EP280 - R&D Tax Relief for MSPs – Are You Missing Out on Thousands with Jack Davies and Ian Luckett

In this episode of The IT Experts Podcast, I want to share something that I know many MSPs have either overlooked or been unsure about, and that is R&D tax relief for MSPs, and how it could potentially put thousands back into your business when approached in the right way.

I am joined by Jack Davies, who has been working closely with our community for several years now, helping MSPs understand how R&D tax relief for MSPs actually works in practice. I will be honest, when I first came across this, I was sceptical. Like many of you, I wanted to be sure this was credible, compliant, and something that genuinely added value to a well-run MSP. What I have seen since then, through the results of our clients and the conversations we have had, is that when it is done properly, it can be a powerful opportunity.

We start by getting clear on what R&D tax relief for MSPs really is. It is not a quick win or a shortcut. It is a structured incentive designed to reward businesses that are solving technical challenges and pushing things forward. When you look at it through that lens, it starts to make a lot more sense for MSPs, because that is exactly what many of you are doing every single day.

As we go deeper into the conversation, it becomes clear that a lot of MSPs are already carrying out qualifying work without realising it. Whether it is system integrations, cloud migrations, automation, cyber security projects, or bringing AI into client environments, these are not always straightforward. They involve testing, iteration, and problem solving. This is where R&D tax relief for MSPs starts to become highly relevant, because it focuses on the effort involved in overcoming technical challenges.

One of the most important parts of this conversation is understanding what does not qualify. Straightforward, plug and play work is not what we are talking about here. This is about those moments where your team has to think differently, where there is no obvious answer, and where you are working through uncertainty to find the right solution. Getting clear on this gives you the confidence to approach R&D tax relief for MSPs in a way that protects your reputation and keeps everything above board.

Something that I found particularly interesting, and I know many of you will as well, is the areas that often get overlooked. Internal projects, ongoing improvements, and even the costs around software and subcontractors can all form part of the bigger picture. Many MSPs focus purely on client work, yet a lot of innovation is happening behind the scenes. When you start to recognise that, the opportunity around R&D tax relief for MSPs becomes much broader.

We also spend time talking about how this works in practice. It is not about pointing at one project and saying that is the number. It is about looking across your year, understanding where time and effort has gone into solving technical challenges, and building a fair and reasonable view of that work. This is where having good structure in your business really helps, from tracking projects through to keeping your financials organised.

There have also been some changes to the scheme over the past couple of years, and I wanted to make sure we addressed that clearly. The key takeaway is that the fundamentals of R&D tax relief for MSPs have not been reduced. If anything, they have become more structured. The updates are there to improve the process, create consistency, and make sure everything is handled properly. For you as an MSP owner, that means more clarity and a more stable framework to work within.

We also talk openly about best practice and what to watch out for. There are still people in the market making bold claims and overpromising. My advice is simple, protect your reputation. Work with people who understand both R&D and the MSP space, who can explain the process clearly, and who are focused on doing things the right way.

By the end of this episode, my goal is that you fee