HMRC FIS Voluntary Interviews Under Caution

If you or your business have received a letter from HMRC’s Fraud Investigation Service (FIS), particularly one inviting you to attend a voluntary interview under caution, it is vital to seek specialist legal advice immediately.

At JMW, our business crime and regulation team has extensive experience dealing with HMRC tax investigations. We will help you respond quickly and effectively, protect your legal position and minimise the risk of prosecution. Where criminal proceedings arise, we offer defence services that can help you to avoid a conviction or an excessive sentence. We have a strong track record of achieving positive outcomes for individuals, professionals, directors and businesses facing FIS scrutiny.

To speak to our specialist business crime solicitors today, call JMW on 0345 872 6666, or fill in our online enquiry form to request a call back.

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A FIS letter will usually mark the beginning of an HMRC investigation, and invite you to attend an interview and give evidence. In these cases, you should seek legal advice immediately, and not attend any HMRC interview without a legal representative to accompany you. It is important to understand that accountants cannot be used as representatives in interviews under caution, and only specialists with legal expertise can deliver the best possible outcome for you.

Whether you personally have received an FIS letter from HMRC, or your business is under investigation, JMW's specialist HMRC defence solicitors are here to help. We can attend an interview with you, monitor the investigation process to make sure evidence is gathered legally, accompany you to a police station if necessary and advise you of potential outcomes at each stage of the process.

Our services include:

• Immediate advice and representation following receipt of an FIS letter
• Contacting HMRC on your behalf and managing all communications
• Requesting and analysing pre-interview disclosure
• Preparing you for FIS voluntary interviews and attending with you
• Advice and representation in interviews under caution as governed by the Police and Criminal Evidence Act 1984 (PACE)
• Converting criminal tax investigations into civil settlements where possible by admitting wrongdoing under Code of Practice 9 (COP9)
• Challenging asset-freezing orders, production orders and search warrants
• Assistance with dawn raids and rapid response to FIS visits
• Representation if a prosecution is brought for tax fraud
• Working with forensic accountants and tax specialists to strengthen your defence

Our team works quickly to minimise the stress, disruption and financial impact of an FIS investigation. We also operate a 24/7 emergency helpline to provide immediate support when urgent action is needed. JMW's experience in liaising with HMRC and in police interviews during joint investigations means we can represent you at all stages of the process and pursue a finding of no further action where possible.

We work closely with an extensive network of independent tax consultants, forensic accountants and specialist tax barristers to provide additional support in highly complex cases.

Meet Our Team

JMW's expert solicitors have a wealth of experience in liaising with HMRC investigators and providing defence services during investigations. Our strong track record of successful outcomes speaks to our thorough knowledge and our ability to prevent convictions or reduce penalties in many such cases.

What Is the Fraud Investigation Service and Why Have I Received a Letter?

HMRC’s Fraud Investigation Service is the department responsible for tackling serious tax fraud, deliberate under-declaration and suspected criminal behaviour. The organisation can conduct civil and criminal investigations to gather intelligence on suspected fraud, and its investigations may result in outcomes ranging from prosecution to fines or other financial penalties. FIS may carry out a civil investigation with the aim of recovering unpaid tax, plus penalties and interest, or in more serious cases, work with the police and other law enforcement agencies to pursue court prosecution that could lead to prison sentences.

FIS may contact you if HMRC believes there has been:

• Deliberate underpayment of VAT, Income Tax, Corporation Tax or Capital Gains Tax
• False or misleading tax returns
• Suppressed sales or undeclared income
• Use of false invoices or accounting irregularities
• Offshore income not declared
• Suspicious trading patterns or whistleblowing reports

There are several types of evidence that may trigger an investigation into suspected tax fraud, and any of the following could be a reason why HMRC officers have invited you to an interview or launched an investigation.

• Irregularities in submitted returns
• Whistleblower reports
• Sudden changes in turnover or costs
• Industry anomaly flags
• Offshore income or assets
• Cash-heavy business models
• Cryptoasset activity
• Sector-specific HMRC targeting

Any irregularity, minor or major, may prompt FIS involvement. As such, being invited to an interview with HMRC FIS officers does not mean that you will necessarily be prosecuted or that you have committed any offence. With this said, if you have been contacted by FIS, HMRC is likely considering whether criminal prosecution is appropriate. Being contacted by FIS is serious and you should seek immediate legal advice to minimise any risk of criminal prosecution or facing the potential penalties, whether or not you believe you have done anything wrong.

For more information on FIS, read our blog post on FIS and its powers during an investigation.

What Is a Voluntary Interview Under Caution?

A voluntary interview is one that you attend by choice, and you are free to leave at any time. You are not under arrest and cannot be compelled to ask any questions. This interview however is under caution. While you cannot be forced to attend a voluntary interview with HMRC, it may be in your best interests to do so. Refusing can lead HMRC to escalate the case, take a negative inference or proceed with arresting you, after which you must attend a compulsory interview.

You should not attend any FIS interviews without a solicitor. JMW will advise you on whether attending is in your best interests and prepare you thoroughly. We can also represent you during the process and help you to avoid unnecessary escalation, including arrest.

Will I Face Criminal Proceedings After an HMRC Interview?

Not all FIS investigations lead to prosecution, even if evidence of wrongdoing is found. COP9 offers an opportunity for someone to admit tax fraud and come clean in exchange for avoiding criminal prosecution. You are invited to make a full, voluntary disclosure of all deliberate tax irregularities. If you accept and cooperate with a full disclosure, HMRC will require repayment of tax, interest and penalties, but with no criminal prosecution. However, a failure to cooperate fully can still lead to criminal proceedings.

A civil settlement of tax liabilities, whether through COP9 or any other procedure usually leads to the end of an investigation, although penalty agreements may also apply. At JMW, our priority is to keep your case out of the criminal courts wherever possible and we will advise you of whether any of these approaches will be suitable in your circumstances.

If prosecution occurs, immediate legal advice is essential. Our solicitors will help you to build the strongest possible defence, and advise you on plea options where relevant. As an experienced business crime team, we offer comprehensive services to mitigate reputational and commercial risks and represent you at all stages of any proceedings that arise. We also collaborate with other departments of our full-service firm to help you to manage wider consequences, including any regulatory, corporate, reputational or personal impact.

What Penalties Could I Face Following a Criminal Investigation?

Penalties depend on HMRC’s assessment of whether any irregularities in your organisation's tax affairs were intentional or not. While penalties can still be imposed for genuine mistakes, they are less severe than those imposed where intentional fraudulent activity is proved following a criminal prosecution. In some cases, organisations can pay an administrative penalty to avoid being prosecuted, but this is not always possible.

If HMRC decides that there is enough evidence to charge you with an offence and launches a criminal prosecution, the penalties can include fines, disqualification of directors and even prison sentences for individuals involved in the most serious cases. With this said, early legal advice can prevent escalation and deliver the best possible outcome in your circumstances.

Q

What should I do if HMRC executes a search warrant or dawn raid?

A

FIS officers have powers to enter premises and seize property. This is typically part of a dawn raid, where several premises at once are targeted early in the morning in a coordinated evidence gathering effort. While FIS officers can gather evidence in this way, they do not always exercise these powers correctly. Failures on their part may lead to evidence becoming inadmissible and challenge the integrity of FIS' case.

If you are targeted by a dawn raid, you should:

• Stay calm
• Contact us immediately
• Avoid answering questions without legal advice

Rapid legal intervention can protect your rights and limit the scope of the search. It is vital to act quickly and speak to a solicitor as early in the process as you can.

Q

What is pre-interview disclosure?

A

This is information HMRC provides before your interview. It will outline:

• The suspected offence
• The basis for the allegation
• Evidence HMRC intends to rely upon

We always request pre-interview disclosure from HMRC to establish that you understand the allegations fully before answering any questions. This also allows us to develop a legal strategy that directly responds to the key elements of the investigation.

Q

How far back can FIS investigate?

A

While there are some time limits on the suspected offences that FIS can investigate, they rarely impede the progress of an investigation where HMRC suspects criminal activity or fraud are involved.

The basic position is that HMRC can investigate:

• The previous six years for careless errors
• The previous 20 years for deliberate behaviour
• longer periods for criminal investigations

This may mean that you need to secure significant evidence to comply with the investigation process. A solicitor from JMW's team will help you understand what historical records may be required.

Q

What records might FIS ask for?

A

Depending on the allegations, the evidence you need to provide may include:

• Bank and credit card statements
• Sales invoices
• Payroll records
• VAT documentation
• Emails and correspondence
• Overseas asset/transaction records
• Cryptoasset transaction history
• Company accounts and ledgers

At JMW, we manage and review any disclosures safely. Alongside our interview under caution representation, we gather evidence on your behalf and build the strongest possible case to minimise the risk of an investigation moving forward or resulting in a prosecution.