ADR Eligibility Check

Alternative Dispute Resolution (ADR) is a way to settle tax disputes without going to a formal tribunal. Before you start the ADR process, make sure your case meets HMRC’s eligibility requirements. ADR usually applies to disputes that come from compliance checks, statutory reviews, or decisions from HMRC that have not been appealed yet.

The dispute must involve a clear question of law or fact, and both parties—yourself and the HMRC caseworker—must agree to participate. Criminal investigations, fraud cases, and appeals before the tribunal fall outside ADR’s scope. ADR also excludes issues that require secondary legislation or where the outcome hinges on policy rather than legal interpretation. The HMRC ADR guide notes that certain large or complex cases may still qualify, provided both sides see value in mediation, but you should not assume automatic eligibility.

To perform an ADR eligibility check, start by reviewing HMRC’s published criteria and guidance notes. Gather all relevant correspondence, including your original compliance check letters, statutory review responses and decision notices. Compare the issues raised in those documents against HMRC’s ADR list: income tax, corporation tax, VAT, PAYE, and certain penalties generally qualify. Next, assess the stage of your dispute—ADR is available once HMRC issues a closure notice or review result but has not yet entered the tribunal process.

If your dispute is still at the early compliance check stage, you can flag your interest in ADR to the caseworker. Where eligibility is unclear, you can write to HMRC’s ADR team, quoting your tax reference and outlining the points in contention. Make sure you understand the process before you spend time drafting ADR submissions. Checking your eligibility saves you effort and helps you see if ADR is the quickest and most affordable way to resolve your dispute.