Under investigation?

Tax avoidance or tax evasion?

Tax avoidance is legal, tax evasion is illegal. Understanding what constitutes tax avoidance or tax evasion is important.

Tax evasion

Tax evasion is where a UK taxpayer deliberately sets out to underpay tax. Tax evasion is illegal in the UK & a taxpayer can be prosecuted.

Tax avoidance

Tax avoidance is where a taxpayer uses a scheme or arrangement that results in a lower amount of tax being paid. Tax avoidance is legal.

Types of tax fraud

There are two main categories of fraud – extraction and non-extraction. HMRC can challenge taxpayers on a criminal or civil basis.

COP 9 cases of suspected tax fraud

Code of Practice 9 (COP 9) is used in selected cases where they suspect tax fraud. Find out how to get a reduced penalty.

COP 8 cases of other suspected tax fraud

COP 8 is often used where there may be an offshore connection or where a tax avoidance scheme has been used by a taxpayer.

Check on tax position

HMRC issue letters to taxpayers to check on their tax position. Find out how seeking advice can help you deal with these letters and achieve a better outcome.

The Contractual Disclosure Facility (CDF)

The Contractual Disclosure Facility is used to deal with larger sums arising from potential tax fraud. Understand what to do if HMRC offer you CDF.

Criminal investigations policy

HMRC deal with fraud using The Criminal Investigation Policy where a strong deterrent is needed or it is appropriate.

Civil investigations policy

Find out more about HMRC civil investigations policy, how to identify relevant facts and get a successful outcome.

Nudge letters

Nudge letters give a taxpayer a gentle nudge based on information received by HMRC. Find out how to deal with them.

Common Reporting Standard

CRS is where worldwide authorities exchange information about financial accounts. Find out how this information is used by HMRC.

Furlough fraud

Did you use the Coronavirus Job Retention Scheme and did you claim correctly or were mistakes made? HMRC are investigating £480k of suspected fraud.

Personal tax returns investigations

If you or your client has received a notification of an enquiry, it needs dealing with to avoid any penalties

How HMRC selects targets for investigation

Tax investigations are not undertaken on a whim, targets are selected carefully by HMRC. Find out if you could be a target for a tax investigation.