Our client, one of the UK’s largest manufacturers of building products, was so large and operationally complex that it was difficult for them to assess where it qualified for R&D tax relief.
HMRC Engagement
For SMEs it can be difficult to engage effectively with HMRC. There is the “Advanced Assurance” process for the smallest of companies, but the take-up of this has been poor. Larger companies have a CCM, Customer Compliance Manager, assigned to them by HMRC. Regardless of your company’s size, Ayming uses its strong working relationship with HMRC to help create robust and comprehensive R&D tax relief claims that are processed correctly and efficiently.
We pride ourselves on our excellent working relationships with the tax authorities who oversee the schemes on which we provide advice. Ayming plays an active role in the HMRC R&D Consultative Committee and employs ex-HMRC personnel who have been heavily involved in the R&D tax scheme since its inception. This relationship has helped us claim over £300m in tax relief for our clients.
What we did
From the outset, Ayming understood that our client’s project wouldn’t be successful without pre-engagement with HMRC. We opened up and maintained dialogue with their CRM, from inception to completion. This transparent approach ensured that HMRC was receptive to the forthcoming claim.
The engagement with HMRC included an overview of the newly developed methodology, timeframes and estimated figures. Working with HMRC, Ayming made sure they were happy with our approach and in turn, HMRC ensured that the methodology was in line with what they expected.
Ayming’s experts worked collaboratively with client managers and technical teams to develop a comprehensive understanding of the company’s projects and activities. By providing clear definitions and examples of projects, it would become much easier for the client’s team to identify and organise activities for claims.
Results
HMRC’s receptiveness to the new process has been significant. Because of the collaboration between Ayming and HMRC, the company’s claim was processed in under five weeks, with payment coming in just two weeks later – a far cry from the 6 month-long waiting period for other R&DEC submissions at that time. HMRC was able to make the swift payout with full confidence that the company’s claim was impeccably detailed and accurate; in fact, HMRC was complimentary about the quality of the claim.
Head of Tax
