Alternative Dispute Resolution

Alternative Dispute Resolution (ADR) HMRC

Since late 2013 HMRC has recognised Alternative Dispute Resolution (ADR), sometimes referred to as Collaborative Dispute Resolution (CDR), as a mediation process to settle tax disputes with individuals. 

If you have received a letter from HMRC you should seek professional advice. We provide tax investigation services and can assist through the process of Alternative Dispute Resolution.  

If a taxpayer disagrees with a point of principle from HMRC, then they have the right to apply for Alternative Dispute Resolution (ADR). HMRC do not have to accept an application but generally applications are successful unless a Tax Tribunal Hearing has already been set up for the matter.

Our experienced team can assist throughout the process of ADR.

HMRC Dispute - Call 0113 387 5670 

Alternative Dispute Resolution is structured by meetings held between the individual and HMRC on a “without prejudice” basis. The parties listen to each other’s points of view and then on the strength of their cases they must decide whether they are willing to concede a principle in exchange for another principle being settled in their favour.

The principles of Alternative Dispute Resolution?

The rules of mediation are strict in terms of how HMRC are allowed to bargain. The main principle being that they are not allowed to “split the difference” in terms of using this way to settle a dispute, i.e. HMRC can concede a point of principle if they believe their position is weak but they cannot concede part of the tax bill that is emanating from a point of principle.

Either party can walk away from the ADR process at any point if a deal is not struck. What is said or agreed at the meetings will have no bearing on the case if it goes to Tribunal.
Alternative Dispute Mediation, therefore, can often be seen as a good way to achieve a settlement if there are a number of issues on the table, or if assumptions around establishing facts about the individual’s tax affairs need to be made.

For tax investigation advice or to discuss your circumstances with trusted and experienced professionals in complete confidence please call us on 0113 387 5670 or fill out an Enquiry Form.

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To hear more about our Tax Investigation Services or to discuss a potential case with a member of our team, call us on 0113 387 5670.

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