HMRC has announced extension of an alternative dispute resolution pilot that would allow smaller businesses to resolve tax disputes without having to resort to appealing to the tax tribunal. Aimed at small and medium-sized enterprises the pilot will be initially available only in North Wales and the North West of England to an expected tax assessment or an appealable decision. Under the scheme, HMRC will appoint a small team of trained ‘facilitators’, who would be completely independent of the dispute, to work with the business and try to reach an agreement to resolve the dispute. The scheme covers cases involving both VAT and direct tax disputes and will not affect the customer’s right to have the decision reviewed internally by HMRC or to appeal to the First-Tier Tax Tribunal.
Coming against the backdrop of HMRC’s much publicized ‘deals’ involving tax settlements with large businesses, one only hopes this scheme is a success and gets extended to the South East finally.
