ADRG02900 | Types of disputes not suitable for ADR

ADR is not suitable for the following.

1. Where a matter is under criminal investigation.

2. Where a case is stood behind a ‘lead case’.

3. Where a matter is a complaint, although we may consider applications where there is an underlying dispute and ADR would add value.

4. Where it’s unlikely that ADR will resolve a matter more efficiently and cost effectively than other means. For example, Self-assessment registration, PAYE coding notices, automatic penalties (for example, for late filing and late payment, or tribunal appeals allocated to the ‘basic’ or default ‘paper’ category). For these matters, you may be able to challenge HMRC’s decision. If you’re unhappy with the service you have received from HMRC, you can also complain. Further details on how you can do this can be found online. Go to GOV.UK and search ‘disagree with a tax decision’ or ‘complain about HMRC’.

5. Where ADR will not add value and or progress a case towards resolution. For example, where there is an unwillingness to resolve the dispute using ADR.

6. Where there’s a benefit of litigation to clarify a point of legal interpretation or where a risk involves multiple customers. However, it may help progress customer specific issues. For example, to gather information to ensure the full facts and, or technical positions are understood.

If both parties are looking to resolve the dispute, ADR can still add value for cases where the legal position on the underlying tax dispute is well established. This is especially so for customers who are unrepresented or who need extra support and feel they haven’t been listened to. ADR may offer the opportunity for both parties to clarify the situation and work together towards resolution.