Dawn raids are designed to be unexpected, and they can be confusing and disorienting as a result. They often take place in the early hours of the morning and may be conducted simultaneously in multiple locations, including business premises and private residences. In the UK, several authorities can carry out dawn raids separately or in combination, including the police, HMRC, the Competition and Markets Authority and others. In each case, the legal powers these authorities can exercise and the codes of conduct that apply will differ. 

With all of this in mind, if you are surprised by a dawn raid, it can be difficult to respond appropriately. Ideally, businesses should have a thorough protocol in place to help them deal with a raid as it unfolds, but this may be difficult to implement under the circumstances. You can use JMW’s guide to dawn raids to help you design a protocol, or respond to a raid as it occurs. 

If you have failed to implement appropriate procedures, you may have serious concerns about how the investigation process might proceed in the immediate aftermath of a raid. You should contact an expert dawn raid solicitor at the earliest opportunity, as they will be able to review evidence, suggest practical steps you can take and advise you on what to expect from the next stages of an investigation.

Here, the experts from JMW Solicitors will explain some of the possible outcomes that might happen in the aftermath of an HMRC raid, and the evidence you can gather in order to secure the best possible outcome for yourself and your business. If you need to speak to a legal expert about a dawn raid by any authority, or another criminal investigation matter, call JMW Solicitors today on 0345 872 6666, or use our online enquiry form to request a call back.

How can I ensure that a raid was conducted lawfully?

There are regulations that govern how authorities execute dawn raids, including how they gather and process evidence. If they fail to do so, evidence may be inadmissible in court or there may be other serious consequences, so you should gather as much information as possible about the circumstances of the raid to ensure that HMRC met its legal requirements.

HMRC dawn raids are subject to the tax authority’s criminal investigation policy and the codes of practice detailed in the Police and Criminal Evidence Act (1984) (PACE). These regulations grant the tax authority the same powers given to the police for the purposes of conducting criminal investigations, although, in most cases, HMRC officers require a higher level of authority - or sometimes external authorisation - to use these powers.

You may make certain requests of HMRC investigators - for example, asking them to wait until you have sought legal advice before they commence the raid, to speak to your legal representative over the phone, or to make copies of documents before they are removed. In many cases, HMRC officers will grant these requests, but it is important to note that they are under no legal obligation to do so and their failure is not a violation of any of the applicable codes of practice.

What evidence can I collect?

Your first step following a raid should be to contact a solicitor. They will be able to discuss your specific circumstances, advise you of any immediate actions you should take, and prepare you for the most likely outcomes of the investigation. The team at JMW has many years of combined experience representing people who are subject to criminal investigations following dawn raids by HMRC and can guide you through the process of gathering and reviewing evidence to build and support your case.

Among the requirements listed in the codes of practice for PACE is that any information used to obtain a search warrant must be accurate, up-to-date and corroborated by an identifiable source. HMRC officers should show you their search warrant and leave a copy behind for you; if not, your solicitor can help you to get a copy. In this way, you can check the warrant and ensure it meets these requirements.

The search warrant should also contain details of the materials that officers are seeking, and identify any third parties who are entitled to be on the premises during the raid. This will help to establish limitations on the evidence that HMRC can collect and ensure that you understand the aims of the investigation. In terms of limitations, officers are not permitted to interview staff or others on the premises during the raid and you are under no obligation to answer questions, aside from those that may assist officers with their search.

Officers are allowed to confiscate hard drives that contain CCTV footage, but you should back up these files if you are able to access them and you should ask officers to leave the CCTV running during the search, especially if cameras cover the inside of the premises. This can help you to review the circumstances of the raid and ensure that procedures were followed correctly. Witness statements from employees may also help to identify any procedural failures that officers may have committed.

What happens after the raid?

There are several possible outcomes from an HMRC raid. In most cases, it will take officers some time to review the evidence they have collected. This can give you time to work with a solicitor to understand the nature of the investigation, anticipate what the next steps might be and prepare a response.

Individuals may be arrested during the raid, or may be invited for a voluntary interview on a date to be agreed. Either way, immediate advice from a lawyer experienced in such matters is vital to protect legal interests. 

The most common charges that might result from an HMRC dawn raid include fraudulent trading, fraud by false representation, VAT fraud and conspiracy to defraud. You should speak to a solicitor as urgently as possible following a raid, and provide them with any copies you have made of the evidence that was seized - in this way, they will be able to explain how the investigation might proceed and advise you of the best course of action.

The Business Crime and Regulation department at JMW has extensive experience in this area, including a thorough and intricate understanding of the procedures governing dawn raids, the relevant fraud charges and the regulations that apply to evidence. The team has been ranked in Tier 1 of the Legal 500 and Chambers and Partners guides. We work hard to support our clients and take steps to avoid criminal litigation wherever possible. Call us today on 0345 872 6666, or use our online enquiry form to request a call back.