COP9 Procedure

COP9 Procedure

COP9 disclosures provide a route for individuals who have committed fraud to negotiate with HMRC. The essential bargain is straightforward: confess all in exchange for avoiding prosecution.

How It Works

Under the COP9 process, the individual makes a full and complete disclosure of all fraudulent activity to HMRC. In return, HMRC agrees not to pursue criminal prosecution, provided the disclosure is honest and comprehensive.

Common Misconceptions

A widespread misconception is that an individual must be able to repay all the tax owed before applying for COP9. This is not the case. Individuals with no funds can still apply for the process. The key requirement is the willingness to make a full disclosure, not the ability to settle the debt immediately.

HMRC’s Current Approach

HMRC currently prosecutes fewer individuals than it has in the past, largely due to resource constraints. This makes the COP9 route a realistic option for many people. Applying voluntarily — rather than waiting for HMRC to initiate proceedings — substantially reduces the penalties that will be applied.

The One Condition

The only condition for COP9 is that the individual must disclose all fraud. A partial or selective disclosure will not be accepted. HMRC conducts thorough investigations that can span years, examining financial records, bank accounts, and other sources of information in meticulous detail.

The Risk of Concealment

Concealing additional fraud during the COP9 process carries a serious risk. If HMRC discovers that the disclosure was incomplete, the protection from prosecution falls away, and the individual may face criminal charges. Full and frank disclosure from the outset is essential.