Tax Dispute Resolution

Taxation issues are complex matters, and it’s quite common for the wrong duties to be charged, or for those paying the tax to provide an incorrect amount. You may find that, as a result of an HMRC investigation into your tax affairs or those of your business, you are fined for underpayment or asked to pay an amount that you believe is wrong. If this is the case, you will likely enter a tax dispute resolution with the body demanding payment.

How Can DBT & Partners Help?

DBT & Partners employ a dedicated team of tax dispute resolution solicitors who have decades of experience in all areas of tax dispute, including but not limited to:

• Alternative Dispute Resolution (ADR)
• Serious tax investigations under Codes of Practice (COP) 8 and 9
• Reviewing tax avoidance arrangements
• Overseas assets investigations
• Tax dispute disclosures

Throughout the process, you will have minimal contact with HMRC whilst still having the absolute final say on any negotiations made. Our specialist tax dispute resolution solicitors will prepare any disclosure reports that are needed to bring your tax affairs up to date, as well as handle any meetings or interviews with HMRC.

Matters Related to Tax Dispute Resolution

You or your company may require the help of tax dispute resolution solicitors if you are seeking any of the following:

• Property tax dispute resolution
• Service tax dispute resolution
• International tax dispute resolution

Property tax dispute resolution services should be called upon if HMRC concludes an investigation into your affairs – or those of your business – by accusing you of underpaying or avoiding payments of Stamp Duty Land Tax, Inheritance Tax, Capital Gains Tax, Income Tax from rent, VAT or Corporation Tax related to any premises owned or managed by you or your organisation.

Service tax dispute resolution may be required if you are believed to have incorrectly paid VAT or other customs duties, Insurance Premium Tax, Fuel Duty, Gambling Duty or any other amounts related to your use of a service such as shipping.

You may require international tax dispute resolution if, for example, items shipped from other countries, or services provided from abroad, have been double-taxed as the result of taxation being applied both in your country and the country of those doing business with you.

Alternative Dispute Resolution (ADR)

If you have already explained your position to HMRC and appealed against their decision to pursue you for a payment you do not believe is due, you may find that the dispute is dropped. However, if this does not happen and either communication between HMRC and yourself has broken down, there has been some form of misunderstanding or the facts of the case are being disputed by one party or both, we strongly recommend pursuing HMRC Alternative Dispute Resolution. This is a type of formal mediation that takes into account all evidence and is overseen by specialist mediators throughout. It’s often a cheaper and quicker way to come to a solution that suits all parties. DBT & Partners can assist you if you wish to go down this route.

COP 8 and 9

Under Codes of Practice 8 and 9, HMRC can request that an individual or company disclose any activities they have undertaken relating to their tax affairs that have led to incorrect tax returns being filed or the wrong tax being paid – whether the actions in question were deliberate or not. The specialists at DBT & Partners have lengthy experience in dealing with these elements of the legislation.

Tax Disputes: Frequently Asked Questions

How long does a tax dispute take?

Once you have received communication from HMRC informing you of a decision, you have 30 days to respond if you wish to launch a dispute. You should hear back from them within 45 days, and the correspondence you receive at this point will inform you of the outcome of any reviews they have undertaken and of the next steps that are to be followed – for example, whether you will be required to attend a hearing, or whether they require any documentation from you to further support your appeal.

Once a dispute has begun, its length depends on your cooperation with the process, and, if you opt for ADR, how long it takes to come to a satisfactory resolution that suits everyone involved.

When is the best time to consult a solicitor in respect of a tax dispute?

You should notify a company of trusted tax dispute resolution solicitors as soon as you decide that you wish to contest an HMRC taxation decision. You should not take any steps without having legal assistance to hand. However, remember you only have 30 days to inform HMRC of your intentions after you receive the initial decision.

What are the possible outcomes of a tax dispute?

Usually, the result of a tax dispute will fall under the following categories: HMRC accepts your evidence and changes their decision, you are persuaded to accept HMRC’s position and pay any amounts due, a settlement is reached after individual areas of dispute are recognised and solved, or a result is not achieved. If the latter is the case, you may then choose to approach the Taxation Appeal Tribunal for a decision.

It’s vital to make contact with specialist tax dispute resolution solicitors who display a clear understanding of current tax law, as well as any technical issues involved and the tax dispute process in the UK. DBT & Partners will handle your tax dispute with expertise and clarity throughout. Get in touch with us today.