Successful HMRC enquiry and appeal outcome for AIS Ltd

Challenge

AIS sought an adviser with specialist expertise to support it through an HMRC enquiry and subsequent appeal into its R&D claims.

Value

Drawing on experience of advising on an enquiry and appeal with a similar fact pattern, ForrestBrown was able to challenge HMRC and settle the appeal.

Impact

Through proactive project management, ForrestBrown reduced the day-to-day impact of the enquiry and appeal on the business and safeguarded a significant R&D benefit.

About AIS Ltd

AIS provides solutions to the energy market, including oil, gas and offshore wind. It invests up to 10% of its annual turnover each year in R&D to support projects related to blue sky thinking as well as practical challenges highlighted by clients.

Specialist advice

Although AIS had prepared its R&D claim elsewhere and was happy with its R&D consultant, the company needed specialist enquiry support to help navigate an enquiry relating to the “contracted-out” and “subsidised expenditure” issues. ForrestBrown’s experience in advising Quinn (London) Ltd on a similar enquiry that went to Tribunal, meant that it was ideally placed to leverage the expertise gained to advise AIS.

“Throughout the four-year process, we explored several different routes to progress the enquiry. Everything was clearly articulated at each stage, including the intricacies of the law and how it applied to our case. The previous case that ForrestBrown was successful in taking to Tribunal – Quinn – was directly relevant to ours and it was helpful to be able to draw on the experience gained from it.”

Successful outcome

Using its multi-skilled team of lawyers, tax experts, sector specialists and ex-HMRC inspector to manage the enquiry, the ForrestBrown team explored several different options with AIS to resolve the dispute. This included appealing to the Tribunal. AIS’s Tribunal case was stayed behind two lead cases determined in late 2024 in favour of the taxpayer, which provided clarity on the contracted out and subsidised expenditure points and enabled the AIS enquiry to be settled.

“Hearing that our enquiry had been resolved was truly satisfying. Given that the enquiry had spanned several years, having it accepted by HMRC in accordance with the intent of the law was an excellent outcome.”

Perfect blend of expertise

“I would have no issue in recommending ForrestBrown. The combination of an ex-HMRC inspector coupled with legal, tax and sector specialists, provided the perfect blend of expertise to support our enquiry.”

Sam Coleman, Head of Finance