Alternative dispute resolution provides a structured way of engaging with HMRC to resolve or narrow disputes without a formal hearing. It should not be viewed as a separate track from litigation, but a tool that can be deployed at different stages of a dispute to support overall strategy.

ADR is particularly effective where HMRC’s position is not yet fully articulated and needs to be tested. The process can bring underlying assumptions and reasoning into the open, helping to clarify the real points of disagreement and how the dispute is likely to be determined.

ADR can also be used where positions have become entrenched. Clients may have been engaging with HMRC over an extended period, often with input from multiple advisers. It provides an opportunity to revisit issues in a more structured environment, identify areas of agreement and narrow the scope of matters requiring determination by the Tribunal.

Our approach

ADR is most effective when used selectively and with a clear objective. We assess at the outset whether the process is likely to add value, taking into account the nature of the dispute, HMRC’s position and the strength of the available evidence.

Where ADR is appropriate, we prepare thoroughly. This includes defining the issues, identifying which matters are capable of resolution and ensuring that the client’s position is clearly articulated and supported by evidence.

We use ADR to:

• test HMRC’s understanding of the facts and law;
• bring HMRC’s position into focus where it is not fully developed;
• narrow the scope of disputes; and
• explore structured routes to resolution.

ADR can also enable agreement on practical matters that extend beyond the scope of a Tribunal decision, including how a position will be applied in practice, the basis of computations and the treatment of issues going forward.

ADR is often a cost‑effective option, particularly where it can narrow issues or avoid the need for a full hearing. It can also support a more collaborative approach where clients wish to resolve a dispute without damaging an ongoing working relationship with HMRC.

When we are instructed

We are typically instructed where:

• HMRC’s position is not fully formulated and requires clarification;
• positions have become entrenched and progress has stalled;
• HMRC is not acting in accordance with guidance or policy;
• there is a need to narrow issues ahead of litigation;
• clients wish to adopt a collaborative approach without conceding their position; or
• a cost‑effective route to resolution is being explored.

How we help

We assist clients with:

• assessing whether ADR is appropriate in the context of the dispute;
• defining scope and objectives for the ADR process;
• preparing submissions and supporting evidence;
• representing clients in ADR meetings and discussions;
• managing engagement with HMRC alongside appeal processes; and
• using ADR outcomes to inform litigation and settlement strategy.

Contact us

If you are considering alternative dispute resolution, or would like to review your position and approach, we can assist in determining how ADR may be used as part of your dispute strategy. Please contact us to discuss.