The UK’s first tier tax tribunal has ordered all cases to be paused until the end of June 2020 to mitigate the impact of coronavirus.
Any proceedings that the tribunal received up until 24 March 2020 will not be processed for at least two more months.
Chamber president Greg Sinfield said that hearings and compliance procedures will be delayed by a further 70 days as well.
But, according to tax advisory firm BDO, the delays could impact any taxpayer that had a dispute with HM Revenue & Customs (HMRC).
Re-consider options available
Dawn Register, partner in the tax dispute resolution division at BDO, said that an out-of-court settlement may be the best option for people with open cases, as court proceedings will be dragging along for months.
“The Tribunal Service is currently under a level of strain that it may never have experienced and with a huge backlog of cases,” Register said. “Given the impact of covid-19, the decision to apply a general stay, or hold, on all proceedings until 30 June 2020 is not surprising.
“For those involved in a tax enquiry or dispute with HMRC, it is immensely stressful and the quest for a conclusion is likely to take even longer than first anticipated.
“As a consequence, those involved in a HMRC dispute should consider all options for resolution. It may be possible to agree a settlement with HMRC outside of tribunal litigation, or use alternative dispute resolution with HMRC.
“Finding a mutually agreeable solution with HMRC can be challenging, and so, people impacted should seek expert professional advice.”
