Our Technology sector approach
Menzies technology team advise a wide range of tech businesses from scale-ups to multinational operations, from software platforms to space tech. We work closely with our clients to find solutions to industry issues, utilising our expertise in everything from business strategy and corporate finance, to audit and tax advice.
As a team, we ensure we work closely with the C-suite team to ensure the mission of the business is understood, and then look to support the growth plan with strategic advice combined with tax efficiency looking at all areas from seed capital to exit strategy.
Key challenges in the sector
The UK’s technology sector is thriving, continuing to be one of the fastest-growing sectors both in the UK and worldwide. Being innovative by nature, technology businesses rely on funding to succeed in developing products for today’s markets and those of the future.
With many sectors continuing to progress through the digitisation journey, and the drive to integrate AI across existing platforms, the marketplace looks to continue to grow. Whilst underlying reliance on tech giants is a factor, the dawn of Co-Pilot has accelerated many software products.
Key challenges to growth include a shortage of resource and skilled workers as well as access to growth capital.
The UK provides tax incentivises for investment in innovative start up and scale up businesses, ranging from the Enterprise Investment Scheme to Research and Development Tax Relief. However, UK tech businesses find it much harder to access investment to grow to the next level without losing independence.
Our Technology sub-sectors
Software development and IT services
The rapidly evolving nature of technology presents both challenges and opportunities for the software development and IT services sector. On one hand, companies must keep pace with continuous advancements in tools, programming languages, and infrastructure while managing cybersecurity risks and the shortage of skilled talent. On the other hand, there are immense opportunities to drive business transformation by offering custom software solutions, cloud-based services, and robust cybersecurity frameworks to businesses seeking to modernise their IT infrastructure.
Fintech
Fintech companies must consider the challenges of regulatory compliance, cybersecurity, and maintaining customer trust in a highly competitive and fast-moving industry. Yet the sector is ripe with opportunities to disrupt traditional banking, payments, and insurance models. By tapping into emerging technologies like blockchain, AI, and automation, fintechs can offer innovative, user-friendly financial solutions that enhance accessibility and reshape customer experiences.
AI and machine learning
The AI and machine learning landscape is marked by challenges such as ethical concerns, data privacy issues, and a shortage of qualified professionals. However, the potential to revolutionise many, if not all, industries – from automating routine tasks to enhancing predictive capabilities – is enormous. Firms that adequately and responsibly harness the power of AI can improve efficiency, drive innovation, and gain deeper insights into customer behaviour.
Data analytics and BI
Whilst there are many positives, use data analytics and business intelligence (BI) creates the challenge of managing large volumes of unstructured data while ensuring data privacy and compliance with stringent regulations. However, the opportunity to help businesses drive operational efficiency has never been greater. By leveraging advanced analytics and BI tools, companies can enhance their competitive advantage, identify market trends, and make data-driven strategic decisions.
Greentech
The greentech sector faces challenges in securing funding and scaling sustainable technologies. Despite these hurdles, there are vast opportunities as the world moves toward more sustainable business practices. From renewable energy solutions to carbon capture technologies, greentech firms can play a crucial role in mitigating climate change and driving the transition to a low-carbon economy, with increasing consumer and governmental support for green initiatives.
Blockchain and crypto
Blockchain and crypto technologies are faced with significant regulatory scrutiny, scalability issues, and volatility in adoption. However, they also offer unparalleled opportunities for decentralisation, secure transactions, and transparency. Beyond cryptocurrencies, blockchain’s potential in areas like supply chain management opens new frontiers for businesses to innovate and enhance trust in digital ecosystems.
Is your business valuation supporting your growth journey?
Download our latest guideWhat’s impacting Technology
Access our insightsOur Insights
How to go global in the tech sector
Sam Goodsell – Director The key to going global in the tech sector is both…
Equity incentives in the technology sector
Retention is a key issue for businesses operating in the technology sector, both because of…
Understanding Tax Savings for UK Tech Firms
The guidelines governing capital allowances underwent a revision this April, following the termination of the…
How to master financial forecasting for tech companies
With technology’s fast-paced and rapidly evolving landscape, financial forecasting can prove challenging for many tech…
What is the Bitcoin Halving 2024?
We have all heard of Bitcoin – Some of us invest in it, some trade…
The continued push for Cryptoasset Clarification
As the Cryptoasset and NFT space continues to grow and evolve, us as tax advisors…
Cryptoasset Reporting 2024: What do cryptoasset investors need to know?
April 2024 will see tax changes affecting cryptoasset reporting to HMRC come into effect. The…
Cryptoasset: What Does HMRC View As Trading?
With HMRC’s latest updates to their cryptoasset manual in February 2022, the days of it…
Navigating FRED 82: Considerations for tech companies
On 27th March 2024, the FRC has issued amendments to UK GAAP. This follows extensive feedback…
Crypto owners – what does the forthcoming budget mean for me?
With the Autumn Budget coming up on 30th October, rumours are circulating regarding what might…
Crypto: Common misconceptions
Investing in cryptoassets is becoming more commonplace, but only 42% of crypto owners were aware…
Do You Have To Pay Tax On Cryptocurrency?
The Crypto space is growing at a rapid rate and whether you believe this is…
Initial coin offering (ICO’s) and crypto ‘tokens’ explained
As 2017 drew to a close we heard all the usual comment about how ‘it…
So you’ve made a profit on Crypto – what can you do about the tax…
Will Sweeney – Tax Technical Specialist Cryptocurrency is a digital ‘token’, recorded using a ‘blockchain’…