HMRC trains 'mediators' for small business tax disputes Richard Mannion, national head of tax at Smith & Williamson, said that if the service filled the gap lost by the removal of HMRC's district inspectors, who took calls from tax agents when their clients faced over zealous local inspectors, then it would be welcomed. It does need to be resourced properly. There were 700 district inspectors," he said. Andrew Gotch from the Chartered Institute of Taxation said: "This is an entirely voluntary process, from which neither side can possibly emerge worse off. In fact, evidence from the earlier phase of the pilot suggests that participants usually emerge far better off either in terms of getting a solution or understanding each others" positions better, thus saving stress, time and costs." However, John Cassidy, tax investigations and resolutions partner at accountants PKF, said he did not believe the service would provide a "meaningful alternative." "SMEs will need to be reassured that a procedure reliant upon an HMRC facilitator is genuinely independent - bosses will shun the ADR unless they believe that they'll get a fair hearing from the taxman," he said. An HMRC spokesman said in the first stage of the trial last year 149 companies were invited at the appeal stage of a dispute to use a mediator rather than go to tribunal and 128 accepted a mediated agreement. The mediation covers both VAT and direct taxes disputes and is not binding. HMRC said businesses looking to take part could call 01492 523747 "between 9.00am and 4.00pm, Monday to Friday."