Taxman launches mediation pilot

HER Majesty’s Revenue & Customs is to pilot a trial scheme to settle tax disputes by mediation.

The scheme is being launched in the North West and North Wales among small and medium-sized enterprises (SMEs) following a successful trial with 60 companies earlier this year.

It will offer SMEs who dispute tax debts that arise during compliance checks the opportunity to use  alternative dispute resolution (ADR) methods rather than facing a tax tribunal.

During the trial, 60% of firms settled dispute with HMRC before they reached tribunal stage.

Jim Stevenson, an assistant director at HMRC’s local compliance unit, said: “ADR will help SMEs resolve disputes without having to go to a tribunal – saving them both time and money. It is a good opportunity for HMRC to work together with our customers to potentially resolve disputes much earlier than at present.

“The facilitators are HMRC members of staff who have been trained in ADR techniques and have not been involved in the dispute.

“We have found that often there are communication problems. So the HMRC facilitator will help all parties reach a shared and full understanding of the disputed facts and arguments.

“They will also ensure there is good communication, and help explain what each side is trying to say to the other. The aim is to resolve the dispute or, if not, as many issues as possible.”