The HMRC also known as Her Majesty’s Revenues and Customs Department is responsible for keeping tabs on taxes and payments to be utilized for maintenance of public services in United Kingdom. Under the various tasks carried out by the HMRC, one includes the initiation of the Code of Practice 8 investigations. The Code of Practice 8 tax investigation or better known as the COP8 investigation is initiated in cases where the HMRC suspects tax evasions by way of participating in tax avoidance schemes. Several people are known to contact their tax advisors for the same in order to save up on their incomes through certain tax avoidance schemes. However it sometimes so happens that such schemes result in heavy tax losses for the UK government, following which the HMRC is forced to launch investigations.
The COP8 investigation is however not carried out like a criminal procedure unless the HMRC finds incriminating evidence against an individual. In such a case, the HMRC may be forced to issue a Code of Practice 9 investigation under the Contractual Disclosure Facility, giving the individual to come clean about his or her tax fraud acts. In all other cases of tax evasion, the HMRC initiates the Code of Practice 8 investigation following which the individual, or partnerships, limited liability partnerships (LLPs), companies and trusts can make an informed decision on whether or not they wish to cooperate with the HMRC.
Before deciding anything, it is advised that the person or entity in question, take the help or guidance of a tax advisor who would guide them through the processes from start to finish. Before the HMRC initiates the COP8, they are liable to informing you and your tax advisor of the same in writing. The HMRC may or may not provide you with the reasons for launching the investigation depending on the confidentiality clauses of the same. Churchill Tax Advisors are the leading tax advisory consultation firm in UK with a team of experienced solicitors who guide clients through any and all Code of Practice investigations.