UK HMRC COP9 + CDF Tax-Fraud Disclosure 2026/27: Step-by-Step
HMRC COP9 and the Contractual Disclosure Facility 2026/27: the 60-day decision, Outline and Formal Disclosure, penalty ranges up to 200% and time limits.
2026/27 COP9 / CDF at a glance
Decision window
60 days
From receiving the CDF offer
Maximum inaccuracy penalty
200%
Offshore category 3, FA 2007 Sch 24 para 4(4)
Time limit (deliberate)
20 years
TMA 1970 s.36(1A)
If you accept and disclose fully
No HMRC criminal investigation
Into the frauds you disclose
The CDF process
- Step 1
HMRC offers the CDF
- Day 0HMRC writes because it suspects tax fraud. The letter offers a Contractual Disclosure Facility contract and encloses an acceptance letter, a rejection letter, an Outline Disclosure form and a copy of Code of Practice 9. HMRC strongly advises getting independent advice before completing any CDF letter or form.
- Step 2
Decide: accept or reject
- Within 60 daysYou have 60 calendar days from receiving the letter to accept or reject. The deadline is extended only in exceptional circumstances (email [email protected]). If you do neither, HMRC treats it as a rejection. During the 60 days HMRC will not contact you about the fraud, but it can continue debt collection and action against goods.
- Step 3
Accept and make an Outline Disclosure
- Within the same 60 daysReturn the signed Acceptance Letter with a valid Outline Disclosure: an honest description of the deliberate behaviour that brought about a loss of tax, the period it covers, and any non-deliberate losses. Precise figures are not expected yet. An Outline Disclosure that lists only non-deliberate errors is invalid. HMRC expects a payment on account of the tax you think is owed, which also stops interest growing on that amount.
- Step 4
Disclosure Report, if needed
- Timetable agreed with HMRCIn most cases a Disclosure Report follows. HMRC agrees its scope and timetable with you and your adviser, may ask for progress meetings, and can take over the investigation if progress is inadequate. The report must quantify every loss, explain the calculations, and distinguish deliberate from non-deliberate behaviour.
- Step 5
Formal Disclosure
- On completion of the reportYou sign four HMRC templates: a Certified Statement of worldwide assets and liabilities, a Certificate and Schedule of financial accounts, a Certificate and Schedule of financial cards, and a witnessed Certificate of Full Disclosure. A false certificate can lead to a criminal investigation for submitting a false document.
- Step 6
Settlement
- After the financial settlement is agreedHMRC agrees the tax, duty, interest and penalties with you before you complete the Formal Disclosure, and you pay them or enter a payment plan agreed with HMRC. Penalties reflect the extent of your cooperation. HMRC can publish details of deliberate defaulters in some cases; full cooperation from the start may avoid that.
Send the acceptance letter and Outline Disclosure to the address on HMRC's letter, or if you cannot find it to HM Revenue and Customs, Fraud Investigation Service, COP9 Centre, S1725, Newcastle, NE98 1ZZ.
Inaccuracy penalty ranges after an unprompted disclosure
| Matter | Careless | Deliberate | Deliberate and concealed | Floors if prompted |
|---|---|---|---|---|
| Domestic (category 1) | 0-30% | 20-70% | 30-100% | 15% / 35% / 50% |
| Offshore category 2 | 0-45% | 40-105% | 55-150% | 22.5% / 62.5% / 85% |
| Offshore category 3 | 0-60% | 50-140% | 70-200% | 30% / 80% / 110% |
Each range runs from the unprompted floor to the maximum in FA 2007 Schedule 24 paragraph 4. The floors are in paragraph 10 (domestic) and 10A (offshore). Offshore categories depend on how the territory is classified for penalty purposes. A careless penalty can be suspended for up to two years (paragraph 14); deliberate penalties cannot. HMRC's disclosure guidance says that if you took a significant period (normally over 3 years) to correct things, it is unlikely to reduce a penalty by more than 10 percentage points above the minimum.
Assessment time limits (Income Tax and CGT)
| Behaviour | Years after the tax year | Statute |
|---|---|---|
| Ordinary case | 4 | TMA 1970 s.34 |
| Careless | 6 | TMA 1970 s.36(1) |
| Offshore matter or offshore transfer | 12 | TMA 1970 s.36A |
| Deliberate (or failure to notify) | 20 | TMA 1970 s.36(1A) |
Inheritance Tax: 4 years, 6 years if careless, 20 years if deliberate, generally counted from the later of the payment and the due date (IHTA 1984 s.240). VAT: 4 years after the accounting period, 20 years in deliberate cases (VATA 1994 s.77).
Get independent advice first
This guide is general information, not legal advice. HMRC itself strongly advises independent advice before you complete any CDF letter or form or ask to enter a contract. If you have used form 64-8 for an agent, HMRC will deal with them unless you say otherwise; a new adviser can be authorised temporarily on form COMP1 sent with the Outline Disclosure.
Chartered tax advisers can be found through the Chartered Institute of Taxation and solicitors through the Law Society's Find a Solicitor service. TaxAid and LITRG provide free guidance for people on low incomes. HMRC's COP9 helpdesk ([email protected]) answers technical questions about the facility, but not about your own case.
Related guides
Frequently asked questions
What is COP9 and the Contractual Disclosure Facility?
Code of Practice 9 is HMRC's civil procedure for cases where it suspects tax fraud but has decided not to start a criminal investigation. It offers a contract, the Contractual Disclosure Facility (CDF): you admit that your deliberate behaviour brought about a loss of tax, disclose all of it, and cooperate; in return HMRC undertakes not to open a criminal investigation into the frauds you disclose. HMRC keeps complete discretion to prosecute where it considers it appropriate, and the CDF is only for deliberate behaviour, not careless errors or avoidance.
Should I accept the CDF offer?
Only you can decide, with independent advice. HMRC's guidance says accepting and making a full disclosure is the only way to guarantee it will not criminally investigate with a view to prosecution. Accepting means admitting deliberate behaviour, and withdrawing that admission later without good reason is treated as repudiating the contract. The CDF is not suitable if you have only careless errors to disclose; in that case COP9 says to reject the offer.
What counts as tax fraud for COP9?
COP9 defines tax fraud as any dishonest deliberate behaviour in respect of a tax liability that exposes HMRC to a risk of loss. It includes conduct that could be prosecuted as cheating the public revenue, a statutory offence of fraudulent evasion of tax, or fraud: for example lying to HMRC or concealing facts, dishonestly claiming reliefs or repayments, or deliberately paying less than is owed. Fraudulent evasion of income tax under TMA 1970 s.106A carries up to 14 years' imprisonment on indictment for an offence committed on or after 22 February 2024, when Finance Act 2024 s.32 raised the maximum; for an earlier offence the maximum is 7 years.
What happens if I reject the CDF?
If you do not believe your deliberate behaviour caused a loss of tax, you sign and return the rejection letter within the 60 days, with any explanation and documents. HMRC says it keeps an open mind and, if it verifies your explanation, will confirm it no longer suspects fraud. Otherwise it starts its own investigation, which may be criminal, and the rejection letter and anything you provide can be used as evidence in court or tribunal proceedings.
What happens if I do not respond within 60 days?
HMRC treats silence as a decision to reject the offer and will begin either a civil or a criminal investigation. The 60-day deadline can be extended only in exceptional circumstances, by emailing [email protected], and HMRC says it replies within 7 days.
Will HMRC prosecute if I accept the CDF?
HMRC undertakes not to criminally investigate the frauds you disclose. That undertaking does not bind the police or regulators, does not cover offences that are not against HMRC, and applies only to you, not to others named in your disclosure. HMRC can still open a criminal investigation into frauds you did not disclose, into a false statement or document made during the investigation, or into false Formal Disclosure documents.
How are penalties worked out in a COP9 case?
Under Finance Act 2007 Schedule 24, an inaccuracy penalty is a percentage of the potential lost revenue: up to 30% careless, 70% deliberate and 100% deliberate and concealed for domestic matters, rising to 200% for some offshore matters. HMRC must reduce it for the quality of your disclosure (telling, helping, giving access, and timing) but not below a statutory floor that depends on whether the disclosure was prompted. COP9 notes that in some cases penalties can exceed 200%, subject to reduction.
How far back will a COP9 investigation go?
Where a loss of Income Tax or Capital Gains Tax was brought about deliberately, HMRC can assess up to 20 years after the end of the tax year (TMA 1970 s.36(1A)). Other time limits are 4 years ordinarily, 6 for careless errors and 12 for offshore matters. Inheritance Tax (IHTA 1984 s.240) and VAT (VATA 1994 s.77) also have 20-year limits for deliberate cases.
Can I ask HMRC for the CDF before it contacts me?
Yes. You can ask to be considered for a CDF contract on form CDF1. HMRC does not have to offer one, and cannot if you are already under criminal investigation by HMRC or another agency. If you are already dealing with an HMRC officer on another matter, tell that officer. If your errors were not deliberate, HMRC's other disclosure routes apply instead: the Digital Disclosure Service, the Worldwide Disclosure Facility for offshore matters and the Let Property Campaign for residential landlords.
Can HMRC use its information powers during COP9?
Yes. COP9 says HMRC can use its sanctions and powers to obtain information and documents, backed by penalties, and approach third parties. Under Finance Act 2008 Schedule 36 it can issue information notices to you and to third parties and inspect business premises. Legally privileged material is protected.