Code of Practice 8 (COP8): Tax Expert Witness Support UK

COP8 (Code of Practice 8) is HMRC's civil investigation of fraud procedure, used where HMRC suspects serious tax fraud but proposes a civil rather than criminal settlement. Expert witnesses review HMRC's financial reconstruction, challenge the methodology where incorrect, and produce independent technical analysis of the correct tax position.

A standard HMRC enquiry under s9A TMA 1970 is an enquiry into a tax return, triggered randomly or by a risk factor. COP8 is specifically for suspected fraud, it carries greater gravity, HMRC has wider powers, and the resolution process typically involves a detailed disclosure and negotiated settlement of the underpaid tax.

Early expert instruction in COP8 investigations allows the taxpayer's advisers to understand the strength of HMRC's reconstruction before engaging in settlement negotiations, and to challenge methodology failures that could significantly reduce the settlement figure.