Use alternative dispute resolution to settle a tax dispute
How to apply for alternative dispute resolution and when you can use it to resolve a tax disagreement with HMRC.
Anyone can apply for alternative dispute resolution to help resolve a dispute with HMRC, or to get more information about issues that need to be taken for a legal ruling.
This includes:
- individuals trying to resolve personal tax issues
- organisations trying to resolve business tax issues
- agents representing personal or business tax clients
How alternative dispute resolution works
An HMRC mediator who has been trained in mediation skills and techniques will work with you and the HMRC officer dealing with your case.
They will help you both explore ways to resolve your dispute, including helping you:
- focus on the areas that need to be resolved
- re-establish communications, if needed
They will not take over responsibility for the dispute.
What alternative dispute resolution can be used for
Alternative dispute resolution can be used when you have a dispute with HMRC, including:
- when you are unable to reach an agreement with HMRC
- during a compliance check, where progress in the enquiry has stalled
- at the end of a compliance check, when a decision has been made that you can appeal against
Alternative dispute resolution does not affect your right to appeal, or to ask for a statutory review.
Each application is considered on a case by case basis. Alternative dispute resolution is not a statutory process and HMRC reserves the right to reject applications that we do not consider appropriate for alternative dispute resolution.
Alternative dispute resolution can be used when:
- communications have broken down between you and HMRC
- there are disputes about the facts
- a dispute appears to be the result of a misunderstanding
- you want to know why HMRC has not agreed evidence you have given them, and why they want to use other evidence
- you’re not clear what information HMRC has used, and you think they may have made wrong assumptions
- you want HMRC to explain why they need more information from you
You cannot use alternative dispute resolution for:
- complaints and disputes about HMRC delays in using information or giving you misleading advice — find out how to complain about HMRC
- cases that HMRC’s criminal investigators are dealing with
- cases the First Tier Tax Tribunal have categorised as ‘paper’ or ‘basic’
- debt recovery or payment issues — find out what to do if you cannot pay your tax bill on time
- disputes about tax credits — find out how to appeal or complain about tax credits
- disputes over default surcharges
- automatic late payment or late filing penalties
- PAYE coding notices
- Extra-Statutory Concessions
- pension liberation schemes
- High Income Child Benefit Charges
- disputes about the National Minimum Wage
- accelerated payments and follower notices
- civil evasion penalties
- forfeiture
Read the alternative dispute resolution - CC/FS21 factsheet if you need more information to decide if alternative dispute resolution is right for you.
You may still be able to disagree with a tax decision if you cannot use alternative dispute resolution.
When you can apply
You can apply for alternative dispute resolution when you have a dispute with HMRC.
If HMRC have opened an enquiry into your tax affairs, you can apply at any stage of the enquiry and at any stage of the tribunal proceedings.
If you are applying after HMRC has made a decision, read the sections that follow.
Direct tax disputes after HMRC has made a decision
Direct taxes include:
- Income Tax
- Corporation Tax
- Inheritance Tax
You can apply for alternative dispute resolution when HMRC has made a decision about a direct tax issue you have appealed against and have taken one of the following actions:
- accepted the appeal, but have not offered you a statutory review
- offered you a statutory review that you have accepted — you must wait for the review to end, appeal to the tribunal and have received an acknowledgement letter before applying
- offered you a statutory review that you have not accepted — you must appeal to the tribunal first, and have received an acknowledgement letter before applying
Indirect tax disputes after HMRC has made a decision
Indirect taxes include:
- VAT
- excise duty
- Customs Duty
You can apply for alternative dispute resolution when HMRC has made a decision about an indirect tax issue and you have either:
- accepted our offer of a review — you must wait for the review to end, appeal to the tribunal and have received an acknowledgement letter before applying
- not accepted our offer of a review — you must appeal to the tribunal first, and have received an acknowledgement letter before applying
What you’ll need
You will need to provide us with some information about your dispute. It may be useful to have any correspondence that you have received from HMRC with you when you complete the application form.
You will also need to agree to some principles, including sharing all information promptly and being available for meetings to resolve the dispute.
If you are an agent, you’ll also need to confirm that your client agrees to these principles.
How to apply
Online
Use the online form to apply for alternative dispute resolution.
If you have an agent or tax adviser, they can apply for you.
Phone
If you do not have access to the internet and need additional help, contact us on 03000 538177.
This is a 24-hour answerphone service. You will be asked to tell us your:
- name
- phone number
A mediator will contact you within 30 days to discuss your application.
What happens next
HMRC will let you know within 30 days of receiving your application if alternative dispute resolution is right for resolving your dispute.
Principles you’ll need to follow
The online alternative dispute resolution application form details a number of principles regarding all participants’ responsibilities. By submitting your application, you are confirming that you will commit to these principles and will fully participate in the alternative dispute resolution process.
Check factsheet CC/FS21 for alternative dispute resolution principles. They include you:
- agreeing to provide more information if asked
- responding to any requests within 15 working days
- committing to attending a meeting by telephone, video or face to face, within 90 days from when your application is accepted
If these terms are broken at any time, HMRC can remove your dispute from the alternative dispute resolution process.
If your application is rejected
All alternative dispute resolution applications that are recommended for rejection must follow strict governance procedures. Any decision to reject an application must be agreed by a panel made up of independent tax professionals.
We’ll tell you if we decide your case is not suitable for alternative dispute resolution.
If your dispute cannot be resolved using alternative dispute resolution
If you’re unable to reach an agreement at the end of the alternative dispute resolution process your HMRC mediator will tell you what you can do next.
Updates to this page
Last updated 24 January 2024 + show all updates
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Information has been added about how to contact HMRC by phone.
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Large businesses no longer need to contact their Customer Compliance Manager or caseworker before applying for alternative dispute resolution (ADR). If you have made an appeal, you should apply for ADR after receiving an acknowledgement letter from the Tribunal.
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Guidance about what Alternative Dispute Resolution can be used for has been updated.
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Information about applying for an ADR after HMRC has made a decision has been added to the 'when to apply' section.
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Information about the principles and responsibilities that you must agree to when applying for Alternative Dispute Resolution (ADR) has been added.
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You can now apply for ADR at any stage of an enquiry and at any stage of tribunal proceedings.
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What you'll need section added and what happens next section updated to reflect change in process.
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Types of cases that can be accepted for Alternative Dispute Resolution has been updated.
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Contact details added to the How to ask for ADR section.
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First published.