HMRC Interview Under Caution

When HMRC (His Majesty’s Revenue and Customs) suspects any discrepancies in your tax returns, they may ask you to attend an HMRC interview under caution. If you attend the interview, you will be warned or cautioned that you do not have to say anything, but it may harm your defence if you do not mention when questioned something that you later rely on in your defence should the case go to court. The HMRC officer cannot interview you without formally administering the caution.

During the interview, an HMRC officer will ask you questions about your tax affairs. The officer may also ask you to provide evidence to support your answers. You do not have to respond. If you do not answer truthfully, or if you fail to provide evidence when requested, this may be used against you in court.

You are not obliged to attend a meeting of this kind, although failing to attend can have consequences on the investigative process and HMRC can make a decision without taking into account any explanation or defence that you may have. The invitation to attend will come in the form of a letter from the HMRC.

It is important to note that you have the right to remain silent during the interview and to seek legal advice before answering any questions. You also have the right to have a legal representative present during the interview. It is recommended that you seek legal advice before attending an HMRC interview under caution to ensure that you are fully aware of your rights and obligations.

As with any criminal investigation, obtaining legal advice at an early stage is crucial. If you would like to discuss any aspect of your case, please contact us through our contact page here. Alternatively you can phone 0333 240 7373, or email us at info@reeds.co.uk. Reeds Solicitors is an award winning and leading top-tier criminal defence firm.

How Can Reeds Solicitors Help?

It is recommended that you seek HMRC interview under caution representation as soon as you receive an invitation to attend an interview. The HMRC interview under caution solicitors at Reeds Solicitors have expert knowledge and experience in advising those facing an interview with the HMRC. Your solicitor will inform you of the options available and advise you on how to navigate the interview to your advantage. Your solicitor will also ask the HMRC for initial disclosure which can enable an early consultation to take place with you in relation to the tax discrepancies the HMRC is considering.

At this early stage, a solicitor can look through your accounts and documentation to consider why you may be under investigation. They will help gather evidence and proactively prepare arguments to counter any allegations of fraud. If you choose to attend the interview, a solicitor can help you prepare for the interview and represent you during the meeting – giving you on hand advice when you need it most.

Reeds Solicitors is an award winning and leading top-tier criminal defence firm. We are a national firm which is consistently ranked ‘top-tier’ in the Legal 500 for our criminal defence work. We believe in working hard to provide a proactive top-tier defence to all our clients.

Frequently Asked Questions on HMRC Interviews Under Caution:

Why have I been invited to an interview with HMRC?

The HMRC may invite you to attend an interview (under caution or otherwise) if they have noticed or been notified of any irregularities in your documentation and accounts or if they have received a report from a third party.

HMRC may have reason to believe that these irregularities may indicate that you have committed a crime, such as:

Money Laundering.
Tax Fraud or Tax Evasion (including aggressive tax avoidance schemes).
Illegal Importation or Exportation of Goods.
Making False Financial Statements
Taxation Fraud Related to Crime or Organised Crime.

An investigation by HMRC could be triggered by:

Tax returns.
A mistake.
A random check.
Whistle blowing from within your company.
Information conflicting with the details you’ve provided (such as a mortgage application showing a higher income than that disclosed to HMRC).

In the initial stages HMRC may not disclose the reasons for their enquiry, or the details of their investigation. Your first hint that something may be occurring is that HMRC may request more information about recent transactions or latest tax returns.

What should I do if I’m invited to attend an interview with HMRC?

If you have received an invite to attend an interview under caution with the HMRC it is important that you act upon it. Do not ignore it.

Contact a criminal defence solicitor as soon as possible to receive tailored advice and legal representation. You may think that appointing a solicitor could imply guilt, but this is not the case. Instructing legal representation is the best way to navigate difficult situations which could have dire circumstances.

What happens during an Interview Under Caution?

If you choose to attend the HMRC interview under caution, then the caution will be read out. This caution reminds you of your rights through the interview, and it also states that anything you say can (and will) be used in evidence. This places importance on what is and isn’t said in this interview.

Due to this, even if you believe you have not done anything wrong it is best to seek legal advice and representation.

The caution that is said at the beginning of the interview is:

“You do not have to say anything but it may harm your defence if you do not mention something when questioned that you later rely on in court. Anything you do say may be given in evidence”

Whilst this caution reminds you of your right to not speak (or give a “no comment” interview!), not saying something when questioned can have consequences later in the proceedings. It is important to appear to be cooperative, but not harm your defence by saying the wrong thing, you may be having to recall complex matters from some considerable time ago. A solicitor will be able to assist you in navigating what should be said, and what should be left unsaid during such an interview. Your solicitor will also advise on whether a written statement should be provided to HMRC setting out your explanation or version of events and the best time to do so.

During the interview the HMRC investigators will provide you and your representative with the ‘disclosure’ outlining the reasons why you have been invited for an interview. You will then have the opportunity to discuss this information with your solicitor in private prior to the interview. You can discuss the claims and any evidence or information you have to argue your defence. “We” will request HMRC to provide this information in advance of the interview so as to prepare fully for the interview under caution.

What are my options and rights during an interview under caution?

It is important to discuss your options for an HMRC Interview Under Caution with a solicitor.

As you have not been arrested, an interview under caution with the HMRC is voluntary. You are not required to attend but if you do attend you can leave the interview at any time. However not attending this interview can have negative consequences. If there is enough evidence against you it could lead to you being formally arrested. Yet if there isn’t enough evidence against you the matter may lead to no further action.

Your options are;

Choose not to attend.
To attend and provide a no-comment interview – i.e. remain silent
To attend and give your account of events.
To attend and give a written statement but not answer further questions.

What happens after an interview under caution for Fraud?

Following an interview under caution you may be required to attend another meeting or hearing. Based upon your answers to the questions in the HMRC interview and the evidence gathered so far, there are several possibilities:

Request that you attend another meeting.
Inform you that they are ending the investigation.
You may receive a formal caution – which you may accept or not depending on the advice from your legal representative.
That you must pay an administrative penalty. This is usually a sum equivalent to 30% of the additional tax due to HMRC.
That a criminal investigation has been started – they will build a case against you for prosecution.

When will I get a decision regarding an interview under caution?

Usually, decisions from an HMRC interview under caution will be given to you within two months of the meeting. If the decision process will take longer than this, you will be informed in writing.

What Happens During an HMRC Investigation?

During an HMRC investigation the HMRC will examine documents and evidence that they consider relevant to assess whether there has been any criminal offending.

If you have attended an interview under caution with the HMRC and have answered questions or prepared a statement providing your defence to the allegations, HMRC will take this into account during their deliberations.

For more information, please see our webpage on HMRC Investigations.

Our article on how HMRC investigations are ramping up may be of interest too.

What Penalties Can the HMRC Impose?

Understanding the penalties imposed by HMRC is crucial for taxpayers who may face consequences for errors on their tax returns. The severity of the penalties depends on the nature of the error committed:

Careless Error: For mistakes made without intention, HMRC may impose a penalty ranging from 0% to 30% of the additional tax due, based on the level of cooperation and disclosure from the taxpayer.
Deliberate Error: If an error is made intentionally but not concealed, the penalty can range from 20% to 70% of the extra tax due. The exact percentage will depend on factors such as cooperation, disclosure, and the overall severity of the error.
Deliberate and Concealed Error: In cases where the error is both intentional and deliberately hidden, the penalty can be significantly higher, ranging from 30% to 100% of the additional tax due. The exact amount is determined by considering the taxpayer’s cooperation, the extent of the concealment, and the severity of the error.

Can I Receive Legal Aid for an Interview Under Caution?

Many individuals are entitled to receive free legal advice for an Interview Under Caution. We can assess your eligibility in your entitlement to receiving this funding. We can also provide information about the advantages and disadvantages of relying on legal aid. Legal aid has limitations in what it covers, and it would be worth considering hiring a solicitor on a private paying basis so that all of the work that is needed to defend you can be carried out.

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