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The pilot phase of HMRC’s alternative dispute resolution (ADR) service has been extended for the third time, and is now available to all the UK's small and medium-sized enterprises as well as individual taxpayers.
It provides a different way of settling disagreements over tax matters by involving an independent facilitator to mediate discussions between the two parties.
‘This is an initiative that all taxpayers and their advisers should be supporting actively,’ remarked Andrew Gotch of the Chartered Institute of Taxation (CIOT).
‘The possibility of faster resolution at a considerable saving as against the costs of an appeal offers real advantages to everyone.’
Mr Gotch, who chairs the CIOT's owner-managed businesses sub-committee, called for greater involvement in ADR.
‘Response so far has been poor,’ he said. ‘Only 37 cases have been put forward, and HMRC have resources to deal with up to 250.
‘This project needs active buy-in and support from the professional community. If the statistical basis isn’t there to justify its continuance it could be lost to all except large and complex cases. That would be a tragedy, because the vast majority of ordinary taxpayers, in business or not, have so much to gain from this humane and sensible initiative.
‘This is no time for a cynicism or reluctance; professionals need to engage.’
The deadline for registering cases under the ADR pilot is 31 July.
