How do I know if HMRC is investigating me?

Will HMRC call you?

You will not be notified by HMRC when they start looking into your tax affairs. Once they have done this, if they decide to formally investigate you, you will then receive a letter from one of the specialist HMRC teams requiring information, asking you for more information, or telling you that they have started an investigation.

However, sometimes it starts ‘softly,’ such as a general office compliance audit asking for more information about your latest tax return, or requesting information regarding a property transaction, etc. – but it is not uncommon for this to then expand into an investigation.

HMRC Tax Investigation Procedure

If HMRC thinks that criminal activity has occurred, such as VAT fraud or serious or extensive tax evasion, then it may open a criminal investigation. You will not know anything about this until you are arrested or receive an HMRC investigation asking for you to attend a voluntary interview under caution.

But sometimes, even when serious and deliberate tax evasion is identified, HMRC may choose to offer or accept to deal with it on a civil basis by entering into a Contractual Disclosure facility (CDF) under Code of Practice 9 (also known as a COP9 investigation). This is a structured and specialised process which allows HMRC to recover all outstanding tax plus interest and penalties from a person as long as full disclosure is made. If this is achieved, then HMRC will guarantee that the person will not be prosecuted for the issues disclosed.

So if you know of an irregularity in your tax affairs and you do not know how to resolve it, or you are worried that you may be investigated or find yourself the subject of a tax investigation or prosecution, then it is vital that you receive expert advice as to how best to navigate your way out of trouble. It is strongly recommended that you consult a specialist tax lawyer as soon as possible.

Do You Require Tax Investigation Assistance?

If you would like to find out how we can assist to answer your concerns and resolve your tax investigation problems, we are very keen to provide an initial, no-obligation consultation by telephone or email (whichever we think will be the quickest and clearest for you) to confirm – if we can help you (we usually can), how we can do this, and to give you a costs estimate so that you can decide if you wish to proceed. Get in touch with us today.

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Mark Wilson

Written by Mark Wilson

With over 25 years of experience defending high profile financial crime and regulatory cases, Mark Wilson comes highly recommended from the Legal 500 and Chambers Directory. Mark is an expert at defending Financial Crime cases and those relating to Tax Investigations.

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