Disputes backlog following general stay of proceedings

Following the general stay of proceedings in the First-tier Tribunal Tax Chamber announced on 24 March and further extended on 21 April, the backlog of outstanding tax disputes is expected to increase from the 27,280 cases as at 31 March 2020, report Pinsent Masons following a freedom of information request. The number of outstanding disputes increased by more than 1,000, up from 26,010 in the previous three months. The firm notes that further delays to proceedings could have a significant financial impact on businesses which are having to wait for decisions on taxes.

Clara Boyd, partner at Pinsent Masons, said: ‘HMRC’s response to the coronavirus outbreak has shown great flexibility in areas, such as allowing tax owed to be paid back in more affordable instalments. It would be great if they extended this pragmatic approach to tax disputes and negotiated more settlements rather than fighting them all the way through the courts. That would be a tremendous help to UK businesses who otherwise might have to wait years to find out what their tax bill is.’