Accounting services for video game developers

Accounting advice for game developers and studios

As specialist video game industry accountants, we support game developers in operating efficiently, profitably and in compliance with UK tax and company law.

The UK has long been recognised as home to some of the most innovative and successful video game studios in the world, from big names such as Rockstar Games to cutting edge indie development teams.

We advise on business planning and growth strategy for game developers. Sometimes, that means supporting them with calculations, challenging questions and forecasting. In other cases, it’s about helping them find sources of capital, whether from innovation grants, lending or outside investment.

We can also advise on how you can use employee share schemes to attract and retain the best game developers. Enterprise management incentive (EMI) schemes allow a company to grant share options to specific employees, giving those team members the right to purchase those shares at an agreed price at some point in the future – a useful way of encouraging talented people to stick around.

More generally, our accounting services for development studios include taking care of a whole range of core business financial administration. That includes bookkeeping, payroll, accounts preparation, corporation tax returns and all those other tasks and responsibilities that take up your time and headspace.

Claiming tax reliefs for game development

The most important aspect of accounting for the video game industry is supporting our clients in claiming valuable tax reliefs.

Video games tax relief (VGTR) is the flagship government tax break for game developers. You can claim VGTR on a project which is certified as British by the British Film Institute (BFI), available to the general public and where at least 25% of core expenditure is on goods or services provided from within the European Economic Area (EEA). It allows you to claim an extra deduction from your profits before calculating the corporation tax you owe.

Another important tax relief to be aware of when accounting for video game studios is the research and development (R&D) tax credit scheme. HMRC’s definition of R&D for tax purposes is a lot broader than the one people might be used to. Contrary to popular belief, it can apply to software development, and game development in particular. You just need to be able to demonstrate that you’ve come up with a genuine technical innovation, such as an improvement in the way 3D graphics are rendered for maximum processor efficiency – not just a new graphical style or gameplay model.