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HMRC tests small business tax mediation service

Tax update 10/01/2012

Inspectors from Her Majesty's Revenue and Customs (HMRC) could be trained as mediators to try to resolve issues between colleagues and small business owners who feel they have been subjected to unfair tax demands.

A trail is underway for small businesses in the North West and North Wales, that will allow them to speak with a mediator - a "trained" HMRC official - who will undertake a 30-day impartial assessment of the businesses' claims.

The assistant director of HMRC, Jim Stevenson, said that they are under growing pressure to demonstrate the transparency of how small businesses are taxed, particularly with the imminent introduction of plans to fine owners up to £3,000 for failing to maintain accurate trading records.

Stevenson explained, "Alternative Dispute Resolution (ADR) will help small and medium sized enterprises (SMEs) resolve disputes without having to go to a tribunal - saving them both time and money."

The mediation stage has been welcomed by many tax experts, who have said it is necessary to be able to give disputes a chance for resolution during the initial "compliance check" procedure rather than later on in the proceedings, when formal appeals against a decision have been lodged.

An HMRC spokesman said the first stage of the trial, which took place last year, saw 149 companies invited to try using a mediator, with 128 of them accepting a mediated agreement. The spokesman added that any companies looking to take part should call 01492 523747 between 9am and 4pm, Monday to Friday.

 

If you would like further information, and already subscribe RBS Mentor, please call the Advice Service. If you would like more information on how Mentor could help your business in situations like this and many others, contact us today for information.

 

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