problems that can be equally as worrying for our clients