In 2013, following a trial, the HMRC Alternative Dispute Resolution service was extended to Small and Medium Enterprise businesses.

HM Revenue & Customs (HMRC) extended its Alternative Dispute Resolution (ADR)  to Small and Medium Enterprise (SME) customers as part of a rollout of the service to all taxes . ADR is an alternative way of resolving tax disputes relating to tax enquiries.

Under ADR an independent facilitator, who has not been involved in the dispute before, will work with both the taxpayer and the HMRC to try to broker an agreement between the parties. ADR is proven to be a cost-effective way of resolving legal disputes.

ADR covers both VAT and direct taxes disputes. Entering into the ADR process will not affect a taxpayer's existing review and appeal rights.

HMRC figures show that in 2016-17 79% cases were resolved using ADR and 82% in 2017-18.

You can apply for ADR online here. You will hear back from HMRC within 30 days and they aim for the whole process to take no more than 4 months.


Enjoying the Practical Tax content on 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad