Improving HMRC’s approach to dispute resolution – LITRG response

This consultation builds on a previous HMRC call for evidence on the topic of safeguards and the work of the Tax Administration Framework Review. It looks at options to simplify, modernise and reform HMRC’s approach to dispute resolution. Its main focus is ease of access and use of statutory review and alternative dispute resolution.

We welcome this work, because safeguards like statutory review are essential to promote fairness of treatment, consistency of approach and underlying trust in the tax system. Statutory review and alternative dispute resolution are important means of resolution without litigation. The middle and lower-income population may rely on these for dispute resolution, because taking a case to Tribunal can be extremely costly.

We welcome suggestions to improve accessibility and ease of use of statutory review and alternative dispute resolution. However, HMRC could and should be more proactive in explaining and offering these options to taxpayers.