At Plus Accounting, we have a strong presence in and knowledge of the video games sector, providing tailored financial and technical support to indie developers and studios of all sizes. As we expand our services into the film and TV production studios industry, we bring a wealth of knowledge and a deep understanding of the unique challenges and opportunities within this dynamic field. Our goal is to help growing studios leverage creative industry reliefs, to help with cashflow for their projects and achieve sustainable growth. These reliefs include Film Tax Relief, Animation Tax Relief, High-end Television Tax Relief, Children’s Television Tax Relief, and the Audio-Visual Expenditure Credit.
Expertise in Video Games Tax Relief
Our team has years of experience supporting gaming studios with their Video Games Tax Relief claims, amassing over £5million in claims that have been reinvested into the sector, enabling continued growth for numerous studios. With this expertise, we are now extending our support to other creative industries, making the transition to the Film & TV production sector a natural progression. We already work with several clients in this industry but believe we can positively impact and support a wider audience across the South East.
We recently read an article in Marketing Week titled ‘How major film studios are reaching gamers to drive box office success,’ which highlighted the clear cross-over dynamics between the two industries.
Navigating the Complexities of Film and TV Production Studios
The high-stakes world of blockbuster filmmaking and television production requires not only creative vision but also robust financial planning and technical support. Major film studios like Warner Bros and Universal Pictures have demonstrated the importance of innovative marketing and strategic partnerships to ensure box office success. For example, the recent $1.44 billion success of Warner Bros’ Barbie movie was driven by a combination of traditional and digital marketing strategies, including a significant focus on engaging the gaming community.
We understand the critical role that financial planning and technical guidance play in navigating these complexities. Our team of experts is well-versed in the intricacies of film and TV production, from budget management and tax incentives to royalty calculations and investor relations. We are committed to providing the support and guidance needed to help studios thrive in a competitive market.
Leveraging Creative Industry Reliefs
One of the key areas where we add value is through our extensive understanding and experience of making creative industry relief claims. These incentives are designed to encourage investment in film and TV production in the UK, allowing studios to reduce their tax liabilities and reinvest in their projects. By leveraging these reliefs, studios can significantly enhance their financial stability and growth potential.
Film Tax Relief
Film Tax Relief (FTR) allows film production companies to claim a significant enhancement their core UK expenditure which can potentially be surrendered for a payable tax credit from HMRC, providing a substantial financial boost. This relief is available for films that are intended for theatrical release, and the production must pass the British Film Institute’s cultural test or qualify as an official co-production. By claiming FTR, studios can offset production costs, enabling them to reinvest in their projects and drive further growth.
Animation Tax Relief
Animation Tax Relief (ATR) supports UK animation productions by allowing companies to claim a payable tax credit worth up to 20% of their core expenditure. To qualify, the production must be intended for broadcast, and at least 51% of the total core expenditure must be on animation, with at least 10% of the core costs incurred in the UK. ATR helps animation studios reduce their tax liabilities, allowing them to focus on creating high-quality animated content.
High-end Television Tax Relief
High-end Television Tax Relief (HTR) is designed to support the production of high-budget TV series. To qualify, the program must be intended for broadcast, have a core expenditure of at least £1 million per hour of production, and pass the British Film Institute’s cultural test. HTR provides a payable tax credit worth up to 25% of the qualifying expenditure, making it an attractive incentive for producers of high-end television content.
Children’s Television Tax Relief
Children’s Television Tax Relief (CTR) offers similar benefits to HTR but is specifically targeted at content aimed at children. To qualify, the program must be intended for broadcast primarily to a children’s audience, and at least 51% of the total core expenditure must be on children’s programming. CTR provides a payable tax credit worth up to 25% of the qualifying expenditure, encouraging the production of high-quality children’s television content.
Audio-Visual Expenditure Credit
The Audio-Visual Expenditure Credit (AVEC) is a relatively new incentive designed to support a broader range of audio-visual content, including online series and new media projects. This credit allows production companies to claim a tax credit based on a percentage of their qualifying expenditure. AVEC aims to encourage innovation and investment in emerging forms of media, helping studios to explore new creative opportunities.
Our expertise in navigating these reliefs ensures that studios can maximise their financial benefits while focusing on their creative endeavours.
Technical Support for Seamless Operations
We are able to offer comprehensive technical support to ensure your studio’s operations run smoothly. This includes advice on financial software implementation, data management, and compliance. Our team can help you streamline your financial processes, improve efficiency, and ensure accurate reporting and analysis.
Finding the Right Partner for Your Studio’s Success
As the film and TV production industry continues to evolve, the need for specialised financial and technical support has never been greater. We are committed to helping studios navigate the complexities of this dynamic field, leveraging our expertise to unlock new opportunities and drive sustainable growth.
By partnering with us, you gain access to a team of dedicated professionals who understand the unique challenges and opportunities within the film and TV production sector. We are here to provide the guidance and support needed to help your studio achieve its full potential.
For more information on how Plus Accounting can support your studio’s financial and technical needs, please contact us today.
Author: Mark Horsfield, Business Services Manager, Plus Accounting
Any views or opinions represented in this blog are personal, belong solely to the blog owner, and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Please note that AI has been utilised in generating content for this blog.
Date published: 08 August 2024