• April 2015

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

    MonTueWedThuFriSatSunTax week
    ----1   2   3   4
    4   5   6   7   8   9   105
    111213141516176
    181920212223247
    252627282930318
    • 4th - May Bank Holiday (E,W,NI,S)
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
    • 25th - Spring Bank Holiday (E,W,NI,S)
    • 31st - Employee P60s due
  • June 2015

    MonTueWedThuFriSatSunTax 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 2015

    MonTueWedThuFriSatSunTax week
    --1   2   3   4   5   13
    6   7   8   9   10111214
    1314151617181915
    2021222324252616
    2728293031--17
    • 6th - Forms P11D, P11D(b) and P9D due
    • 6th - Form 42 Due
    • 13th - Battle of the Boyne - Bank Holiday (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 2015

    MonTueWedThuFriSatSunTax week
    -----1   2   17
    3   4   5   6   7   8   9   18
    1011121314151619
    1718192021222320
    2425262728293021
    31------22
    • 3rd - Summer Bank Holiday (S)
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
    • 31st - Summer Bank Holiday (E,W,NI)
  • September 2015

    MonTueWedThuFriSatSunTax 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 2015

    MonTueWedThuFriSatSunTax week
    ---1   2   3   4   26
    5   6   7   8   9   101127
    1213141516171828
    1920212223242529
    262728293031-30
    • 1st - Personal Income Tax Statement
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
    • 31st - Paper Self Assessment Tax Return Deadline
  • November 2015

    MonTueWedThuFriSatSunTax 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
    • 30th - St. Andrew's Day (S)
  • December 2015

    MonTueWedThuFriSatSunTax week
    -1   2   3   4   5   6   35
    7   8   9   1011121336
    1415161718192037
    2122232425262738
    28293031---39
    • 3rd - Autumn Statement 2015
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
    • 25th - Christmas Day
    • 28th - Boxing Day
  • January 2016

    MonTueWedThuFriSatSunTax week
    ----1   2   3   39
    4   5   6   7   8   9   1040
    1112131415161741
    1819202122232442
    2526272829303143
    • 1st - New Year's Day
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
    • 31st - Online Self Assessment Tax Return Due
  • February 2016

    MonTueWedThuFriSatSunTax week
    1   2   3   4   5   6   7   44
    8   9   101112131445
    1516171819202146
    2223242526272847
    29------48
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
  • March 2016

    MonTueWedThuFriSatSunTax week
    -1   2   3   4   5   6   48
    7   8   9   1011121349
    1415161718192050
    2122232425262751
    28293031---52
    • 17th - St. Patrick's Day (NI)
    • 19th - HMRC cheque payments due
    • 22nd - HMRC BACS payments due
    • 25th - Good Friday (E,W,NI,S)
    • 28th - Easter Monday (E,W,NI)
UK Tax Week

   31 Aug - 06 Sep

22

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 order to raise finance for your production, it is essential to create a budget that outlines your specifications without any unnecessary costs. One of the most important things to decide is where to shoot.

In today's global production environment, many European and international film production centres are introducing or enhancing their film tax incentive offers in order to remain competitive. The UK offers a substantial tax incentive, subject to specific requirements being met and as a result is often considered as an option when budgeting.

 

UK film tax relief and other soft money


The UK's current film tax relief system was introduced in 2007 and is widely acknowledged to be an essential part of financing for domestic and international projects shooting in the UK. The UK system provides generous tax relief for film and high-end television, and is available on qualifying UK production expenditure on the lower of either: 80% of total core expenditure; or the UK core expenditure incurred.

Films with total core expenditure of £20 million or less can claim tax relief of up to 25% on UK qualifying production expenditure. For films with a core expenditure of more than £20 million, the production company can claim tax relief of up to 25% on the first £20 million of UK qualifying expenditure and 20% thereafter. Subject to EU ratification, this is set to change so that all films will qualify for the up to 25% tax relief.

High-end television and animation tax relief was introduced in the UK on 1st April 2013. Since then, the minimum UK expenditure requirement for television tax relief has reduced from 25% to 10%; with the reduction being applied to animation too. Like film, television tax relief is available on qualifying UK production expenditure on the lower of either: 80% of total core expenditure; or the UK core expenditure incurred.

In 2015, the government announced that the higher rate of 25% relief would be given to films made with budgets over £20million. The rules surrounding qualifying a film as British and the UK tax relief have been detailed in our insight article  UK Film Tax Relief.

In addition to the tax relief, the British Film Institute administers a fund that British qualifying films may apply for.

Other regional funds include:

Creative England
Creative Scotland
Northern Ireland Screen
Film Agency for Wales

For more film agencies, see the British Film Institute website.

 

Labour


In order to ensure the accuracy of a budget, it is important to understand whether a production incentive applies to particular labour costs. The UK operates on a used and consumed basis, and so all labour qualifies as long as it is used within the United Kingdom. Unlike some countries, the UK boasts a deep crew base, so it is unlikely that significant overseas labour would be required.

 

Industry Pay Scales


Despite filming in the UK, it is important to understand the labour costs and requirements of any country in case you end up employing international cast and crew. For example, a first assistant director based in Los Angeles may be used to a different pay rate than their UK counterpart.

Sargent-Disc has analysed industry pay scales for a range of crew in different departments and grades in the UK to help when budgeting for production. The pay scales are currently available to Sargent Disc payroll customers through the online payroll portal  SD Online 2.0.

Rates of pay in some countries are determined by collective union agreements. In the UK rates can be agreed on an individual basis. However, there are at least 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. Rates for performers can be found in the PACT/Equity Cinema Agreement and specific arrangements exist for low budget and very low budget films.

 

UK Fringes

 

It is important to budget for UK fringes when planning to shoot in the UK. These include social security and workplace pension contributions.

 

Social Security


UK National Insurance contributions are required from all Pay As You Earn (PAYE) workers, with employers contributing 13.8% of earnings. However, performers and certain other workers are deemed as self-employed and can be exempt from this. For more information on which roles can be deemed to be self-employed in the entertainment industry, see HMRC's guidelines.

 

Workplace Pension Reform


Changes to UK pension legislation ensure that all qualifying workers automatically receive the employer pension contributions they are entitled to from the employer's Staging Date. The staging of companies is being phased in until the 1st of February 2018. Currently, staged employers are required to make a minimum contribution of 1% of Qualifying Earnings, with employees doing the same until October 2017 when this will increase to 2% employer and 3% employee. From October 2018 employers will have to pay 3% with employees paying 5%.

Workplace Pension Reform Auto Enrolment introduces complex rules and obligations on the employer. In order to assist productions Sargent-Disc has developed an integrated solution that works with our payroll service and automates many time consuming processes for the employer. For more information, see our insight article on Auto Enrolment.

 

Movie Magic Budgeting


Industry standard software is available to help when putting together a budget.  Movie Magic Budgeting 7 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. For a video guide, see below:

 

Staying on top 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 the Entertainment Partners' website. Their production incentives information is detailed by individual jurisdiction, and allows for incentives to be compared against each other.

 

How can Sargent-Disc help?


At Sargent-Disc, one of our Production Accountants can certify your budget. Sargent-Disc can also provide a range of services to a production, from pre-production through to post. This includes our suite of digital production tools including, SD Online Payroll, Digital Purchase Order, SD Production Card, Movie Magic Scheduling and Budgeting, and Vista Accounting Software. 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.

 

EP Financial Solutions


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:

Entertainment Partners
Incentives Solutions Group

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

 

 UK Advisors


There are a number of specialist accountancy and audit firms in the UK that advise clients when structuring British qualifying projects. 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: jobernss@shipleys.com

 

Further Information


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

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