Increase in tax investigations

HMRC opened 1,091 serious tax investigations in a year

Analysis by law firm Pinsent Masons shows that HMRC opened 1,091 serious tax investigations in the 12 months to March 31, 2023. There were 417 COP8 investigations, which look into the most serious suspected cases of tax evasion, as well as 674 COP9 civil investigations into those believed to be avoiding tax. In total, HMRC has 3,300 COP8 and COP9 investigations under way. These probes allow taxpayers to avoid the heaviest penalties if they cooperate fully with the tax office. Pinsent Masons said COP9 investigations generated £89m for HMRC in the 12 months to March 31, 2023, while COP8 investigations generated £72.4m. Sophie Warren, tax manager at Pinsent Masons, said the number of serious tax investigations opened “demonstrates the extent of HMRC’s crackdown on the most serious tax evasion and avoidance.”