HMRC policy on alternative dispute resolution

By Tolley in association with Philip Rutherford
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The following Owner-Managed Businesses guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • HMRC policy on alternative dispute resolution
  • Introduction
  • Background
  • How to request ADR
  • Litigation and settlement strategy
  • Further guidance on ADR
  • 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.

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

HMRC tested ADR in a limited pilot scheme which ran for two years following its launch on 7 February 2011. The pilot looked specifically at the small and medium enterprises (SME) sector, and HMRC stated that the aim of the pilot was to improve its understanding of SME tax disputes.

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