If you’ve received a letter from HMRC marked “Code of Practice 9”, you’re not alone—but you are in serious territory. COP9 refers to Code of Practice 9, a formal procedure of HMRC investigation process used when it suspects serious tax fraud. It is not used lightly. This blog by the Taxcom outlines your rights and HMRC’s expectations, including the opportunity to make a full disclosure under the Contractual Disclosure Facility (CDF).

What is the Purpose of COP 9?

The primary function of HMRC COP9 is to uncover and recover tax lost due to serious fraud, without immediately resorting to criminal prosecution. While this might sound like a reprieve, it’s conditional. HMRC offers a one-time opportunity for full and honest disclosure through the CDF. If you accept the terms and co-operate fully, HMRC will not prosecute.

But there’s a catch. If you mislead them or fail to disclose the full extent of wrongdoing, criminal prosecution becomes a real possibility.

 

Who Receives a COP9 Letter?

HMRC sends a COP9 letter only after an internal risk assessment flags significant irregularities. You might receive one if:

• HMRC suspects deliberate dishonesty in your tax affairs.

• There’s evidence of false returns, undeclared income, or falsified records.

• You’re linked to a scheme or network under investigation.

• You’ve ignored previous opportunities to correct discrepancies voluntarily.

The letter isn’t random. It’s a signal that HMRC already has reason to believe there’s more to your finances than reported.

What is the Contractual Disclosure Facility (CDF)?

The Contractual Disclosure Facility is central to COP9. It’s a written contract between you and HMRC. Here’s how it works:

1. You admit to deliberate behaviour that led to tax loss.

2. You agree to make a full, accurate disclosure.

3. HMRC agrees not to pursue criminal prosecution, provided the disclosure is complete and truthful.

The terms are clear: honesty in exchange for immunity. But this also means withholding or lying in your disclosure invalidates the agreement—and invites criminal charges.

Key Features of COP9

To understand what is COP 9, you must also understand its operational features:

• Time-Sensitive: You usually have 60 days to accept the offer and submit an outline disclosure.

• Detailed Reporting: This isn’t a casual summary. You’ll be expected to produce detailed financial and narrative reports.

• Legal Representation Recommended: The process is complex. Mistakes or omissions can be interpreted as further dishonesty.

Why is Legal Support Critical?

Trying to navigate COP9 on your own is risky. At The Taxcom, we’ve seen cases where individuals tried to manage without professional help and ended up facing prosecution because they misunderstood what was expected.

Qualified tax investigation specialists can:

• Accurately assess your legal position

• Prepare the disclosure in the correct format

• Ensure you don’t say more—or less—than you should

• Negotiate penalties and timelines with HMRC

Getting professional help can make the difference between a financial penalty and a criminal record.

How the COP9 Process Works

Once you’ve understood what is COP 9 and decided how to respond, it’s critical to know how the actual process unfolds. The COP9 process is structured, time-bound, and often stressful. But knowing what to expect can ease some of the pressure and help you make informed decisions from day one.

Step 1: Receiving the COP9 Letter

The process begins with a formal letter from HMRC’s Fraud Investigation Service (FIS). This letter includes:

• A copy of Code of Practice 9

• An invitation to use the Contractual Disclosure Facility

• Instructions on responding within a 60-day deadline

• A disclosure form to accept or reject the offer

It’s vital to act quickly but carefully. The countdown starts the day you receive the letter.

Step 2: Deciding Whether to Accept the CDF

You have two choices:

1. Accept the CDF – You admit deliberate behaviour and commit to a full disclosure. HMRC agrees not to pursue a criminal investigation.

2. Reject the CDF – You deny any deliberate wrongdoing. HMRC may launch a criminal investigation if they believe you’re being dishonest.

If you do nothing within 60 days, HMRC assumes you’ve rejected the offer. This is the worst possible outcome—you’re now exposed to full civil and possibly criminal investigation.

Step 3: Submitting the Outline Disclosure

If you accept the CDF, the next step is submitting an Outline Disclosure. This document summarises:

• The nature of the tax fraud

• The types of taxes involved (e.g. Income Tax, VAT, Corporation Tax)

• The years affected

• How the fraud was carried out

This is a critical point in the process. HMRC uses the outline to decide whether your case fits within the scope of COP9 or whether it should be escalated.

Step 4: Detailed Disclosure Report

Once HMRC accepts your outline, they will ask for a full Disclosure Report. This includes:

• A statement of facts

• A schedule of all tax irregularities

• Supporting documentation (bank records, accounting systems, emails)

• An explanation of how the fraud occurred

• A formal statement of truth, signed by you

This report must be truthful and complete. Any omissions can invalidate your agreement under the CDF and reopen the door to criminal charges.

Step 5: Negotiation and Settlement

HMRC will review your disclosure and may request further information. They’ll then:

• Calculate the amount of tax owed

• Assess penalties (ranging from 20% to 100% of the tax)

• Add statutory interest

There is often room for negotiation around the level of penalties and payment schedules—especially when you have experienced representation.

Step 6: Final Settlement

Once HMRC is satisfied, you’ll enter into a formal settlement. This usually includes:

• A contractual agreement to pay the tax, interest and penalties

• A non-prosecution agreement, provided you’ve fully cooperated

• Future compliance expectations

At this stage, your case is closed—but HMRC will keep a close eye on your future filings.

Timeline Summary

Stage	Timeframe
COP9 Letter Sent	Day 0
Respond with CDF Decision	Within 60 days
Outline Disclosure	Within the 60 days
Full Disclosure Report	Typically 3–6 months
HMRC Review and Questions	Ongoing
Final Settlement	6–18 months total

 

Can You Refuse to Cooperate?

Yes—but it’s highly inadvisable. Refusing to cooperate or submitting an incomplete disclosure often leads HMRC to:

• Withdraw the CDF protection

• Launch a criminal tax investigation

• Use powers to obtain third-party information (banks, suppliers, accountants)

• Prosecute under tax fraud and money laundering laws

Risks and Consequences of COP9 Investigations

Understanding what is COP 9 isn’t complete without a clear view of the risks involved. COP9 investigations are high-stakes. While they offer a path to avoid prosecution, they also carry significant financial, reputational, and legal consequences.

Whether you’re a business owner, self-employed professional, or an individual taxpayer, the risks can be life-altering if mismanaged.

Civil Penalties Under COP9

The most immediate consequence of a COP9 investigation is the financial penalty. These are based on the level of dishonesty and cooperation shown throughout the process.

HMRC Penalty Ranges (Deliberate Behaviour)

Behaviour Type	Minimum Penalty	Maximum Penalty
Deliberate but not concealed	20%	70%
Deliberate and concealed	30%	100%

Penalties are calculated in addition to the tax owed and interest. In cases of full cooperation, these can be reduced, but they still represent a serious financial burden.

Risk of Criminal Prosecution

One of the central reasons to accept the Contractual Disclosure Facility is to avoid criminal proceedings. However, this protection is only valid if:

• You fully disclose all deliberate behaviour

• You do not attempt to mislead or withhold information

• You comply with all HMRC requests and deadlines

Failure to meet these conditions gives HMRC grounds to terminate the CDF agreement and refer your case for criminal investigation.

If prosecuted, penalties can include:

• Unlimited fines

• Seizure of assets

• Disqualification as a director

• Imprisonment (up to 7 years)

Reputational Damage

For business owners and professionals, reputational harm can often be more damaging than financial penalties. HMRC does not currently publish names of COP9 subjects, but this could change. If details leak—whether through banks, professional networks, or legal proceedings—clients, partners, and suppliers may lose trust.

Professional regulators, including the FCA, ICAEW, and SRA, may also take disciplinary action if a regulated individual is found to have committed tax fraud.

Business Disruption

A COP9 investigation can severely impact operations:

• Cash flow problems due to unexpected liabilities

• Loss of staff morale if the issue becomes public

• Audit and compliance fatigue, diverting energy from growth

• Restricted access to finance, especially if lenders become aware

This is particularly true for companies dependent on public sector contracts or regulated industries where financial conduct is scrutinised.

Emotional and Mental Stress

This aspect is often overlooked, but it’s real. COP9 investigations can go on for over a year, placing long-term strain on your:

• Mental wellbeing

• Family relationships

• Professional reputation

• Career progression

We’ve supported many clients at The Taxcom who describe the process as “all-consuming.” Having expert support can ease the emotional burden and provide clarity when it’s hardest to think clearly.

Long-Term Impact

Even after settlement, the consequences may linger:

• HMRC may monitor your tax returns closely for several years.

• You may struggle to obtain mortgages, loans or investment if flagged in financial systems.

• If a business collapses due to the cost of settlement, directors can be personally liable in some cases.

The smart move is to mitigate early by fully cooperating, appointing the right professionals, and preparing for the financial hit.

Real Case Examples

While client details are always confidential, typical COP9 scenarios include:

• A restaurant owner who under-declared cash takings over 5 years

• A contractor using offshore income routes and failing to declare foreign assets

• A property developer misclassifying personal expenses as business deductions

• A digital entrepreneur failing to disclose significant crypto income

In each case, the individual or company faced significant tax liabilities—but those who cooperated early avoided prosecution and protected their long-term future.

How The Taxcom Can Help During a COP9 Investigation

Now that you understand what is COP 9, the risks, and how the process works, the next question is: who should guide you through it? The answer is simple—not your everyday accountant. This is where The Taxcom steps in.

Our team specialises in HMRC investigations, including Code of Practice 9 cases, and we know the stakes. Whether it’s preparing your disclosure, negotiating penalties, or simply ensuring you don’t say the wrong thing, we’re here to protect your future.

Why You Need Specialist Support

Most general tax advisors and accountants are not trained to handle HMRC fraud investigations. A COP9 case isn’t just a tax enquiry—it’s an allegation of deliberate and serious wrongdoing.

At The Taxcom, we’ve handled numerous COP9 cases and know how to:

• Quickly assess the severity of your case

• Identify what HMRC likely already knows

• Prepare an accurate and protective disclosure

• Minimise penalties and reputational damage

• Prevent escalation to criminal prosecution

Our involvement from the beginning can make the difference between a financial penalty and a criminal conviction.

Step-by-Step Support From The Taxcom

Here’s how we help you navigate the COP9 process safely and effectively:

1. Initial Case Review

We carry out a confidential assessment of your situation—often within 24 hours. We’ll review the COP9 letter, determine the risk level, and outline next steps.

2. Strategy and Risk Mitigation

We design a strategy that protects your legal position while meeting HMRC’s demands. This includes deciding whether to accept the CDF and planning the disclosure process.

3. Drafting the Outline Disclosure

We prepare the outline disclosure on your behalf, ensuring all key issues are flagged without overexposing you. Every word matters—we make sure it’s right.

4. Managing the Full Disclosure Report

Our forensic accounting and legal experts compile a full report that’s robust, honest, and aligned with HMRC’s requirements. We handle all correspondence and deadlines.

5. Representing You in Negotiations

We deal directly with HMRC on your behalf. Whether it’s questions, challenges, or settlement discussions, we protect your interests throughout.

6. Ongoing Support

Even after settlement, we remain available to support with any compliance monitoring or future queries from HMRC.

Frequently Asked Questions 

What is COP 9 and why did I receive a letter from HMRC?

What is COP 9? It’s HMRC’s formal investigation process used when they suspect serious tax fraud. You received a COP9 letter because HMRC believes you may have deliberately underpaid tax. The letter includes an offer to use the Contractual Disclosure Facility (CDF), giving you a chance to admit wrongdoing and avoid prosecution.

What is COP 9 used for?

What is COP 9 used for? It’s designed to recover lost tax revenue due to deliberate behaviour—not mistakes. HMRC uses COP9 when they believe criminal prosecution is possible, but they offer you one chance to cooperate through a civil process. It’s used across all tax types, including Income Tax, Corporation Tax, VAT, and offshore disclosures.

What happens if I ignore the COP9 letter?

Ignoring a COP9 letter is extremely risky. If you don’t respond within 60 days, HMRC may interpret this as a refusal to cooperate. They can then escalate your case into a criminal tax investigation. If you’re wondering what is COP 9’s consequence for inaction—it’s prosecution, seizure of assets, and public damage to your reputation.

What is the difference between COP 9 and other HMRC enquiries?

Asking what is COP 9 compared to other HMRC procedures is a fair question. COP9 is not a routine tax check—it’s a specialist fraud investigation. Unlike standard enquiries or compliance checks, COP9 assumes there has been deliberate tax evasion. It involves forensic scrutiny, large document requests, and personal interviews.

What is the Contractual Disclosure Facility (CDF) in COP 9?

When people ask what is COP 9, the Contractual Disclosure Facility is central to the answer. It’s a one-time contract HMRC offers under COP9: you admit to deliberate behaviour, make a full disclosure, and in return, HMRC agrees not to criminally prosecute. It’s an alternative to court, but comes with strict conditions.

What is COP 9’s impact on my penalties?

One of the most practical concerns with what is COP 9 is the financial penalty. If you accept the CDF and fully cooperate, HMRC will apply reduced penalties, often between 20% to 70% of the tax owed. Without cooperation, penalties can reach 100%—plus interest and reputational damage.

What if I didn’t commit tax fraud?

If you’re certain you didn’t act deliberately, you should consider carefully before accepting the CDF. Accepting implies guilt. However, the mere fact you’re asking what is COP 9 means HMRC thinks they have grounds. We recommend speaking to a specialist before declining the offer—refusing it can still lead to prosecution.

What should I do first if I receive a COP9 letter?

If you’re asking what is COP 9 and what to do next, the answer is clear: get expert advice immediately. Do not complete or send any documents to HMRC without speaking to a specialist. You only get one opportunity to use the CDF, and mistakes can be extremely costly.

What is COP 9’s protection limit?

Wondering what is COP 9’s guarantee? The CDF offer protects you from prosecution only if you provide a full, honest and complete disclosure. If HMRC discovers you’ve withheld information or lied, that protection is withdrawn. At that point, a criminal case is not only possible—it’s likely.

Can The Taxcom help me understand what is COP 9?

Yes. At The Taxcom, we specialise in helping clients understand what is COP 9 and respond correctly. We guide you through every stage—assessing your risk, drafting your disclosure, communicating with HMRC, and negotiating outcomes. With us, you’re not alone in facing HMRC.

 

Work With The Taxcom — Your COP9 Defence Team

At The Taxcom, we don’t deal in vague promises. We deal in results.

• We’ve helped business owners avoid criminal charges after years of undeclared income.
• We’ve defended clients with offshore accounts, crypto assets, and complex structures.
• We’ve brought COP9 cases to successful closure with minimal penalties.

We can do the same for you—so Contact us today to ensure a seamless process.