Software scales fast. Your tax exposure scales with it.
SaaS and tech businesses hit cross-border tax in places most accountants miss — US sales-tax nexus on subscriptions, the Delaware flip that investors ask for, and R&D claims under fresh scrutiny. We handle both sides together so your UK and US positions agree before either is filed.
Sector snapshot
The quick read on where SaaS and tech businesses meet cross-border tax.
Selling SaaS creates tax before you notice
Digital services and remote subscriptions can trigger US sales-tax nexus and UK VAT obligations without any physical presence — often once you cross a threshold you weren’t watching.
Investors want a US parent
US VCs frequently require a Delaware holding company on top of your UK business. That flip has tax consequences on both sides and needs planning, not a last-minute scramble.
R&D claims are under fresh scrutiny
Genuine software R&D can qualify for UK relief and US credits — but the rules have tightened and claims are examined closely, so the work must be identified and evidenced properly.
The cross-border friction in this sector
Three places software businesses most often trip over the two tax systems.
The services this sector leans on
R&D tax relief
Relief on qualifying software development that stands up to scrutiny.
The Delaware flip
A US topco over your UK company, with the reliefs protected.
VAT & US sales tax
Map where SaaS sales create nexus and VAT before it becomes a liability.
Corporation tax (both sides)
Keep UK and US corporate tax consistent as revenue grows.
What this sector asks first
Do we owe US sales tax on SaaS subscriptions?
Possibly — many states tax software-as-a-service and apply economic nexus based on sales volume alone, so remote subscriptions can create obligations without an office there. We’ll review the states that matter for you.
When should we do the Delaware flip?
Usually when a US funding round makes it a condition — but the tax outcome depends on timing and how the exchange is structured. Worth modelling before a term sheet forces the date.
Does our software development qualify for R&D relief?
It can, if the work seeks a genuine technical advance and resolves real uncertainty — not all development does. We assess honestly against the current rules rather than stretching a claim.
Scaling across the Atlantic?
A free consultation, no obligation. Tell us where your customers, investors and engineers sit and we’ll map the exposure — with a fixed price before any work begins.
