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:
- You admit to deliberate behaviour that led to tax loss.
- You agree to make a full, accurate disclosure.
- 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.