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Tax disputes
Tax disputes happen when HMRC and a taxpayer disagree about one or more entries on a tax return. They can arise over facts, the law or both.
Resolving tax disputes
Your options for resolving tax disputes depend on the nature of the dispute, the amount of tax at stake and your current situation with HMRC.
HMRC review
Most disputes are settled by reaching an agreement with HMRC. If no agreement is reached, you have the right to ask HMRC to carry out an independent review of its decision. This HMRC review is undertaken by an HMRC officer who has not previously been involved in the case.
An HMRC review can result in the original decision being upheld, varied or set aside. If the decision is set aside, that is the end of the matter. If it is upheld or varied, you will have to pay the tax due or pursue further action.
HMRC ADR: Alternative dispute resolution mediation
Alternative dispute resolution mediation is a process for resolving tax disputes with HMRC without going to court.
ADR can be applied for or offered by HMRC. When a case is accepted for ADR, a mediator is appointed to manage what is usually a one-day mediation session between you and HMRC. The mediator is normally a trained HMRC officer not previously involved in the case. In some cases, it may be possible to have a specialist third-party mediator, the cost of which can be shared with HMRC.
In most cases, ADR is cheaper and far quicker than litigation. About 80% of ADR cases are fully or partially resolved through the process, according to HMRC.1
How S&W can help resolve your tax dispute
Our experts can help at all stages of your dispute to resolve it as quickly as possible.
We can guide you through ADR. First, we’ll review your dispute to see if it’s suitable for ADR. If it is, we will handle the whole ADR process with HMRC, from initial application to any formal agreement.
If ADR is unsuitable or unsuccessful, our team has extensive experience of preparing cases for tribunal. We can liaise with the tax counsel on your behalf, help prepare the case evidence, including document bundles and potential witnesses, and guide you through the full litigation process.
Our team regularly provides tax-expert witness services and delivers court-compliant reports for claimants and defendants or on a joint instruction basis. Our experts have experience giving evidence in court and participating in mediation and arbitration proceedings. They have provided services in a wide range of cases:
- Professional negligence cases (particularly in respect of failed tax schemes)
- Tax tribunal proceedings
- Commercial disputes involving tax
- HMRC disputes
Contact us for more information on how we can help resolve your tax dispute.
Frequently asked questions about tax disputes
What should I do if I disagree with HMRC?
You need to write to HMRC to say that you want to appeal their decision and why. This appeal should be made within 30 days from the date of HMRC’s decision letter. The decision letter should outline your rights if you disagree with a decision, which could include making an appeal.
Can I raise a complaint against HMRC?
You can complain to HMRC if you are unhappy with their service. The complaint process is different to the one for disagreeing with a tax decision. You can make a complaint online, by phone or by post.
What is the HMRC code of governance for resolving tax disputes?
The code details how HMRC handles disputes involving multiple taxpayers as well as specialist areas, such as international tax and large corporate groups who have multiple disputes. The code of governance also sets out the remit of HMRC’s internal Tax Dispute Resolution Board (TDRB).