Why use ADR to settle a dispute with HMRC?
Entering into ADR mediation will not affect a taxpayers' existing review or appeal rights, but provides the opportunity for taxpayers and HMRC to have a full and frank discussion and explore the potential for a settlement without resorting to litigation. ADR is also less formal than a Tribunal hearing and is far quicker and more cost-effective.
According to HMRC’s annual report, mediation has a high success rate, with 88% of mediations arriving at an agreement. At Buzzacott, our own in-house CEDR (The Centre for Effective Dispute Resolution) accredited mediator, Barbara Bento, ensures all parties are encouraged to reach an agreement where possible.
In cases where mediation does not resolve the matter, by the end of the process, the taxpayer and their agent will still have gained greater clarity on the outstanding issues. This will put them in a good position to decide what steps to take next, and the likelihood of success should the case proceed to Tribunal.