HMRC Disputes

Unresolved disagreements or disputes with HMRC cannot sometimes be avoided. When that happens, the Tax Tribunal is available to resolve those disputes.

Where a dispute over an HMRC decision, whatever that may be, cannot be resolved then the “formal” route for settlement becomes necessary.

Initially, you can ask for an internal “independent” review by HMRC, which will be conducted by a Reviewer who HMRC say is “independent” of the point at issue.

Reviews

A review is either offered by HMRC or requested by you and will be undertaken by someone independent of the dispute. However, as the Reviewer is also a member of HMRC, there is a particular need to know how to frame the review process to stand any chance of a successful Review outcome. There are time limits for both sides in the review process, but you would normally expect the review to be finalised within the normal 45 day period unless your case is complicated.

If you do not agree with the results of the review then you can take the dispute forward, normally, to the First-Tier (Tax) Tribunal.

The First-Tier (Tax) Tribunal

The First-Tier (Tax) Tribunal is a group wholly independent of HMRC and is used to settle disputes between taxpayer and HMRC that cannot be otherwise concluded. The Tribunal “Judges” are legally-qualified with tax understanding and the Judges are sometimes helped by tribunal members who are specialist non-legal but tax knowledgeable members of the panel.

Tribunal procedures are less complicated and more informal than Court procedures and are designed to speed resolution of disputes between HMRC and the public.

Preparations for and appearances in front of the Tribunal can be a daunting prospect for the uninitiated. Whilst you can take your dispute before the Tribunal personally, most advisors would recommend that you appoint an expert to help and to act on your behalf, both to prepare the matter and to take it in front of the Tribunal. With our extensive experience of Tribunal matters, we are ideally placed to secure a positive outcome.

Alternative Dispute Resolution (ADR)

Alternative Dispute Resolution (ADR) is a different way of dealing with a tax dispute with HMRC. It aims to help resolve disputes without the need for Tribunal action.

As a mediation process, we have found it highly useful in successfully resolving many disputes, saving the costs, uncertainty and stress of Tribunal-based litigation.

You can apply for ADR if dealings with HMRC have ground to a halt or are at an impasse.

ADR provides you with the option of having someone who has not been involved in your dispute to work with you, your advisor and the HMRC person dealing with your case.

The person leading the ADR acts as a neutral third party mediator. They do not take over the dispute, but they will work with you and your advisor to explore ways of resolving the dispute through meetings and telephone conversations. They help focus on the areas that need to be resolved and, if needed, help re-establish dialogue.

In some cases you can agree with HMRC to jointly pay for a professional independent mediator.

Having conducted very many successful ADR cases, we are happy to help lead discussions and dialogue with ADR mediators, whether from within HMRC or outside.