HMRC COP8 and COP9 Investigations in 2026: What Directors Need to Know

Our Director of Risk, Disclosure and Criminal Exposure recently wrote a briefing for our clients regarding HMRC COP8 and COP9 investigations in 2026.

The Common Framework for Disclosure (CFD) introduced a more detailed disclosure structure to support penalty assessments. This includes eight categories of disclosure such as: Relied upon (COP1), Self‑discovered (COP2), and others listed in the full CFD guidance.

COP8 and COP9 investigations occur regularly during HMRC audits. It is important for directors to understand the financial, personal, and criminal risks that may arise.

Both investigations are carried out by HMRC’s Fraud Investigation Service (FIS) and not by routine compliance officers. An early response is usually required.

COP8 vs COP9: Why the Distinction Matters

COP8 is used when the tax amount involved is high and the taxpayer has made a deliberate and significant under‑declaration of tax liability due to complex arrangements. These may include offshore planning, share schemes, technical VAT matters, and corporation tax planning. COP8 is a civil procedure and not a fraud procedure.

COP9 is different. It is used when HMRC suspects deliberate tax evasion. In these cases, HMRC offers the Contractual Disclosure Facility (CDF), under which HMRC grants immunity from prosecution if the taxpayer provides a full and detailed disclosure of deliberate evasion. The taxpayer must also provide a broad outline of all misconduct, including any issues HMRC has already identified.

For directors, the difference is significant. COP8 is a high‑risk civil matter, while COP9 focuses directly on director conduct and, if mishandled, can escalate to a criminal investigation.

The First 30 to 60 Days: Critical Decisions

During COP8

Directors should not engage directly with HMRC by telephone, email, or other informal contact. All communication should be managed through a specialist adviser familiar with FIS procedures. 

Recommended actions include: 

• Securing and reviewing all relevant documentation 

• Identifying who designed or implemented any disputed arrangements 

• Avoiding explanations that may later be interpreted as deliberate behaviour 

During COP9

You typically have 60 days to accept or reject the CDF offer. Acceptance means admitting deliberate tax evasion for the matter in question and providing a broad outline of all misconduct. 

An incomplete or incorrect disclosure may remove immunity and increase the risk of criminal punishment. 

Avoiding Escalation and Managing Penalties

HMRC may convert a COP8 inquiry into a COP9 investigation if they suspect fraud. This can happen if explanations appear inconsistent, insufficient documentation is provided, or answers are unclear. 

Penalty categories include:

• Careless

• Deliberate

• Deliberate and concealed

Penalties can escalate sharply depending on behaviour classification.

Forensic analysis can assist by identifying assumptions in HMRC’s working papers, simplifying issues in contention and reducing the amount of tax in dispute.

Overlapping Risks: PAYE, VAT and Insolvency

COP8 and COP9 investigations often overlap with other areas. HMRC may also examine:

• PAYE determinations

• VAT assessments

• Director loan accounts

• Dividend extractions

• Personal Liability Notices

Investigations may involve allegations that funds have been taken from the business without tax being accounted for. HMRC often works alongside insolvency and enforcement teams.

Directors may face:

• Winding‑up petitions

• Security bond requests

• Personal liability in the event of insolvency

Tax debt, cash flow issues, banking relationships, and insolvency considerations all add to the pressure.

Why Early Specialist Advice Is Essential

COP8 and COP9 investigations aim to recover tax, interest, and penalties. Effective management usually requires:

• Forensic accounting review

• A controlled disclosure strategy

• Careful drafting of all communications

• Consideration of tribunal appeal routes

• Coordination with insolvency and restructuring specialists

Early involvement can prevent a civil matter from escalating into a contentious dispute or a criminal case.

Act Immediately if You Receive COP8 or COP9

These investigations are not routine enquiries.

If you receive a COP8 or COP9 letter:

• Seek specialist legal advice immediately

• A rapid and well‑managed response can reduce penalties

• Early action helps protect against errors or incorrect assumptions in HMRC’s evidence

If you have been contacted by HMRC regarding a COP8 or COP9 investigation and would like to discuss this further, please contact one of our advisers. All conversations are handled confidentially.

FAQs

Q1: What is the difference between COP8 and COP9?

COP8 concerns suspected significant underpayment without an initial fraud allegation. COP9 involves suspected deliberate tax fraud and is conducted under the Contractual Disclosure Facility.

Q2: Does COP9 mean I will be prosecuted?

Not necessarily. Acceptance of the Contractual Disclosure Facility and full disclosure may provide immunity from criminal prosecution.

Q3: Can COP8 become COP9?

Yes. If HMRC concludes that deliberate behaviour occurred, it may escalate the investigation.

Q4: Are directors personally at risk?

Yes. Personal Liability Notices, dividend extraction issues and insolvency consequences may arise alongside the tax investigation.