Specialist Accountants for Information Technology

For IT contractors working through limited companies, IR35 status depends on the actual working relationship. If the end client determines you're inside IR35 (deemed employee), they (or the agency) must deduct PAYE and NICs from payments. HMRC's CEST tool examines: control (who decides how/when/where you work), substitution (can you send a replacement), mutuality of obligation (ongoing work obligation), and other factors like equipment provision and financial risk. Outside IR35 determination means you can operate tax-efficiently through your limited company. We review contracts and working practices for each engagement. Explore contractor IR35 services.

Software companies are often excellent candidates for R&D tax credits. Qualifying R&D involves seeking an advance in science or technology through resolution of scientific or technological uncertainty — this includes developing new algorithms, building software where the outcome isn't straightforward, integrating systems in novel ways, or improving performance beyond current capabilities. Qualifying costs include developer salaries, subcontractors, and cloud computing costs used in R&D. We identify qualifying projects and prepare robust HMRC-compliant claims. View corporation tax services.

Under FRS 102, SaaS subscription revenue must be recognised over the period the service is provided — not when cash is received. Annual subscriptions paid upfront create "deferred revenue" (a liability on your balance sheet), released to income monthly. Monthly subscriptions are recognised as invoiced. Setup/onboarding fees linked to the subscription must also be spread over the contract term. We set up your accounting system to correctly track MRR, ARR, churn, and deferred revenue for SaaS metrics and compliant financial statements. Learn about cloud accounting.

IT contractors can claim: computer hardware and software, monitors and peripherals, home office costs, broadband and phone, cloud hosting and SaaS subscriptions (GitHub, AWS, etc.), professional subscriptions (BCS, IET), training and certifications, professional indemnity insurance, travel to client sites, and business-related books and learning resources. For limited company contractors, employer pension contributions are also deductible. See self assessment services.

Since Brexit, UK businesses selling digital services to EU consumers must register for VAT in the EU via the Import One-Stop Shop (IOSS) or register in each EU country where customers are based. For B2B sales, the reverse charge generally applies — the EU business customer accounts for VAT. To non-EU international customers, UK digital services are typically outside the scope of UK VAT. We help navigate these rules and set up compliant systems. Explore VAT services.

For tech startups, a limited company is essential for three reasons: limited liability protection, access to SEIS/EIS investment (only available to limited companies), and EMI option schemes to attract talent. A standard private limited company with ordinary shares is the most common structure. We handle formation, SIC code selection (62012/62020 for IT), share structure advice, Companies House registration, and bank account setup — plus SEIS advance assurance if you're raising investment. View company formation.