Commentary

A5.713 Alternative dispute resolution

Administration and compliance

A5.713 Alternative dispute resolution

A5.713 Alternative dispute resolution

Alternative dispute resolution (ADR) has been available as a method of settling tax disputes between taxpayers and HMRC since 2013. ADR is widely used in the commercial world as a cheaper, more time efficient and effective way of handling issues and disagreements than litigation. There are a number of different formats which ADR can take, including mediation, arbitrations and third party negotiations. In tax disputes, ADR takes the form of mediation.

When ADR can and cannot be used

The GOV.UK website ('What ADR can be used for') states that the following types of dispute cannot be dealt with under the ADR process:

  1.  

    •     complaints and disputes about HMRC delays in using information or giving misleading advice

  2.  

    •     debt recovery or payment issues

  3.  

    •     tax credits

  4.  

    •     disputes over default surcharges

  5.  

    •     automatic late payment or late filing penalties

  6.  

    •     PAYE coding notices

  7.  

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