Civil investigation of fraud - the next step  

If you have received a letter from HMRC notifying you of a Civil Investigation of Fraud into your tax payments, contact us today

Her Majesty's Revenue and Customs (HMRC) does not undertake a Civil Investigation of Fraud lightly. If you have received a letter about such an investigation, it will be because HMRC believes that the amount of unpaid tax through fraud or evasion is at least £75,000. The process of investigating this potential underpayment is thorough and binding, which is why you must consider your next step carefully.

Read Code of Practice 9

The letter you have received from HMRC will include a copy of Code of Practice 9 (2005) - the latest guidelines to the Civil Investigation of Fraud process. It is vital that you sit down and read this document carefully before you do anything else. Written in easy-to-understand language, the Code of Practice sets out the process that will be undertaken during the investigation. It also makes clear the benefits of complying with the investigation and of making payments on account as soon as possible. There are examples of the types of questions you may be asked at a meeting arranged between you, the tax Inspectors and your adviser or accountant, and the Code of Practice clearly sets out your rights and the standards of treatment you can expect from HMRC Inspectors.

Appoint an adviser

Code of Practice 9 makes it clear that it would be helpful if you appointed an adviser, who has the knowledge and experience to act as an intermediary between you and HMRC Inspectors, and who can put together a detailed report on your behalf. Appointing the right adviser in these circumstances could save you time and money.

Don't destroy any paperwork

In order to help you make a full disclosure to HMRC about your tax affairs, you will need to keep all relevant documentation that relates both to your personal and your business finances. You will also need to declare accounts and assets that are held in your spouse or partner's name and in your children's names. This applies to both paper and computer records and is vital to ensure that you comply fully with HMRC requirements.

Stop any activity

If you have been involved in fraudulent or evasive activity relating to your tax responsibilities, you must stop it now. You will be required to declare that you are not currently engaged in any such activity and HMRC has the means to check this via third parties if they deem it necessary.

The most important thing to do now is to call an expert who can help you approach your Civil Investigation of Fraud case in a professional manner. At Gilbert Tax, we have handled many cases like yours and we can provide valuable help and advice throughout the whole process.

If you have received notice from HMRC of a tax investigation or Civil Investigation of Fraud proceedings, call us for help and advice today. All enquiries are strictly confidential, so phone 0800 734 3333 or e-mail scott.gilbert@gilberttax.co.uk now

For more information about the different types of tax investigation cases we deal with on a regular basis please click here.

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