HMRC policy on alternative dispute resolution

By Tolley
HMRC policy on alternative dispute resolution

The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:

  • HMRC policy on alternative dispute resolution
  • Introduction
  • How to request ADR
  • Litigation and settlement strategy
  • Other issues

Introduction

Alternative dispute resolution (ADR) is widely used in the commercial world as a cheaper, more time efficient and effective way of dealing with issues and disagreements than formal litigation. ADR can come in a number of different formats including mediation, arbitrations and third party negotiation.

Historically, HMRC disputes tended to be resolved either by protracted correspondence and negotiation, or at the Tribunal. Enquiries were often time consuming and costly affairs with neither party achieving a satisfactory outcome.

Following a successful trial in 2013, HMRC made ADR available to individuals and small and medium enterprises (SME). ADR was later extended to large and complex cases. Note that the paragraph 8 of the Practice direction ― pre-action conduct and protocols  that applies to the First-tier Tribunal

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