COP9 and the Contractual Disclosure Facility

What a COP9 Notice Means

COP9 is HMRC’s Code of Practice for cases of suspected serious tax fraud. If you have received this notice, HMRC believes you have deliberately evaded tax on a significant scale. The letter will reference the Contractual Disclosure Facility and offer you an opportunity to make a complete disclosure of all deliberate tax irregularities as an alternative to criminal prosecution.

This is not a compliance check. It is not a routine enquiry. It is qualitatively different from every other form of HMRC investigation. The amounts involved are typically substantial, the penalties are severe, and the consequences of mishandling the response can include criminal prosecution. The 60-day response window runs from the date of the letter.

The CDF Decision

The COP9 notice gives you 60 days to accept or reject the Contractual Disclosure Facility. This is one of the most consequential decisions in tax. Accepting means you commit to making a complete, accurate, and honest disclosure of all deliberate tax irregularities across all tax types and all years. Anything omitted from the disclosure — deliberately or through inadequate investigation — can result in HMRC withdrawing from the CDF and pursuing criminal proceedings.
Rejecting the CDF means HMRC continues its investigation using its full statutory powers and retains the option to refer the case for criminal prosecution. Rejection is sometimes the correct course — but rarely, and only where the specific facts support it. This decision must not be made without specialist advice from someone who has handled COP9 cases.

The Disclosure Process

Where the CDF is accepted, the disclosure must cover every deliberate tax irregularity across all taxes and all years. This requires a thorough investigation of the client’s affairs — income tax, CGT, corporation tax, VAT, and any other tax where irregularities exist. The disclosure is presented in a formal report to HMRC, quantifying the additional tax, interest, and penalties for each year and each tax.
The quality of the disclosure directly affects the penalty outcome. HMRC assesses three factors: telling (the extent and timing of the disclosure), helping (the degree of cooperation in quantifying the liability), and giving access (how readily records are provided). Maximum cooperation on all three factors produces the lowest penalties within the applicable range.

Penalties

CDF penalties for prompted deliberate behaviour range from 35 to 100 per cent of the additional tax. For deliberate and concealed behaviour, the range is 50 to 100 per cent. The actual penalty depends on the quality of the disclosure as assessed by HMRC against the telling, helping, and giving criteria. Maximum cooperation typically achieves a penalty at or near the lower end of the range. We ensure the disclosure meets HMRC’s requirements for the maximum penalty reduction available.

What We Do

We advise on whether to accept or reject the CDF based on the specific facts of your case. Where acceptance is the correct course, we manage the entire disclosure process. We investigate your affairs thoroughly across all taxes and all years. We prepare the disclosure report quantifying all additional tax, interest, and penalties. We negotiate the settlement with HMRC and agree a payment schedule where needed. We represent you throughout the process so you deal with us, not with HMRC directly.