Tech and SaaS accountants

Accountant for app developers

Accountants for UK app developers: App Store and Google Play payouts, in app purchase VAT, subscriptions, R&D relief and company filings on a fixed fee.

Short answer

An app developer accountant reconciles Apple and Google payouts net of their commission, applies the VAT treatment for in app purchases where the store often acts as the supplier, and recognises subscription revenue across the period sold.

Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.

What this means for your company

An app developer accountant reconciles Apple and Google payouts net of their commission, applies the VAT treatment for in app purchases where the store often acts as the supplier, and recognises subscription revenue across the period sold.

01

Store payouts are net of a lot

02

Who accounts for VAT on in app purchases

03

Development spend and R&D

Short answer

An app developer accountant reconciles Apple and Google payouts net of their commission, applies the VAT treatment for in app purchases where the store often acts as the supplier, and recognises subscription revenue across the period sold.

Store payouts are net of a lot

Apple and Google deduct commission, currency conversion and in some territories the local tax they have collected. The payout is therefore not your revenue. We rebuild gross revenue, commission and taxes so your accounts show the true top line and the true platform cost.

Who accounts for VAT on in app purchases

For consumer in app purchases the store is generally treated as the supplier to the end user and handles local VAT or sales tax, with your supply being to the store. That materially changes what goes on your VAT return. Direct web sales outside the store follow different rules again.

Development spend and R&D

Routine app building is not R&D. Solving genuine technical problems, for example novel performance work or new algorithms, can be. We test the claim honestly, because an unsupported claim is now far more likely to be challenged than it was a few years ago.

Before you act

Rates, thresholds and deadlines quoted here reflect the current UK position and current HMRC and Companies House guidance. Check GOV.UK, or ask us, before relying on them for your own business.

Related answers

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Every answer in this cluster is written for UK limited company directors and reviewed against current HMRC and Companies House guidance.

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We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.

Frequently asked

Accountant for app developers: questions directors ask

Do I charge VAT on App Store sales?

Usually your supply is to the store and it handles end user VAT, but the treatment depends on the territory and the arrangement.

How do I report subscription apps?

Recognise revenue over the subscription term and hold the remainder as deferred income.

Are freelancer developer costs deductible?

Yes, and they may also be qualifying expenditure if the project meets the R&D tests.

Which metrics should management accounts show for accountant for app developers?

Useful reporting commonly includes recurring revenue, gross margin, burn, runway, headcount cost, customer acquisition efficiency and cash collection. The exact set should match the company’s model and the decisions founders and investors make each month.

How should deferred income and revenue recognition work for accountant for app developers?

Cash received in advance is not automatically revenue on day one. The accounting treatment follows what has been delivered under the contract, with the undelivered balance carried forward and reconciled to billing data.

What records are needed for accountant for app developers?

Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.

How much does help with accountant for app developers cost?

The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.

Can you take over accountant for app developers from another accountant?

Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.

Can accountant for app developers be handled online?

Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.

Which accounting software works best for accountant for app developers?

We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.

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