Accountants for IT Services & Tech Consultancies
Specialist accounting for IT consultants, managed service providers, software developers and technology businesses across the UK.
Accounting Built for the Technology Sector
IT services businesses and tech consultancies face a set of accounting challenges that most generalist firms get wrong — R&D tax credit eligibility, IR35 exposure across a subcontractor network, VAT on software and digital services, and the cash flow pressures of rapid scaling. Magnum Accountancy understands the technology sector and gives you accounting that reflects how your business actually works.
R&D Tax Credits for IT & Tech
The technology sector is one of the highest-qualifying areas for R&D tax relief — yet many IT businesses leave significant money unclaimed because they assume their work “isn’t innovative enough.” If your team is solving technical problems, writing custom code, developing new software, or overcoming technological uncertainty, you almost certainly qualify. We identify the qualifying activities across your projects, prepare a robust R&D report and maximise your claim — typically recovering thousands in corporation tax or generating a payable credit for loss-making companies.
VAT for Software & Technology Services
VAT in the technology sector has layers of complexity — digital services to consumers, B2B cross-border supplies, SaaS licensing, cloud platform charges and the treatment of subcontractor costs. We manage your quarterly VAT returns under MTD, handle the reverse charge correctly on services received from overseas suppliers, and advise on the VAT position for contracts with international clients — so you’re neither overcharging nor exposing yourself to an unexpected VAT liability.
IR35 & Subcontractor Compliance
IR35 is one of the most significant risk areas for IT businesses — whether you’re a consultant operating through your own PSC, or a tech firm that engages a network of subcontractors. We review your contracts and working arrangements to determine status, help you build the documentation to defend a compliant outside-IR35 position, and advise client-side businesses on their off-payroll working obligations. Getting this wrong can mean years of unpaid tax, NIC and penalties.
Management Accounts & Bookkeeping
Fast-growing tech businesses need more than a year-end accounts dump. We provide monthly or quarterly management accounts that give you a clear picture of revenue, gross margins, project profitability and recurring vs one-off income — the numbers that actually drive decisions in a technology business. Combined with clean, up-to-date bookkeeping, you always know where you stand and can move fast when opportunities arise.
Payroll & Contractor Management
Whether you run a small employed team, a blended workforce of employees and contractors, or pay yourself as the sole director, we manage payroll accurately and on time. We handle PAYE, NIC, RTI submissions, auto-enrolment and benefits-in-kind — and advise on tax-efficient ways to reward technical staff, including EMI share option schemes and salary sacrifice arrangements that are particularly attractive to tech employees.
Profit Extraction & Director Pay
For IT consultants and tech business owners operating through a limited company, how you extract profit is one of the most important tax decisions you make each year. We model the most efficient salary and dividend combination for your circumstances, consider the impact of pension contributions, and review your position annually to make sure it stays optimised as corporation tax rates, dividend allowances and higher-rate thresholds change.
Why IT Businesses & Tech Consultancies Choose Magnum
We Know the Tech Sector
R&D credits, IR35, software VAT, subcontractor chains — these aren’t edge cases for us. They’re the everyday reality of the IT businesses we work with.
Proactive R&D Claim Reviews
We assess your R&D eligibility every year as standard — you don’t need to ask. If there’s money to reclaim, we find it and claim it properly.
Fixed Fees, No Surprises
One predictable monthly fee covers accounts, tax, VAT and ongoing advice. You’ll never be billed for picking up the phone to ask a question.
Ready to Work with an Accountant Who Understands Tech?
Book a free 30-minute call with Daxa to discuss your IT business.
Daxa Khunti — Managing Director
📞 01223 297374 | ✉️ daxa@magnumaccountancy.com