Plus Accounting is an event sponsor for GaMaYo and alongside providing the first drink to attendees, Sam Baldwin will be there to meet studios at a roundtable where you can share your worries and questions with him directly from 5-6pm on 22nd May at Project House Leeds. In advance of the event, we asked Sam to share his thoughts on how studios can best navigate the financial and tax landscape. Here is what he sent us.
The journey of an indie game studio or freelance contractor in the gaming industry is an exciting one—filled with creative freedom, innovation, and the potential for huge success. But while crafting incredible games is your passion, navigating the financial and tax landscape can feel overwhelming.
At Plus Accounting, we work closely with indie game studios, contractors, and developers to provide expert financial advice tailored to the gaming industry. As supporters of Game Republic’s GaMaYo events in 2025, we’re here to share key financial considerations that can help you build a financially sustainable and thriving business.
Choosing the Right Business Structure
When starting as an indie studio or contractor, your first financial decision is how to structure your business. Your choice will impact tax, liability, and financial planning. The three most common options in the UK are:
- Sole Trader – Simple setup, but you’re personally liable for any business debts.
- Limited Company – Offers greater credibility, tax efficiency, and legal protection, but requires more admin.
- Partnership – Suitable for teams but requires clear financial agreements.
How we can help: Our team can advise on the best structure based on your goals and help you register with HMRC or Companies House.
Tax & VAT: What You Need to Know
Taxes can be complex, but planning ahead can save you money. Key areas to consider include:
- Self-Assessment Tax Returns – If you’re self-employed or a director drawing dividends, you must file an annual self-assessment tax return.
- Corporation Tax – Limited companies must pay corporation tax on profits. The rate of corporation tax ranges from 19-25% depending on the company’s profits.
- VAT Registration – If your UK revenue exceeds £90,000 in a 12 month period, you must register for VAT.
- Dividends & Salary – If you’re running a limited company, paying yourself tax-efficiently is key to keeping more of your hard-earned income.
How we can help: We ensure you meet your tax obligations, claim all allowable expenses, and structure your payments efficiently to minimise tax.
Video Games Tax Relief (VGTR) & Video Games Expenditure Credit (VGEC)
If your indie studio is creating a game that meets cultural test criteria, you could be eligible for Video Games Tax Relief (VGTR) or the Video Games Expenditure Credit (VGEC) which can provide direct tax repayments based on your qualifying spend. Many studios overlook this relief, missing out on significant financial benefits and a potential route to help fund development.
How we can help: We specialise in both creative tax credits, ensuring you maximise your claims and receive funding to reinvest in your studio.
Managing Cash Flow & Funding Your Projects
Many indie studios and contractors struggle with cash flow management, especially with delayed payments, fluctuating income, and the unpredictability of game launches. To avoid financial strain:
- Budget for development cycles – Account for software, licenses, and freelancer costs.
- Secure funding early – Explore grants, publisher advances, or crowdfunding options.
- Monitor expenses – Use tools like Xero to track income and spending in real time.
How we can help: We provide cash flow forecasting and financial planning to ensure you have enough runway to focus on game development without financial stress.
Contracts, IR35 & Protecting Yourself
If you’re a contractor working with game studios, understanding IR35 rules is essential. The UK government introduced IR35 legislation to determine if contractors should be taxed like employees.
- Inside IR35 – You’re taxed as an employee, reducing tax efficiency.
- Outside IR35 – You operate as a genuine business and can benefit from tax efficiencies.
How we can help: We guide you through IR35 assessments, ensuring you stay compliant while maximising your income.
Keeping on Top of Accounting & Admin
Financial admin can be time-consuming, but using the right tools can make life easier:
- Xero – Cloud accounting software for tracking income and expenses.
- Dext – Automates receipt and invoice processing.
How we can help: We integrate these tools into your business, making accounting stress-free and fully digital.
At Plus Accounting, we’re passionate about supporting indie game developers, contractors, and creative teams. Whether you need tax advice, funding guidance, or financial planning, we’re here to help.
Meet us at Game Republic’s GaMaYo events in 2025, where Sam Baldwin from Plus Accounting will be attending!
To attend Game Republic events throughout the year to network with studios, gain access to experts, benefit from business development support, just get in touch with us.
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