Accountants for creative agencies in Edinburgh.

Yes, if the work involves resolving genuine scientific or technological uncertainty — not just applying existing knowledge. Agencies that develop bespoke software platforms, proprietary AI tools, or novel digital products for clients may qualify, provided the agency bears the financial risk of the development. Pure creative work (design, copywriting, strategy) does not qualify. Under the merged RDEC scheme (from April 2024), qualifying expenditure generates a taxable credit of 20% of eligible R&D costs, reducing the net benefit to around 15% after tax — still significant on a large development project. We assess eligibility project-by-project and prepare the technical narrative alongside the claim.

Under FRS 102, revenue on a long-term project should be recognised in line with the stage of completion — not deferred until final invoice. WIP is the value of work performed but not yet billed or recognised as revenue. Getting WIP accounting right means your monthly P&L shows actual trading performance rather than invoice timing. For most agencies, the practical approach is a percentage-of-completion basis, updated monthly against project milestones. We build this into your management accounts so the directors always see an accurate picture.

If a freelancer works exclusively or predominantly for your agency, takes direction on how and when to work, cannot substitute someone else, and does not carry financial risk, HMRC is likely to treat them as employed for tax purposes — regardless of what the contract says. The consequences are employer NI on all their fees, PAYE income tax they should have had deducted, and potentially interest and penalties. Off-payroll working rules (IR35) apply where the freelancer works through their own company. We review employment status for your regular freelancers and help you structure engagements to reflect the genuine nature of the relationship.

The standard approach is a salary up to the NI secondary threshold (£12,570 in 2025/26), with profits extracted as dividends. Dividends are taxed at Scottish dividend rates — the same as rUK rates (10.75% basic, 35.75% higher) since dividend income is reserved to Westminster. Above the higher-rate dividend threshold, consider retaining profits in the company and extracting via employer pension contributions (corporation tax deductible, not subject to NI, and not limited by the salary/dividend structure). For agencies with multiple directors, equalising dividend payments across family members holding shares is worth reviewing for legitimacy and compliance.