• April 2014

    SunMonTueWedThuFriSatTax week
    --1   2   3   4   5   52
    6   7   8   9   1011121
    131415161718192
    202122232425263
    27282930---4
    • 6th - Start of 2014-2015 tax year
    • 18th - Easter Friday (E,W,NI,S)
    • 19th - HMRC cheque payments due
    • 21st - Easter Monday (E,W,NI)
    • 22nd - HMRC BACS payments due
  • May 2014

    SunMonTueWedThuFriSatTax week
    ----1   2   3   4
    4   5   6   7   8   9   105
    111213141516176
    181920212223247
    252627282930318
    • 5th - May Bank Holiday (E,W,NI,S)
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
    • 26th - Spring Bank Holiday (E,W,NI,S)
    • 31st - Employee P60s due
  • June 2014

    SunMonTueWedThuFriSatTax week
    1   2   3   4   5   6   7   9
    8   9   101112131410
    1516171819202111
    2223242526272812
    2930-----13
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
  • July 2014

    SunMonTueWedThuFriSatTax week
    --1   2   3   4   5   13
    6   7   8   9   10111214
    1314151617181915
    2021222324252616
    2728293031--17
    • 6th - Forms P11D, P11D(b) and P9D due
    • 14th - Battle of the Boyne (Orangemen’s Day) (NI)
    • 19th - HMRC cheque payments due
    • 19th - Payment of 2013/14 Class 1A NIC due
    • 22nd - HMRC BACS payments due
    • 31st - Payment of 2013/14 Class 2 NIC due
  • August 2014

    SunMonTueWedThuFriSatTax week
    -----1   2   17
    3   4   5   6   7   8   9   18
    1011121314151619
    1718192021222320
    2425262728293021
    31------22
    • 4th - Summer Bank Holiday (S)
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
    • 25th - Summer Bank Holiday (E,W,NI)
  • September 2014

    SunMonTueWedThuFriSatTax week
    -1   2   3   4   5   6   22
    7   8   9   1011121323
    1415161718192024
    2122232425262725
    282930----26
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
  • October 2014

    SunMonTueWedThuFriSatTax week
    ---1   2   3   4   26
    5   6   7   8   9   101127
    1213141516171828
    1920212223242529
    262728293031-30
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
  • November 2014

    SunMonTueWedThuFriSatTax week
    ------1   30
    2   3   4   5   6   7   8   31
    9   10111213141532
    1617181920212233
    2324252627282934
    30------35
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
  • December 2014

    SunMonTueWedThuFriSatTax week
    -1   2   3   4   5   6   35
    7   8   9   1011121336
    1415161718192037
    2122232425262738
    28293031---39
    • 1st - St. Andrew's Day (S)
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
    • 25th - Christmas Day
    • 26th - Boxing Day
  • January 2015

    SunMonTueWedThuFriSatTax week
    ----1   2   3   39
    4   5   6   7   8   9   1040
    1112131415161741
    1819202122232442
    2526272829303143
    • 1st - New Year's Day
    • 2nd - 2nd January Bank Holiday (S)
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
  • February 2015

    SunMonTueWedThuFriSatTax week
    1   2   3   4   5   6   7   44
    8   9   101112131445
    1516171819202146
    2223242526272847
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
  • March 2015

    SunMonTueWedThuFriSatTax week
    1   2   3   4   5   6   7   48
    8   9   101112131449
    1516171819202150
    2223242526272851
    293031----52
    • 17th - St. Patrick's Day (NI)
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
UK Tax Week

   14 Dec - 20 Dec

73

Contact us 

Tel: +44 (0)1753 630300

 
 

Budgeting for filming in the UK

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Summary

In today's global production environment, many international film production centres are introducing or enhancing their film tax incentive offers in order to remain competitive. Without a rebate, production centres find themselves at a disadvantage when looking to attract inward investment or retain domestic production.

Tagged: Production Accounting, Movie Magic, Budgeting, Production Services, Pay Scales

Budgeting for filming in the UK

Budgeting for filming in the UK

In today's global production environment, many European and other international film production centres are introducing or enhancing their film tax incentive offers in order to remain competitive. Without a rebate, production centres find themselves at a disadvantage when looking to attract inward investment or retain domestic production.

According to the 2010 Oxford Economic report The Economic Impact of the UK Film Industry, the UK's film tax relief is vital to sustaining current levels of global competitiveness and job creation. 'Without the UK film tax relief in place, UK GDP would be reduced by around £1.4 billion a year. That compares with a current cost of the film tax relief of around £110 million a year, meaning that an extra £13 in GDP is generated for every £1 invested.'[1]

In the USA, the recent year long extension of California's film tax credits  has proved to be welcome relief for the industry there, as it has already kept thousands of jobs within the State that would otherwise have moved out. [2]

 

Keeping abreast of production incentives

For producers and accountants, analysing and keeping up to date with tax rebates in different jurisdictions and building the variables into a budget can be complicated. An extremely valuable resource for assisting in understanding the differences and similarities between the incentives is Entertainment Partners' website. Their production incentives information is detailed by individual jurisdiction, and allows for incentives to be compared against each other.

 

The importance of accuracy in international budgeting

The first step in ensuring the expected value of the tax relief in any jurisdiction is correct is to create an accurate schedule and budget by an experienced producer or production accountant. Given the schedule and the budget together are the documents which create the finance plan, they are essential for producers when raising the money to finance the production.

An example of the need for accuracy within the budget is around whether a production incentive could apply to particular labour costs. The labour must be correctly identified as resident or distant, the numbers of crew in each category must be known, and the number of weeks or days they are needed for.  These essential elements will help to create an accurate figure of how much will attract an incentive (which in itself will be different in different territories).

For low budget and very low budget British qualifying films, different arrangements for performers may be used, all of which are outlined in the PACT/Equity cinema agreement. The budget will need to be certified by a member of the Production Guild of Great Britain.

 

Movie Magic Budgeting

Industry standard software is available to help when putting together a budget. Movie Magic Budgeting 7 , for example, has been designed to assist with complex budgeting scenarios. It allows for elements to be pulled through from Movie Magic Scheduling, helping to save time and ensure accuracy. It also allows for multiple incentives, credits, and rebates to be applied, compared, and analysed.Here is a video to show you how:

 

 

Industry Pay Scales

There are two below the line departments in the UK film industry that have negotiated agreements outlining rates of pay. These are the PACT/BECTU major US studio feature film construction agreement and the PACT/BECTU major studio feature electricians agreement. Sargent-Disc has recently analysed the average industry pay scales for a range of departments and grades in the UK industry to help when budgeting for production.
The pay scales are currently available to Sargent Disc payroll customers through the new online payroll portal SD Online 2.0.

 

UK's tax relief and other soft money

The rules surrounding qualifying a film as British and the UK tax relief has been detailed in our previous insight article UK Film Tax Relief.

In addition to the tax relief, there is a production fund administered by the British Film Institute that British qualifying films may apply to, and regional money administered by:

Creative England
Creative Scotland
Northern Ireland Screen
Film Agency for Wales

 

How can Sargent-Disc help?

Sargent-Disc can provide a range of services to a production, from pre-production through to post. For information about our services, please contact us at Sargent-Disc. Let us help you with your production and employment enquiries about working in the UK, and take the drama out of your production. Our services include:

Budgeting
Movie Magic Budgeting and Scheduling software
Production software training
Production and post production accounting
Payroll services
Production card

 

Advisors

For advice, guidance and facts  about international production incentives, and to compare them online, visit the incentive solutions section of the Entertainment Partners website or contact them directly here:

 

EP incentives

Entertainment Partners
Incentives Solutions Group

Joseph Chianese, Senior Vice President
Tel: 818.955.6242
Email: jchianese@entertainmentpartners.com

 

There are also a number of specialist accountancy and audit firms in the UK that advise clients when structuring British qualifying films. Here are just a few:

Grant Thornton UK LLP
Christine Corner, Partner
Tel: +44 (0)20 7728 3171
Email: christine.corner@uk.gt.com

Saffery Champness
John Graydon, Partner
Tel: +44 (0)20 7841 4281
Email: john.graydon@saffery.com

Shipleys LLP
Steve Joberns, Principal
Tel: +44 (0)20 7312 6558
Email: stephen.joberns@shipleys.com

 

Further Information

  • The British Film Commission can provide practical information on filming in the UK, the UK tax relief and regional funds

References

[1] http://www.ukfilmcouncil.org.uk/media/pdf/i/r/The_Economic_Impact_of_the_UK_Film_Industry_-_June_2010.pdf

[2]  Los Angeles Times, September 13 2011 http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/09/on-location-sacramento-delivers-a-mixed-bag-for-hollywood-film-tax-credits.html

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