Contractor UK has reported that a scheme designed to help
small companies and individuals at loggerheads with the taxman has been
upgraded from a trial to standard practise, HM Revenue & Customs said on 3rd
September 2013.
Following the two-year trial, HMRC says it has now created the
Alternative Dispute Resolution Service a new national team to help resolve tax
disputes using the scheme.
Since last June,
businesses and individuals in dispute with HMRC have been able to use the ADR
to request the involvement of a ‘facilitator’ – an HMRC official unrelated to
the dispute - to help both parties understand each other and work towards an
agreement.
“Our customers have told us that they like the speed and
flexibility of ADR,” Richard Summersgill, HMRC’s director of local compliance,
said yesterday. “Evidence has shown that by using the simple ADR service many
disputes can be significantly shortened and resolved without recourse to
Tribunal.”
The scheme’s expansion was welcomed by The Association of
Taxation Technicians, whose members provide accountancy services to business
owners, but not unreservedly.
“We will be following developments very closely to ensure
that ADR lives up to expectations,” said ATT’s president Yvette Nunn.
Angelina Morlacci of SAIL Business Solutions noted that many
disputes with HMRC were down to poorly communicated advice and bad timing. “So
many clients have never been told the importance of timely submissions for tax when
dealing with HMRC. This is true for clients in work, but equally so when a client’s
contract ends. There is still a reporting and administrative burden to fulfil.
Finding a good accountancy firm is about getting the basics right, and
ultimately having complete peace of mind to avoid these disputes.”
