HMRC launches Alternative Dispute Resolution service

A way for small businesses and individuals to resolve disputes with HM Revenue and Customs (HMRC) is being launched today after a successful trial.

Alternative Dispute Resolution (ADR) uses independent HMRC facilitators to resolve disputes between HMRC and customers during a compliance check. It aims to find a fair and quick outcome for both parties, helping to reduce their costs and avoid a tribunal.

It follows a two-year trial and extensive consultation with professional bodies and the voluntary sector.

Richard Summersgill, HMRC Director of Local Compliance, said: “I am delighted to announce that Alternative Dispute Resolution for small businesses and individuals has entered mainstream HMRC business.

“We know that taxpayers like the speed and flexibility of Alternative Dispute Resolution, and evidence has shown that by using the simple service, many disputes can be significantly shortened and resolved without recourse to Tribunal.”

ADR is available to small business and individual taxpayers where a tax issue is in dispute, whether or not an appealable tax decision or assessment has been made by HMRC.