Skip to content

Part of Accotax, an ICAEW regulated firm. Offices in Morden, Croydon, Chelsea and Mitcham.

0203 4411 258[email protected]

WhatsApp

Accountants for IT and software contractors

High day rates make tax planning worth the effort. We keep you compliant and keep more of what you earn.

  • Contractor accounting
  • R&D tax relief
  • VAT returns and registration

What does an accountant do for IT and software contractors?

IT contractor accountants look after your limited company's accounts, VAT, payroll, dividends and IR35 position, and check whether your software work qualifies for R&D tax relief. Most IT contractors fit the Complete package.

What is different for you.

The parts of the rules that matter most for this kind of company.

01

IR35 and day rates

Status decisions and contract wording matter more at higher rates.

02

R&D relief

Product-building developers may qualify for R&D relief.

03

Overseas clients

VAT on services to non-UK customers follows the place-of-supply rules.

How the work differs for IT and software contractors.

The parts of the job that matter most for this kind of company, and how we handle them.

01

R&D relief and technical claims

Software and IT companies are among the most common claimants of R&D tax relief, because developing a new system or solving a technical uncertainty can count. Routine maintenance and using known techniques generally do not.

We help you identify the projects that qualify, write the technical narrative and keep the evidence for an enquiry.

  • Qualifying projects identified
  • Technical narrative written
  • Claim notification and forms handled
02

Selling to clients overseas

Software businesses often sell to customers abroad, and the VAT treatment depends on where the customer is and whether they are a business. Business-to-business services are generally outside the scope of UK VAT but still have to be reported correctly, and consumer sales can bring local VAT obligations.

We set up the invoicing and VAT coding so you are right from the first sale.

  • Place of supply determined
  • Reverse charge and zero-rating handled
  • Invoices that show the right wording
03

Equipment, subscriptions and intellectual property

Laptops, monitors and test devices can usually be written off in the year of purchase, and subscriptions, cloud hosting and tools are allowable when used for the business. Where you create valuable IP, how it is owned and how profits are taken matters for the future.

We keep the asset register, the subscriptions and the ownership documents tidy so you are ready for investment or sale.

  • Equipment written off in year one
  • SaaS and cloud costs coded
  • IP ownership documented

The usual way, and ours.

Common in software companies

  • R&D never claimed
  • Overseas VAT guessed
  • Subscriptions in a spreadsheet
  • IP assumed to belong to the company

With us

  • R&D reviewed every year
  • VAT treatment set per customer type
  • Subscriptions coded automatically
  • IP assignment on file

Rules to watch.

Rule

Equipment

Laptops and equipment qualify for 100% first-year relief.

Your year with us.

What happens, and when.

  1. Each projectLog technical uncertainty and time spent.
  2. QuarterlyVAT return if registered.
  3. Before year endEquipment purchases and pension contributions reviewed.
  4. With the CT600R&D claim and additional information form filed.

Mistakes we prevent.

Avoided

Not claiming R&D

Many software companies qualify and never ask.

Avoided

Charging UK VAT to overseas businesses by default

The rules depend on the customer. We set it up correctly.

Avoided

No written IP assignment

Buyers and investors ask who owns the code.

Fixed fees for IT and software contractors.

Prices exclude VAT. Final price depends on turnover and options.

Essential

Micro and new companies

£45.83a month + VAT

  • Statutory accounts
  • Corporation Tax return (CT600)
  • Confirmation statement
  • One director Self Assessment
  • Deadline reminders
Buy onlineOr get a quote first
Recommended

Complete

Trading and online businesses

£62.50a month + VAT

  • Everything in Essential
  • Monthly bookkeeping
  • Quarterly MTD VAT returns
  • Director payroll and RTI
  • Quarterly review call
Buy onlineOr get a quote first

Growth

Growing, data-led teams

£75a month + VAT

  • Everything in Complete
  • Payroll for up to 5 employees
  • Priority accountant access
  • Quarterly tax planning
Buy onlineOr get a quote first

Rated 4.9 out of 5.

“He took the time to explain every step of the process and made a complex situation much easier to understand.”
Hugo AlvarezGoogle review of Accotax
“They take the time to understand how our business works and what our needs are.”
Mael LeboucherGoogle review of Accotax
“Very prompt in responding to questions and patient with us even when we seem to be slow.”
Mansur LimanGoogle review of Accotax
“He took care of everything promptly and kept me informed throughout, which was greatly appreciated.”
SofiaGoogle review of Accotax
“It was a pleasure working with Anum on our accounts. The whole process was swift and effortless, and it was one less thing to worry about.”
Jamie FletcherGoogle review of Accotax
“The work was completed promptly, my tax return was successfully filed.”
Sergey MGoogle review of Accotax

IT and software contractors: questions.

Can software development qualify for R&D relief?

Yes, if it seeks a genuine technological advance and resolves uncertainty. Routine development usually does not.

Accounts for IT and software contractors, sorted.

Tell us about your company and we will confirm your fixed fee within one working day.