Unlocking the Treasure: Your Guide to UK Film (Shorts and features) Tax Credit
- Enrico Tessarin
- Apr 2
- 2 min read
Over the years, I've successfully secured tax credits for both feature and short films, multiple times and without a hitch.
As I now consult on many low-budget features and short films, I think it is more important than ever to understand how the tax credit can be used properly to finance your films. Especially short films.
I find it amazing that film-makers spend years trying to raise £ 5,000 from various grants but neglect to apply for tax credit, sometimes leaving behind much more than that.
What is my secret to getting the tax credit? Two key players: a meticulous production accountant who knows your company inside out, and a skilled auditor who expertly navigates HMRC requirements. Without these professionals, the process can become a daunting challenge.
Here are some frequently asked questions to help you unlock your film's potential:
1. Is there a tax credit for short films in the UK, and how much can I get?
Absolutely! Tax credits have been available for years, typically amounting to roughly 25 to 32% of your NET UK spend.
2. How does it work?
You need to complete your film and obtain a British qualification certificate from the BFI. All expenses must flow through your company’s bank account, and you must file a tax return for the production company. With your accounts approved by an auditor, you’ll qualify for the credit.
3. Can any accountant handle the tax credit process?
Although a few brave people try and manage almost everything by themselves, the tax credit application does require a specialist auditor. A regular accountant won't do the trick because the process involves detailed audits and precision.
Factor in the costs: around £500 for an accountant and between £500 and £1500 for an auditor before deciding if tax credits are worth pursuing.
4. How much is the tax credit worth?
It’s now up to 32% of your budget, though not all expenses are eligible (development costs, producer fees, etc., are excluded). Generally, tax credits become viable if your production budget is at least £15,000. For example, on a £15,000 budget, you might secure up to £6,000 in tax credit, which is a lot of money, right?
With lower budgets, however, the administrative costs could eat into your benefits.
I hope this short guide proves valuable as you navigate your film financing journey. For more insights, our seminar "Demystifying the Tax credit" in partnership with Unsolicited Scripts is on this SUNDAY, 6th APRIL at 2 PM - It's ONLINE and features a Director, a Producer (yours truly) and an Accountant.
All with direct experience of securing tax credit for short and features.
DM us on the MAKERS CLUB WHATSAPP GROUP FOR SPECIAL DISCOUNT CODE (ONLY FOR MAILING LIST REQUESTS) !!!!
Check out additional blogs on our website www.shorts2features.com
Happy shooting and hope to see you soon face to face.
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Ps - graphics by Myrto Makrides