Case Study | Infant Products Enquiry Defence

It is a nice to have cash injection, meaning that we will look at projects differently from an R&D perspective moving forwards. This is a benefit we weren’t aware of and it was nice to get cash back as it helps our balance sheet and may allow us to employ additional technical staff who can specialise in this area and win more work in the future.

Client NameManaging Director

Challenge

HMRC questioned the level of innovation behind the work, particularly the unique design of its infant open cup.

HMRC enquiry threatened entire R&D claim.
HMRC stressed that there was insufficient innovation to class the work as R&D.
Potential to put a halt to our client's next phase of growth.

Solution

Wilby Jones proved that their was technical uncertainty in the infant products.

Demonstrated how the cup’s design differed from standard cups by reducing wrist movement and supporting infant grip strength.
Showed that there were no current methods for measuring success in early-stage weaning products.
Helped HMRC better understand the innovation through direct conversations with the project leads.

Impact

Wilby Jones successfully resolved the enquiry allowing the company to reach it's next stage of growth.

Enquiry was successfully resolved after HMRC was satisfied with the evidence provided throughout the process.
The case highlighted the value of direct, face-to-face communication with HMRC, helping to create clearer and more productive discussions.
Following the successful outcome, the company expanded its partnership with us to include Accounting and Patent Box services alongside R&D tax credits, creating a more streamlined and cohesive experience.

Who was the client?

Our client is a UK company that designs and sells unique feeding and weaning products for babies. They are best known for protective coverall bibs that set out to save time and manage mess made by infants. After developing this, they quickly discovered the benefits to childhood development.

It was concluded by experts that making a mess during weaning is critical to growth and development. This led to the client creating baby products with growth front of mind. but when HMRC refused to recognise the innovation behind these products, it threatened to bring their efforts to a halt.

What challenges did our client face?

HMRC had issues with the actual innovation behind their work. For instance, HMRC could not see the value in the unique geometric designs in their open cup for infants. Our client designed the product to encourage better muscle development than conventional cups in infants, which was supported by detailed research.

Yet, HMRC stated that despite the scientific evidence that self feeding is hugely important at a young age, the product fell short in proving a direct relationship between the product and an increase in the infants coordination.

What was the result?

The enquiry was successfully resolved after HMRC was satisfied with the level of transparency and evidence provided throughout the process. The case also demonstrated the value of face-to-face communication with HMRC, an approach many advisers are often hesitant to take.

Following the successful outcome, our client expanded its partnership with us to include Accounting and Patent Box services alongside R&D tax credits.

Resolving the enquiry allowed them to continue its innovative work supporting infant growth and development. Having one adviser manage all three services also created a more cohesive and streamlined experience for the business.

Who was the client?

What challenges did our client face?

What was the result?

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