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HMRC are extending the range of their alternative dispute resolution (ADR) process, currently in a trial phase, which aims to provide small and medium enterprises (SMEs) with an additional route through which to settle tax disputes in compliance checks.
The pilot scheme was launched on a small scale last year for selected businesses nationwide, before being offered last month to firms throughout north Wales and northwest England. Applications will now be accepted from London, southwest England and south Wales.
ADR is currently available to SMEs involved in a dispute about tax issues, before an appealable decision or assessment has been made by the taxman. It covers disagreements over VAT and direct taxes, and does not affect the taxpayer’s existing review and appeal rights.
An independent person from within HMRC, who was not involved in the dispute previously, works with the business and the Revenue case-owner to try to broker an agreement between the two parties.
