Rejecting a COP9 Contractual Disclosure Facility offer

You have 60 days from receiving a Code of Practice 9 offer to accept or reject the Contractual Disclosure Facility. Rejecting it, or not replying, means you lose HMRC’s contractual promise not to investigate you criminally: the case goes back for a decision on criminal investigation and, if HMRC stays civil, it investigates with its formal powers. Rejection is meant only for people who genuinely believe they have not deliberately caused a loss of tax.

How does the 60 day deadline work?

HMRC’s guidance on the Contractual Disclosure Facility (CDF) says the 60 days run for 60 calendar days after you receive the letter. The pack contains an acceptance letter, a rejection letter, an Outline Disclosure form and a copy of Code of Practice 9 (COP9). Section 3 of COP9 says you can choose only one option, and that if you fail to choose, or fail to complete the acceptance properly and fully, HMRC treats that as your conscious decision to reject.

The deadline is extended only in exceptional circumstances. HMRC’s guidance says requests go by email to the COP9 Centre, which responds within 7 days. Its Fraud Civil Investigation Manual at FCIM204030 says an extension needs written approval from an Authorising Officer and a good reason, normally an unexpected or unusual event that was unforeseeable or beyond the person’s control, and not a failure to react quickly enough.

During the 60 days HMRC will not discuss your tax affairs or say why it suspects fraud. Its guidance says it can still take action against goods, start or continue debt collection and take other action it is legally obliged to take.

When is rejecting the right choice?

Section 2.1 of COP9 says the CDF is suitable only where deliberate behaviour has caused a loss of tax, duty or a payment administered by HMRC; it is not suitable for someone with only careless errors to disclose. Section 7 says you should sign the rejection letter only if you genuinely believe you have not caused such a loss through deliberate behaviour.

HMRC says it keeps an open mind about an innocent explanation and will consider any explanation or documents sent with the rejection. If it verifies and accepts the explanation, section 7 says it will issue a letter confirming it no longer suspects fraud. Internally, FCIM204060 says a rejection with an acceptable explanation showing the suspicion was unfounded goes to the Authorising Officer with proposals for ending the enquiry. A rejection supported by evidence is therefore far stronger than a bare signature.

What happens after you reject?

FCIM204060 sets out the sequence. HMRC acknowledges the rejection straight away. In all cases other than an accepted innocent explanation, it refers the case back to the criminal side of its Fraud Investigation Service to reconsider. If that team adopts the case, a criminal investigation follows. If not, the investigator proceeds under COP9 as a civil investigation, usually inviting you to a meeting, and the case can be referred back to the criminal side as it develops.

Two warnings in COP9 itself are worth reading twice. Section 7 says that after a rejection HMRC will start its own investigation, which may be a criminal one, and keeps the right to escalate a civil case at any time. It also says the rejection letter, any documents you provide and anything else you say can be used as evidence in court or tribunal proceedings. HMRC’s guidance adds that the signed letter can be used to show you intended to deliberately mislead HMRC.

What if you do not reply at all?

Silence counts as rejection. Section 8 of COP9 says that if HMRC has not heard from you within 60 days it treats this as your decision to reject and may begin a criminal investigation into the suspected fraud. HMRC’s guidance says it will assume you have chosen not to cooperate and will begin either a civil or criminal investigation. FCIM204060 says the case is referred back to the criminal side, and HMRC writes to tell you that the offer has expired and it is not bound by the contract.

The same applies to a failed acceptance. Section 8 lists sending an acceptance letter with no Outline Disclosure, and making an incomplete one, among the situations in which HMRC can open a criminal investigation. What a valid disclosure needs is covered on the COP9 outline disclosure.

Can you change your mind?

Not after rejecting. FCIM204010 says that if a person rejects and then seeks a contract, the original rejection stands, even if the 60 days have not expired. It adds that taking up the initial offer is the only way to be certain HMRC will not pursue a criminal investigation of the frauds disclosed.

The reverse change is also costly. Section 8 of COP9 says that if you accept, make an Outline Disclosure and later claim your behaviour was not deliberate, HMRC will, without a good reason, treat this as repudiation of the agreement, may open a criminal investigation and may use what you disclosed as evidence.

Does cooperating still help after a rejection?

Yes. FCIM204065 says a rejection does not necessarily mean a person will not cooperate, and that offers of cooperation, such as providing records and explanations voluntarily, reduce any future penalty and should be encouraged. The person does so without the CDF’s assurance. HMRC must not encourage a disclosure report, must make clear the cost of any report falls on the person, and will not ask for the four certificates that end a CDF case.

Refusing to engage is costlier. Section 9.3 of COP9 says HMRC can obtain information and documents using powers backed by financial penalties, up to an unlimited tax related penalty, can approach third parties, will raise assessments and pursue early collection, and that a person who does not cooperate fully loses the maximum penalty reduction. Section 10 says penalties can in some cases exceed 200% of the tax or duty lost before reductions. FCIM204070 tells investigators to request immediate access to business and private records and to use statutory powers if refused; see penalties for ignoring an information notice. The same paragraph reminds officers that it is for HMRC to prove a tax fraud has been committed.

How might the two routes compare?

Illustration only. Two recipients of COP9 letters each believe their records are correct.

• Recipient A takes specialist advice, signs the rejection letter within 40 days and encloses reconciled bank statements showing that the transfers HMRC may have seen were loans from family, with signed loan agreements. HMRC verifies them and writes to confirm it no longer suspects fraud.
• Recipient B puts the letter aside. After 60 days the offer lapses, the case is referred back for a criminal decision and, when it returns as a civil investigation, HMRC issues information notices to her and her bank. Her chance of contractual protection has gone, whatever the outcome.

What mistakes do people make?

• Rejecting because the offer feels like an accusation, when there has in fact been deliberate behaviour.
• Rejecting without evidence, when the explanation is the main thing HMRC will weigh.
• Assuming a rejection can be withdrawn within the 60 days.
• Missing the deadline and asking for an extension afterwards.
• Ignoring ongoing compliance; section 9.5 of COP9 says returns and payments must still be made on time, whichever option is chosen. Section 10.2 adds that HMRC can check later compliance through its Managing Serious Defaulters programme. The wider process is on COP9 fraud investigations.

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Related Accountapedia entries

• The formal disclosure report in a COP9 case
• The COP9 outline disclosure explained
• The temporary repatriation facility
• Accepting HMRC’s offer of a statutory review
• Does COP9 protect you from prosecution

Sources

• GOV.UK: Admitting tax fraud the contractual disclosure facility cdf
• GOV.UK: Code of practice 9
• GOV.UK: Manual page FCIM204030
• GOV.UK: Manual page FCIM204060
• GOV.UK: Manual page FCIM204010
• GOV.UK: Manual page FCIM204065
• GOV.UK: Manual page FCIM204070

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.