50,000 unresolved tax cases were waiting to progress through the First-tier Tribunal as at the end of March 2023, Ministry of Justice figures confirm – double the number outstanding at the end of 2020/21. The FTT saw a surge in cases across 2022 and 2023, with HMRC taking increasing action against umbrella companies.
Talia Greenbaum, BDO partner and accredited alternative dispute resolution mediator, said: ‘The back-up in cases at the First-Tier Tribunal leaves those with tax disputes facing the prospect of a protracted wait. This is likely to prove difficult for many parties, both from a financial and emotional perspective. As a result, we expect a growing number of people to seek to settle their tax disputes through the Alternative Dispute Resolution process.
‘These lengthy delays can also pose significant difficulties for businesses. Outstanding tax disputes can be a major obstacle for business owners looking to sell. Businesses also run the risk of accruing large tax debts in the event of a decision going against them, not least because interest rates on late payments are at their highest level for 14 years.’
50,000 unresolved tax cases were waiting to progress through the First-tier Tribunal as at the end of March 2023, Ministry of Justice figures confirm – double the number outstanding at the end of 2020/21. The FTT saw a surge in cases across 2022 and 2023, with HMRC taking increasing action against umbrella companies.
Talia Greenbaum, BDO partner and accredited alternative dispute resolution mediator, said: ‘The back-up in cases at the First-Tier Tribunal leaves those with tax disputes facing the prospect of a protracted wait. This is likely to prove difficult for many parties, both from a financial and emotional perspective. As a result, we expect a growing number of people to seek to settle their tax disputes through the Alternative Dispute Resolution process.
‘These lengthy delays can also pose significant difficulties for businesses. Outstanding tax disputes can be a major obstacle for business owners looking to sell. Businesses also run the risk of accruing large tax debts in the event of a decision going against them, not least because interest rates on late payments are at their highest level for 14 years.’
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