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The Adjudicators’ Office is unknown to most taxpayers. The AO was set up in 1993 to offer a free, impartial complaints system for HMRC and the VO. Its primary function is to review how HMRC and the VO handled problems. Still, it may investigate whether HMRC utilised its discretionary powers to wipe off fines or tax payments. They can only rule when Mistakesthe officers use Mistakes, Delays, Poor guidance, Inappropriate employee behaviour or Discretions.
HMRC has a set method for dealing with complaints. The complainant must first contact HMRC or confirm a formal complaint. Then, complete an online form or call 0300 200 3300 to seek a first review (Tier 1). Tier 1 resolves as many complaints as practicable at first. If a taxpayer is not satisfied with the Tier 1 answer, they may ask for the complaint to be reviewed when it becomes a Tier 2 compliant. A Tier 2 complaint is HMRC’s last review and is handled by a separate complaint to guarantee a new review. 7% of complaints are raised at this stage. The procedure has no choice over whether a complaint should be advanced. It’s a taxpayer’s right to escalate. If the customer remains unsatisfied following HMRC’s final Tier 2 review, the matter may be moved to the AO within six months after HMRC’s Tier 2 review.
This ‘two stop’ strategy means a complaint is resolved before reaching the AO department. In number to the number of UK taxpayers, the AO handles few cases. In 2020/21, the Adjudicators Office received 1029 complaints and upheld 32%.
The AO doesn’t reconsider cases if a customer disagrees. If the complainant is still not satisfied following the Adjudicator’s review, they may escalate a complaint to the Parliamentary and Health Service Ombudsman, who can only handle complaints presented by an MP.
Adjudicators’ Office influence
AO is not a ‘judge and jury’ The AO has had the greatest success convincing HMRC to reconsider their working habits in some areas, resulting in employee retraining. The Adjudicator will propose how to fix any problems.
Compensation
The AO may award compensation if a claimant has lost money or suffered worry or distress owing to HMRC’s mistake or delay. Postage, phone, and professional fees may be reimbursed. Invoiced and paid professional fees are required. Payments for anxiety or anguish may be available if someone has suffered from a mistake. These payments are generally under £100. Paid complaints are also possible. Most cases don’t result in compensation, and when they do, it’s tiny. 2020/21 compensation was £33,682.