Fraud Investigations

At Axis Solicitors, our highly skilled solicitors specialise in advising individuals and businesses under investigation for suspected tax-related misconduct. We provide strategic guidance during every stage of the process—from pre-investigation reviews to formal HMRC proceedings. We also help clients trace, preserve, and protect assets in matters where HMRC initiates enforcement or asset recovery actions.

Our tax investigation solicitors are experienced in navigating high-stakes, technically complex cases that often cross into international finance, accounting compliance, and structured tax planning. Whether you’re being questioned about underreported income, irregular deductions, or the use of a tax mitigation scheme, we work to protect your legal rights and secure the best possible outcome.

HMRC views fraudulent tax arrangements—whether intentional or misunderstood—as a significant risk to public revenue. As a result, the government invests heavily in investigation and enforcement. These cases often involve years of records, extensive correspondence, and complex tax law.

We represent individuals, business owners, directors, and professionals facing allegations of tax misrepresentation, including:

• Non-disclosure of overseas income
  
  
• Misuse of tax avoidance schemes
  
  
• Misstated VAT or PAYE obligations
  
  
• Errors in corporate filings or personal self-assessments
  
  

Our team will help you respond appropriately to HMRC, correct errors if necessary, and defend you against enforcement measures—minimising reputational damage and financial impact.

HMRC tax fraud investigations can affect every aspect of your personal and professional life. These cases often result in:

• Backdated assessments and interest
  
  
• Financial penalties and surcharges
  
  
• Public or regulatory scrutiny
  
  
• Asset freezing or seizure proceedings
  
  

Our specialist solicitors provide front-line representation and act as a buffer between you and HMRC. We liaise with investigating officers, respond to formal demands, and help you prepare for interviews, disclosures, or settlement discussions.

HMRC investigations may be led by:

• HM Revenue & Customs (HMRC) – Fraud Investigation Service (FIS)
  
  
• Serious Fraud Office (SFO) – in high-value or international cases
  
  
• Crown Prosecution Service (CPS) – for enforcement and court proceedings
  
  
• City of London Police – ECU – in joint financial operations
  
  
• Financial Conduct Authority (FCA) – where regulatory and tax issues overlap
  
  

We handle both civil and more severe investigations and ensure your rights and interests are protected throughout.

In tax-related contexts, the Fraud Act 2006 is frequently applied when HMRC believes a taxpayer has:

• Provided false information in returns or correspondence
  
  
• Failed to disclose relevant details that affect tax liability
  
  
• Abused a position of trust—such as within a business or finance function
  
  

Supporting charges may involve the use of documentation, third-party services, or systems designed to reduce declared income or inflate deductions.

Our legal team can help you challenge the application of the Act, explain discrepancies, or demonstrate that actions were based on reasonable belief or professional advice.

In serious tax fraud cases, legal proceedings may lead to civil penalties, injunctions, or disqualification from holding certain roles in regulated industries. The maximum sentence under the Fraud Act 2006 is 10 years where it applies, but not all tax matters result in prosecution.

The severity of outcome depends on:

• The amount of tax at issue
  
  
• Whether disclosure was voluntary
  
  
• The taxpayer’s cooperation
  
  
• HMRC’s assessment of intent or negligence
  
  

We work to limit penalties and prevent matters from escalating to enforcement or prosecution wherever possible.

In some tax investigations, HMRC may allege that assets have been obtained through improper means and seek recovery under POCA. This can involve freezing orders, property seizure, or account restraints.

Our solicitors are highly experienced in challenging these measures. We scrutinise HMRC’s valuation and “benefit” calculations, argue against unfair inferences, and defend your right to retain lawfully acquired assets.

Businesses and individuals impacted by internal financial misconduct may face tax consequences. If a rogue employee or third party has manipulated financial data, the tax liabilities fall on the organisation.

We support clients in:

• Conducting internal investigations
  
  
• Tracing lost funds and recovering assets
  
  
• Disclosing to HMRC to prevent further penalties
  
  
• Seeking court orders to freeze assets or obtain evidence
  
  

This is especially important where tax filings have been compromised by internal misrepresentation.

We provide robust legal defence for clients facing HMRC action for suspected tax fraud. Whether the dispute involves self-assessment, corporate taxes, PAYE, or VAT, we handle:

• HMRC interviews under caution (PACE)
  
  
• Voluntary disclosures under COP8 or COP9
  
  
• Settlement negotiations and litigation
  
  
• PR and reputational risk management
  
  

We’re particularly experienced in handling dual-track cases—where civil and financial enforcement proceed in parallel. Our goal is to reduce liabilities, protect your assets, and resolve disputes with minimal disruption.

Serious High-Value Fraud

We regularly represent clients in high-value tax disputes involving six- or seven-figure liabilities. These may relate to offshore investments, dividend planning, or complex accounting strategies. We take a forensic approach to understanding the facts, the financials, and the legal framework.

Investment Fraud

Clients involved in investment structures later flagged by HMRC may be accused of benefiting from misrepresentations. We defend against these allegations and support with appeals, interest challenges, and negotiated repayments.

Tax Evasion

Whether HMRC alleges understatement, concealment, or incorrect declarations, we defend clients who are either under suspicion or formally investigated. We provide guidance throughout COP9, prepare detailed responses, and negotiate settlements where appropriate.

We also advise clients facing enforcement for issues that often overlap with tax investigations, such as:

• Mortgage Fraud: When HMRC questions source of funds or misstatements in property transactions
  
  
• Insurance Fraud: Cross-referenced against undeclared income
  
  
• Counterfeiting / Forgery: In cases involving fabricated documents submitted to HMRC
  
  
• VAT Investigations: Especially in the context of MTIC or carousel schemes
  
  

Money Laundering: Where HMRC suspects tax liabilities linked to unreported income streams