HMRC interviews under caution

HMRC interviews someone under caution when it is carrying out a criminal investigation and wants to question a suspect about an offence, either after arrest or at a voluntary interview the person attends by invitation. In England and Wales the Police and Criminal Evidence Act 1984 (PACE) and its Code C apply to HMRC officers, giving the suspect the right to know what they are suspected of, to free legal advice and to a solicitor in the interview. Because both answers and silence can be used in court, nobody should attend without a criminal defence solicitor.

What is an interview under caution?

PACE Code C paragraph 10.1 says that a person whom there are grounds to suspect of an offence must be cautioned before being asked questions about it, if their answers or silence may be given in evidence in a prosecution. Paragraph 11.1A defines an interview as questioning about a person’s involvement or suspected involvement in a criminal offence which must be carried out under caution. The standard caution in paragraph 10.5 is:

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

An invitation to an interview under caution therefore means you are a suspect in a criminal investigation, not a taxpayer in a civil enquiry.

Why do police rules apply to HMRC?

The Police and Criminal Evidence Act 1984 (Application to Revenue and Customs) Order 2015 applies the provisions listed in its Schedule 1 to HMRC criminal investigations and to people detained by HMRC officers (article 3). The list includes section 58 of PACE, the right of access to legal advice, and sections 66 and 67 on the codes of practice. Section 67(9) of PACE requires anyone other than a police officer who is charged with investigating offences to have regard to the codes.

HMRC’s guidance on its criminal powers confirms that its powers in England and Wales come from PACE, those in Northern Ireland from the PACE (Northern Ireland) Order 1989, and those in Scotland from separate Scottish legislation. It also says HMRC cannot take fingerprints, or charge or bail suspects; those steps are done by the police. Only trained authorised officers in the Fraud Investigation Service and the Risk and Intelligence Service can use criminal powers, and HMRC has around 1,500 officers with the power of arrest. See HMRC’s Fraud Investigation Service.

When does HMRC interview someone under caution?

Only within a criminal investigation, when HMRC wants to put questions to someone it suspects of an offence. There are two settings:

• After arrest. Code C paragraph 11.1 says that once a decision to arrest has been made, the suspect must normally be interviewed only at a police station or other authorised place of detention.
• Voluntary interview. Under paragraph 3.21, a person who attends voluntarily may leave at will unless arrested, and may only be prevented from leaving if arrest becomes necessary. Paragraph 3.22 allows a voluntary interview at another place, such as the suspect’s home, with their consent.

Searches often come first; see HMRC search warrants and raids. HMRC’s criminal investigation policy lists the circumstances in which it generally considers criminal action, including false statements or documents given during a civil investigation.

What rights apply at a voluntary interview?

Paragraph 10.2 says a person who is cautioned but not under arrest must be told so, and told of the rights in paragraphs 3.21 to 3.21B. Paragraph 3.21A requires the interviewer to explain that:

• they will be given enough information to understand the nature of the offence and why they are suspected of it;
• they may get free and independent legal advice, including speaking to a solicitor by telephone and having one present in the interview, and the interview will be delayed until they have it;
• an appropriate adult or interpreter will be arranged where needed;
• the whole interview will be audio or visually recorded, and agreeing to the interview means agreeing to the recording.

Paragraph 3.22A requires the suspect to confirm they agree to the interview going ahead before any questions about the offence. Paragraph 6.4 says officers must not say or do anything intended to dissuade a person from getting legal advice.

Can staying silent count against you?

It can. Section 34 of the Criminal Justice and Public Order Act 1994 allows a court to draw proper inferences where a person questioned under caution failed to mention a fact later relied on in their defence that they could reasonably have been expected to mention. Section 34(4) applies this to questioning by people other than constables who are charged with investigating offences.

There is an important safeguard. Under section 34(2A), no inference can be drawn from a failure at an authorised place of detention if the person had not been allowed to consult a solicitor first. Code C Annex C sets out this restriction and the different caution wording used when it applies. Code C paragraph 11.4 also requires the interviewer to put to the suspect at the start any significant statement or silence that occurred earlier, for example during a search, and ask whether they confirm or deny it.

Why is legal representation essential?

• Everything is evidence. The interview is recorded, and anything said may be given in evidence.
• Silence is a tactical decision. Whether to answer, decline or give some explanation depends on the evidence and on section 34. That is a judgement for a lawyer who knows the disclosure.
• Disclosure is limited. Paragraph 11.1A says the suspect and their solicitor must be given enough information to understand the offence, but the officer decides how much detail to give and need not disclose anything that might prejudice the investigation. A solicitor can test what is given and advise in private before the interview.
• An accountant is not a solicitor. Code C paragraph 6.12 defines a solicitor as one holding a current practising certificate, or an accredited or probationary representative on the Legal Aid Agency’s register. A tax adviser can support the solicitor on technical points, but cannot provide the legal advice the code protects.
• Privilege. Section 10 of PACE protects communications between a professional legal adviser and client made in connection with legal advice, unless held to further a criminal purpose.
• Civil consequences run in parallel. HMRC says a person can be under criminal investigation and subject to civil assessment and collection of tax at the same time, so answers given in one setting need to be consistent with positions taken in the other.

How is this different from a COP9 or enquiry meeting?

A civil meeting is not an interview under caution. FCIM201045 in HMRC’s Fraud Civil Investigation Manual records HMRC’s view that PACE Code C does not apply to work under Code of Practice 9, because COP9 officers cannot start a criminal investigation. If a new fraud is mentioned at a COP9 meeting, FCIM205060 says the officer should make clear they are a civil investigator not charged with investigating criminal conduct, and that any criminal investigation is a decision for FIS (Crime). Civil enquiry meetings are covered in meeting HMRC in an enquiry, and the limits of COP9 protection in does COP9 protect you from prosecution.

What happens after the interview?

HMRC does not decide whether to prosecute. The file goes to the independent prosecutor: the Crown Prosecution Service in England and Wales, the Crown Office and Procurator Fiscal Service in Scotland or the Public Prosecution Service in Northern Ireland. If charges follow, Code C section 16 requires a written notice setting out the offence. The offences usually charged are explained in cheating the public revenue or fraudulent evasion.

Illustration only. A company director receives a letter inviting her to a voluntary interview under caution at an HMRC office about the company’s VAT returns. She assumes it is like a compliance meeting and plans to bring her accountant. Her accountant is not a solicitor for Code C purposes. She instructs a criminal defence solicitor, who obtains HMRC’s pre interview disclosure, advises her in private and attends with her, while the accountant prepares a technical note for the solicitor.

What mistakes do people make?

• Treating the invitation as a routine tax meeting.
• Attending with only an accountant.
• Answering questions informally before the caution, for example during a search.
• Giving explanations in interview that conflict with figures already sent to HMRC.

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Sources

• GOV.UK: Pace code c 2023 accessible
• legislation.gov.uk: SI 2015/1783
• legislation.gov.uk: Act 1984 c. 60, section 67
• GOV.UK: Criminal investigation
• GOV.UK: Hmrc criminal investigation policy
• legislation.gov.uk: Act 1994 c. 33, section 34
• legislation.gov.uk: Act 1984 c. 60, section 10
• GOV.UK: Manual page FCIM201045
• GOV.UK: Manual page FCIM205060

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 24 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.