Alternative Dispute Resolution
When a dispute arises between HMRC and a taxpayer, HMRC offers a mediation service, known as Alternative Dispute Resolution (ADR).
This process involves a trained mediator, who is an HMRC employee, acting impartially between both parties to help resolve the dispute.
The main aim of ADR is to identify the specific facts and areas of disagreement, allowing both sides to focus on potential resolutions. While HMRC cannot force a taxpayer to participate in ADR, and they don’t agree that all disputes are suitable for resolution in this way, it can be a valuable opportunity to avoid escalating the matter to a tribunal when an agreement is possible.
Before the ADR meeting, which generally now takes place via video rather than in person, both parties must submit a written statement outlining their position and the key facts in dispute. During the meeting, the mediator will facilitate discussions to clarify misunderstandings and encourage a resolution. If an agreement is reached, a formal document is signed by all parties. If no resolution is found, the dispute can proceed through the usual HMRC process.
You can trust us to fight your corner, every step of the way.
Berwick Tax can guide you through the ADR process, ensuring you are well-prepared and effectively represented. Attending ADR without expert support can be risky, and our experience can make a significant difference in securing a satisfactory outcome. We will also consider, and explore, other options that my be available.