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HMRC awarded SAP a £275 million contract without competitive bidding to migrate its Enterprise Tax Management Platform from legacy ECC 6.0 to S/4HANA by 2035. The tax system handles over £800 billion annually and requires both SaaS delivery and UK hosting for sovereignty reasons. HMRC justified the sole-source award by claiming SAP was the only vendor meeting both requirements. The migration faces challenges due to heavy customization in the current system, which SAP recommends removing in favor of a "clean core" approach. SAP's mainstream support for ECC ends in 2027, with extended support available until 2030-2033 depending on migration commitments.

SAP scores £275M award from HMRC, without competition