Will I get a prison sentence for tax irregularities?

Home → Tax Investigations → Tax Investigation FAQs → Will I get a prison sentence for tax irregularities?

In recent years there has been an increase in the amount of HMRC investigations which have been conducted on either a criminal or civil basis. If HMRC becomes aware that you have deliberately avoided paying tax, then there is always a chance that you will find yourself the subject of a criminal investigation. This can ultimately result in prosecution and a prison sentence. However, even with deliberate tax avoidance, there are circumstances where HMRC chooses to either, on its own volition or when a request is made, to it settle matters without the need for going to court.

This means that the underpayment of tax (deliberate or not) is often punished with a penalty and interest based on the amount of underpaid tax and the extent of the actions taken to avoid paying it. There are various different types of Disclosure Protocol (or Codes of Practice) which HMRC use when seeking a resolution on a civil basis, including one which provides an indemnity against prosecution if the correct criteria is met and full co-operation and disclosure is subsequently provided.

However, a criminal investigation is a real risk for anyone who has tax irregularities and finds themselves under the scrutiny of HMRC. There is potential for any tax investigation case to go to the courts, with a potential prison sentence awaiting at the end of the process.

In recent years, the number of tax evasion cases that have resulted in a prison sentence has increased, although the average jail sentence has decreased. This is an indication that HMRC is no longer restricting criminal prosecution to ‘celebrity’ cases and that regular earners are at risk of their investigation resulting in a prison sentence.

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.

If you would like to find out how we can assist to answer your concerns and resolve your 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.

We confirm that we will treat any information you give us as strictly confidential and purely for the purposes of responding to you. When you formally become a client, in addition to solicitors confidentiality, you will be also covered by Legal Professional Privilege (which only applies to solicitors and not accountants or tax advisers) which shields disclosure to third parties seeking information.

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.

Read more about Mark Wilson.

One of the Nation's Leading Law Firms

Specialists in legal advice and representation for businesses, professionals and individuals

Make an enquiry