Since James Geary joined Randall & Payne in August 2014, our clients have saved over £7 million in tax from R&D Tax Relief. This week James talks about the size of an average R&D claim in the IT sector.
We complete claims for a large number of companies in this sector. In these fast moving times innovations around online and cloud based systems are moving at breakneck speed and new security threats present themselves on a daily basis. IT innovations are therefore constant and systems have a shorter and shorter shelf life. Key to these businesses is therefore constant innovation, both in terms of new systems and upgrades to existing systems.We deal with many companies in this sector that have turnover typically between £250,000 and £1.5 million, usually with at least four or five developers on their payroll. Annual R&D claims are worth on average around £30,000 for this kind of company, which is very valuable cash often enabling them to expand and take on another developer to further grow the business, which then further paves the way for even more valuable claims for the growing business.Two of our IT clients have grown over the last five years to the point where the annual claims are worth well in excess of £100,000 every year, and the relief has become a crucial part of their growth strategy.James is Head of Corporate Tax at Randall & Payne, and has a particular focus on R&D Tax Relief, Patent Box and Capital Allowances.Key to the way James operates is a collaborative and adaptable approach to projects, both when working with clients but also when working with other firms to help their clients with R&D claims. This approach has won a lot of support locally, and the firm now benefits from a considerable number of referrals from other accounting firms that do not themselves have R&D Tax Relief as a specialism.Click here to see our R&D Tax Relief page.Contact James Geary for more information by emailing firstname.lastname@example.org or call 01242 776000.