We were approached by a client from the midlands who was under a Code of Practice 8 (COP 8) tax investigation. The client had acquired several business and properties over the years and HMRC were questioning his ability to do so over a short of period of time given his modest of level of income. Before coming to us, the client’s Code of Practice 8 (COP 8) tax enquiry was being handled by his accountant who was unable to progress matters despite the enquiry being open for a few years. HMRC were asking for substantial amount of tax and the client was quite nervous.
Once the case was handed over to us, our code of practice 8 tax investigation specialists analysed the case and were able to find reasonable explanation with evidence to support the expansion of our client’s businesses and property portfolio. Our team of tax investigation consultants put these explanations and supporting evidence to HMRC’s Code of Practice 8 (COP 8) team who were able to accept it with minimal queries. The case was closed with very minimal tax to pay.
Tax enquiries under Code of Practice 8 (COP 8) should be handled by specialists who have the relevant knowledge and expertise like us. If HMRC are not satisfied with disclosures being made under Code of Practice 8 (COP 8), the client runs the risk of his case being referred to Code of Practice 9 (COP 9) team with higher risk of prosecution. It is therefore advisable to have your Code of Practice 8 (COP 8) tax investigation / tax enquiry dealt with by a specialist / consultant from the outset who will not only reduce the risk of prosecution but also the overall time and professional costs of handling your enquiry.
If you are being investigated by HMRC under Code of Practice 8 (COP 8), please feel free to contact us for a free and confidential consultation.