Local Compliance Fraud

HMRC tax investigations are in the main conducted from three business sections being:

  • Specialist Investigations
  • Local Compliance Fraud
  • Local Compliance

It is possible to make an educated guess as to the severity of the tax investigation you are being subject to by the name on the letterhead. Tax Investigations can move between Local Compliance and Local Compliance Fraud or Specialist Investigations. This is because Local Compliance Fraud and Specialist Investigations deal with cases of suspected serious tax evasion using the Contractual Disclosure Facility Code of Practice 9 tax investigations.

Local Compliance Fraud only deals with cases of suspected serious fraud using the Contractual Disclosure Facility. The difference between Local Compliance Fraud and Specialist Investigations is merely that the suspected tax evasion for Local Compliance Fraud to issue a Code of Practice 9 tax investigation is between £75,000 and £499,999 where as Specialist Investigations will offer the Contractual Disclosure Facility Code of Practice 9 tax investigation for amounts of suspected fraud of over £500,000.

The Local Compliance Fraud teams are based all over the UK. There are 11 teams who are authorized to conduct tax investigations using the Contractual Disclosure Facility spread around the UK. There are two Local Compliance Fraud teams in Scotland, one in Northern Ireland and one in Wales. The remaining 7 are based in England at the following locations:

  • Local Compliance Fraud: London
  • Local Compliance Fraud: Leeds
  • Local Compliance Fraud: Nottingham
  • Local Compliance Fraud: Stockport
  • Local Compliance Fraud: Southampton
  • Local Compliance Fraud: Wolverhampton
  • Local Compliance Fraud: Bristol

It is important to note, if you receive a letter from a Local Compliance Fraud officer offering you the opportunity to take part in the Contractual Disclosure Facility under Code of Practice 9, that HMRC consider that they have evidence of serious tax evasion. A tax investigation by the Local Compliance Fraud team should be taken seriously.

Further details about the Contractual Disclosure Facility and Code of Practice 9 tax investigations can be found by clicking on the appropriate links.

For HMRC’s guidance on the contractual disclosure facility and code of practice 9 click here.

Anyone who has received a letter from Local Compliance Fraud under the Contractual Disclosure Facility and Code of Practice 9 should seek professional representation from a tax advisor who is used to dealing with Local Compliance Fraud and tax investigations under the Contractual Disclosure Facility, Code of Practice 9.

Gilbert Tax understands that people sometimes make mistakes in their dealings with HMRC and that HMRC make mistakes in dealing with taxpayers. Many people do not know how to deal with HMRC or who to turn to for help resolve the tax dispute.

Gilbert Tax is a firm of tax advisors who specialise in resolving people's problems with HMRC. We have extensive expertise in dealing with all forms of tax investigations and tax disputes as well as with taking matters to the Tax Tribunal where agreement cannot be reached.

Gilbert Tax deal both directly with the individual who is under enquiry and also work with many firms of accountants supporting them in dealing with HMRC disputes and advising them on how to handle HRMC to get the best result.

The fact is that proper management of HMRC is the best way of reducing the tax, interest and penalty as well as the time taken in resolving any tax dispute.

Gilbert Tax are none judgemental and rigorously defend your position within the scope and parameter of the law. We take control and manage the process to minimise the interruptions that any form of tax investigation causes to an individual's life and business.