HMRC extends Alternative Dispute Resolution pilot in the North West of England and Wales

HM Revenue & Customs (HMRC) has been piloting the use of Alternative Dispute Resolution (ADR) techniques across the UK to assist in resolving disputes with small and medium sized (SME) businesses. An initial pilot was run last year, giving SMEs the opportunity to resolve disputes with HMRC with the help of a facilitator. HMRC are now extending this pilot in the North West of England and North Wales until July 2012.

How ADR can help

• In our experience, involving HMRC's ADR team can have a number benefits including:
• Clarification of HMRC's technical position
• Speeding up the enquiry process and, in particular, the process of gathering evidence
• Encouraging HMRC to consider whether a settlement can be agreed without the need for litigation.  

When to use ADR

Any taxpayer can engage with HMRC's ADR specialists under the pilot where a tax issue is in dispute, as long as the matter is referred to the ADR team before an appealable decision is made. This is in contrast to last year's pilot where HMRC selected the majority of cases.

The pilot may be a useful mechanism to make progress on an enquiry or investigation where you feel that matters have reached an impasse.

PwC's Tax Dispute Resolution team have extensive knowledge of HMRC's approach to ADR and mediation: a number of our team members are accredited mediators and we've assisted HMRC in delivering internal training on ADR. We'd be more than happy to discuss, without obligation, whether the pilot might assist your clients in resolving disputes with HMRC.