After a successful pilot that saw over 400 applications being received by HMRC Alternative Dispute Resolution (ADR), the service will be rolled out on a permanent basis.

Initially launched in January 2012 as a pilot, ADR will now be available to all individuals and small businesses nationwide, using independent HMRC facilitators to resolve disputes between HMRC and customers during a compliance check, either before or after a decision or assessment has been made.

HMRC's Richard Summersgill, director of Local Compliance, said: 'ADR has shown that many disputes, where an impasse has been reached, can be resolved quickly without having to go to tribunal. We are now considering extending ADR to large and complex cases.

'ADR is a fair and even-handed way of resolving tax disputes between HMRC and its customers and helps save time and costs for everyone.

'We have had good feedback from both SMEs and individual customers and are grateful to the professional bodies and the wider agent community for their assistance and support during the pilot stages. It allows us to work together with our customers and resolve disputes much earlier than at present.'

The facilitators are HMRC members of staff who have been trained in ADR techniques and have not been involved in the dispute.

ADR does not affect existing processes or review and appeal rights, and covers both VAT and direct taxes.

Find more information at HMRC.