Alternative Dispute Resolution
The Alternative Dispute Resolution (ADR) process uses independent HMRC facilitators to help resolve disputes between HMRC and taxpayers. The use of the ADR aims to find a fair and quick outcome for both parties, helping to reduce costs and avoid a Tribunal case. The ADR facilitators will not have been involved in the initial dispute between HMRC and taxpayers. The facilitator works with both the taxpayer and the HMRC case owner to try to broker an agreement between them.
The ADR is available to small businesses and individual taxpayers where a tax issue is in dispute, whether or not an appealable tax decision or assessment has been made by HMRC. The ADR process is available to all taxpayers nationwide whose tax affairs are handled by HMRC’s Local Compliance SME and Local Compliance Individuals and Public Bodies business units.
Under the scheme, ADR facilitators and managers can accept applications but only a special ADR Panel that consists of eight experienced HMRC managers and dispute resolution specialists has the power to reject applications. An application to use the ADR can be made by completing an online form and HMRC will issue a response to the application within 30 days.