understanding HMRC opening letter

When you receive a letter from HMRC, it can be extremely worrying and confusing.  however there are some clues to determine what the letter means.

The first is who the letter is from.  if at the top right hand corner you see the words Civil Investigation of Fraud Offices or Special Investigations - take a deep breath, it's serious, and then call us on the number below.

Tel: 020 7724 8824

If the letter refers to Code of Practice 8 cases, then HMRC suspect some form of complicated tax avoidance. there may be international or trust issues which the HMRC considers have not been correctly dealt with in returns submitted.  you will often have been involved in a tax scheme or complex tax planning.

If the letter refers to Code of Practice 9 then HMRC suspect serious fraud and their investigations are dealt with via the CIF or SI offices.

This procedure is extremely formal and starts with a long interview with the tax payer. however if you co-operate fully there is still no risk of prosecution.

The investigation progresses with the submission of a formal report and finally, providing an undertaking that a full disclosure has been supplied.