Contractual Disclosure Facility

HMRC Contractual Disclosure Facility 

The Contractual Disclosure Facility (CDF) is used by HMRC to approach individuals about whom it has received information or evidence to suggest that they have been fraudulent in disclosing their tax liabilities.

If you have been approached by HMRC you should seek professional advice to assist you through the tax disclosure process. You can call our experienced team on 0113 387 5670 to discuss your circumstances in complete confidence. We have guided a number of individuals with the CDF process.

How the Contractual Disclosure Facility works

HMRC will ask the individual to enter into a contract with them. The headline terms being that if the individual admits to committing tax fraud, provided they agree to make a full and complete tax disclosure, supplemented by a cooperative approach throughout the investigations process, then they will be offered immunity from prosecution.

Under the terms of the Contractual Disclosure Facility taxpayers can reply in a summarised manner within 60 days of HMRC’s first contact. This can be undertaken by using HMRC’s Outline Disclosure Form.

Following acceptance of this outline disclosure, a meeting with HMRC will be arranged to discuss the disclosure and the individual's tax affairs. A disclosure report will then be commissioned by the individual and prepared within an agreed period of time with HMRC.

HMRC Disclosure Facility 

Through our experience of guiding clients through the CDF it has become clear that completing the Outline Disclosure Form is essential as HMRC puts a lot of weight on the information provided. The completed form also helps protect taxpayers’ rights.

Recently there has been a series of Tax Avoidance Scheme cases that have been opened up as more serious CDF Investigations (under HMRC's Code of Practice 9 - COP9), whereas previously they would have been opened as non-fraud cases under the Code of Practice 8 - COP8. By doing so HMRC is bringing more pressure to bear on those individuals who have taken part in these marketed avoidance schemes.

We understand that for many people in these situations, they are not aware that they may have committed any tax fraud. In these circumstances we have successfully negotiated with HMRC on this point whilst maintaining an open and cooperative approach throughout the investigations process.

For more information about HMRC's Contractual Disclosure Facility (CDF) or to discuss your circumstances with trusted and experienced tax disclosure professionals in complete confidence please call us on 0113 387 5670 or fill out an Enquiry Form.

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To hear more about our Tax Investigation Services or to discuss a potential case with a member of our team, call us on 0113 387 5670.

Alternatively, you can email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.
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