The Alternative Dispute Resolution (ADR), which is being piloted in the North West and North Wales, uses independent HMRC facilitators to resolve disputes between HMRC and customers during a compliance check but before a decision or assessment has been made.
“ADR will help SMEs resolve disputes without having to go to a tribunal – saving them both time and money,” said Jim Stevenson, assistant director for local compliance at HMRC. “It is a good opportunity for HMRC to work together with our customers to potentially resolve disputes much earlier than at present.”
Cases for businesses potentially suitable for this pilot include facts that are capable of further clarification and disputes that might benefit from obtaining more suitable evidence. ADR does not affect existing processes or review and appeal rights, and covers both VAT and direct taxes.