Skip to content 
Are you in a tax dispute with HMRC? Find out how their Alternative Dispute Resolution (ADR) service can help you. This free service uses a trained facilitator to resolve disputes more quickly and cheaply than going to a Tribunal. Is this option right for you?
What Is ADR and How Does It Work?
The ADR process introduces an independent facilitator (an HMRC officer from a different team) to mediate between you and HMRC. Most meetings happen via video or phone, though you can request in-person sessions. Either party can suggest ADR, and once applied, cases are reviewed for suitability within 30 days.
What Disputes Qualify for ADR?
Not all disputes are eligible. ADR excludes:
- Debt recovery or late payment penalties
- Tax credits or high-income child benefit charges
- Criminal cases or legal disagreements
If ADR doesn’t resolve your case, you can still pursue an internal review or appeal to a Tribunal.
7 Powerful Benefits of Using ADR
- Save Money: Avoid expensive Tribunal fees and legal costs.
- Resolve Faster: Most cases wrap up within 4 months, compared to lengthy formal processes.
- Clarity & Structure: A defined timetable eliminates endless back-and-forth communication.
- Stress Reduction: A neutral third party helps ease tensions between both sides.
- Accessibility: Applications are easy to file online at any stage of your dispute.
- Dedicated Support: A helpline offers guidance to determine if ADR is right for your case.
- Flexibility: Mediation provides a collaborative approach to finding common ground.
Key Considerations Before Applying
Before diving into ADR, make sure you understand the key requirements and processes:
- Establish the Facts First: ADR works best when all the details of the case are clear and both parties are at an impasse.
- Be Ready to Commit: Timely responses are essential. You’ll need to provide all requested information within 15 days, and HMRC has a similar timeline for approvals after mediation.
- Understand the Limits: ADR doesn’t help with legal disputes or debt recovery. Before you proceed, check your eligibility by calling the dedicated helpline.
How to Apply
Applying ADR is simple and can be done online. If you’re unsure whether your case fits, contact the ADR helpline for tailored advice. Once submitted, HMRC will evaluate your case within 30 days to determine suitability.
Common Myths About ADR
Let’s debunk aLet’smisconceptions:
- Myth 1: ADR is biased because the facilitator is from HMRC.
- Truth: Facilitators are neutral, from separate HMRC teams with no prior case involvement.
- Myth 2: ADR is just as slow as other HMRC processes.
- Truth: With a clear timetable and a four-month resolution goal, ADR is significantly faster.
- Myth 3: If ADR fails, you lose all other options.
- Truth: You can still escalate to a Tribunal or request an internal review.
Is ADR the Right Choice for You?
If your tax dispute involves misunderstandings or factual disagreements, ADR could be the perfect fit. However, for cases involving legal points or criminal investigations, it’s better to seek other routes. The ADR helpline is a great first step to confirming your eligibility.
Take Action Now: Don’t let a dispute stress you out. Alternative Dispute Resolution (ADR) offers a quick, affordable, and easy way to settle your issue. Whether you’re a business owner, individual taxpayer, or corporate entity, we can help you work with HMRC to reach an agreement. If you want to resolve your dispute fast, call our Tax Advisors to discuss your case.