HMRC • TAX FRAUD • INTERVIEW UNDER CAUTION

HMRC Criminal Investigations

Q: Can HMRC interview me under caution?

Yes. HMRC may conduct interviews under caution in criminal investigations. The suspected conduct, available disclosure, financial records and interview strategy should be considered before interview.

An HMRC criminal investigation can involve tax records, company material, bank transactions, digital evidence, interviews under caution and potential proceeds-of-crime exposure. The immediate task is to identify the suspected conduct, the evidential period and whether HMRC is pursuing a criminal route rather than a civil fraud process.

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When HMRC uses criminal investigation

HMRC's published policy says civil fraud procedures are used where appropriate, but criminal investigation may be chosen for serious or repeated conduct, false documents, deliberate concealment, abuse of trust or links to wider criminality. HMRC investigates; in England and Wales the decision whether a case should be criminally prosecuted is made by the independent prosecution authority, the Crown Prosecution Service. The facts of the individual case still determine the route.

We advise on fraud allegations, dishonesty offences, money laundering, conspiracy, business-related investigations and associated proceeds-of-crime issues. The precise strategy depends on the transaction history, the client’s role, the state of disclosure and what the prosecution says can be inferred from the documents.

Criminal investigation is different from a civil tax enquiry

A civil fraud process and a criminal investigation are not interchangeable. Code of Practice 9 and the Contractual Disclosure Facility are civil fraud procedures offered in selected cases: where a valid CDF is accepted and the required complete disclosure is made, HMRC undertakes not to commence a criminal investigation into the disclosed fraud. Rejection, failure to respond or failure to comply with the CDF terms can leave HMRC free to investigate criminally. In a criminal case, statements, documents, device material and explanations may be used evidentially, and any interview under caution requires careful preparation.

The criminal case and the asset case must be considered together.

Do not assume that material prepared for a tax or accounting purpose can simply be handed over in a criminal investigation without considering relevance, privilege, accuracy and evidential consequences.

Interviews, searches, seizures and asset exposure

Depending on the investigation, the client may face an interview under caution, demands for records, search activity, seizure of devices or documents and separate financial measures. We identify the legal basis of each step and keep the criminal allegation, the documentary evidence and any asset proceedings analytically separate.

How we approach HMRC document-heavy cases

ChronologyBuild the transaction and communication timeline before drawing conclusions.

Source documentsWork from statements, contracts, invoices, messages and underlying records.

Role analysisSeparate the client’s actual role from assumptions based on association or access.

Financial consequencesConsider restraint, confiscation and third-party issues alongside the criminal case.

Pre-charge strategy before a prosecution decision

Where the investigation remains open, the defence may need to correct a factual premise, explain a transaction, identify missing records, preserve material or challenge an inference about dishonesty, knowledge or participation. Any representations should be evidence-led and directed to a point capable of affecting the eventual charging assessment.

We can advise on interview preparation, disclosure strategy, preservation of records, engagement with HMRC investigators and, where justified, focused pre-charge representations.

Frequently asked questions

Can you act before a fraud charge is brought?

Yes. We advise during investigations, including interview preparation, evidence analysis, bail and pre-charge representations.

Can a fraud case also involve POCA proceedings?

Yes. Proceeds-of-crime issues can arise during an investigation and after conviction. The legal route depends on the circumstances and the order sought.

What should I do if an account has been frozen?

Obtain the order and legal advice promptly. The deadlines, evidence and available applications depend on the type of order and procedural stage.

FINANCIAL INVESTIGATION STRATEGY

Reconstruct the tax position, transaction and decision-making

Fraud and financial-crime cases can become document-heavy very quickly. The defence should separate what the records actually prove from the inferences the prosecution asks the court to draw about knowledge, dishonesty, participation and benefit.

Tax, banking and transaction records

Returns, accounts, bank statements, payment trails and ledger entries need to be read together. A discrepancy may require explanation, but the criminal question is not answered simply by showing that a tax figure was wrong.

Companies, advisers and delegated roles

Company records, engagement letters, instructions to accountants or tax advisers, delegated authority and internal communications may show who prepared information, who approved it and what the client actually knew.

Emails, devices and open-source material

HMRC may rely on communications, device material and publicly available information. The defence should test chronology, authorship, context, search methodology and whether apparently incriminating extracts are being read in isolation.

POCA and financial consequences

A conviction can lead to confiscation proceedings distinct from the criminal trial. Benefit, criminal-lifestyle assumptions, available amount, jointly held assets and third-party interests should be considered early where financial exposure may become substantial.

Useful documents for an initial HMRC criminal review

the allegation, search warrant or interview disclosure;
key contracts, invoices and corporate documents;
bank statements or transaction schedules relevant to the allegation;
messages or emails that explain authority, knowledge or purpose;
a concise description of the client's role and who else held decision-making responsibility; and
any restraint, account-freezing or confiscation order already made.

POCA & confiscation Pre-charge representations Crown Court

SPECIFIC FINANCIAL PROBLEMS

Go straight to the issue you are facing

Financial investigations often split into distinct procedural problems. These pages address the immediate order, evidence or allegation rather than treating everything as generic fraud.

Frozen accountAccount Freezing Orders Criminal investigationMoney Laundering Defence Assets restrainedPOCA Restraint Orders Cash detainedCash Seizure & Forfeiture

LEGAL GUIDEUpdated 30 September 2026

Prepared by Theodorous. Principal Solicitor: Paris Theodorou.

Official sourcesHMRC criminal investigation policy — GOV.UK Code of Practice 9 and Contractual Disclosure Facility — HMRC HMRC Fraud Investigation Service technical note 2025–26 — GOV.UK HMRC criminal investigation powers and safeguards — GOV.UK

Fraud & POCA

Get control of the investigation before the records are interpreted for you.

We can assess the HMRC investigation, the interview position, the accounting and transaction records, any parallel asset issue and the next procedural step.

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Frequently asked questions

HMRC criminal investigation FAQs

Is Code of Practice 9 a criminal investigation?

No. COP9 is HMRC’s civil fraud procedure for selected cases where fraud is suspected. The Contractual Disclosure Facility offers a route to disclose deliberate behaviour under a contractual framework; it is legally and strategically different from a criminal investigation.

What happens if I reject or do not respond to a CDF offer?

HMRC states that rejection, non-response or failure to comply properly with the CDF terms can leave it free to commence a criminal investigation into the suspected tax fraud. The 60-day response period therefore needs to be treated seriously.

Can HMRC interview me under caution?

Yes. In England and Wales HMRC's criminal investigation powers are made available through PACE, and HMRC may conduct an interview under caution. The suspected conduct, available disclosure, financial records and the risks of answering, declining to answer or giving a prepared account should be considered before interview.

Should I provide documents voluntarily to HMRC investigators?

Not without understanding the legal basis of the request, any compulsory power being used, privilege and the potential evidential consequences. Cooperation may be appropriate, but disclosure should be deliberate, accurate and legally informed.

Can an HMRC criminal investigation involve asset freezing or POCA?

Yes. Depending on the case, criminal investigation can overlap with account freezing, restraint, confiscation or other proceeds-of-crime issues. Those processes have their own legal tests and evidence requirements and may need separate urgent advice.