Over 60% of tax disputes take more than one year to resolve

Three in five businesses (61%) are involved in a tax dispute with HMRC which has lasted more than one year.

The figures which come from a BDO survey of more than 500 mid-sized businesses underline the difficulty that many businesses have in navigating the UK’s complex tax system. The delays also reflect concerns around HMRC’s resources and its ability to respond to and resolve taxpayer queries swiftly.

Businesses embarking on formal legal disputes with HMRC also face a long wait for resolution. HMRC’s latest annual report shows there were 39 500 tax tribunal appeals in progress on 31 March 2023 an 8% rise on the previous year. For large businesses subject to an HMRC enquiry the average length of time taken to settle an enquiry - including those in litigation - is three years.

Although 92% of those surveyed by BDO who were in...