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Financing

Hi everyone, after successfully completing my first feature 'Whisper' I am now entering into development on my second feature. I have a cast, crew and of my £40,000 budget I have managed to put together £4000 (10%). I am now entering the murky world of film investment and trying to pull funds in. I have been in touch with different production companies in early conversations, but just want to make sure it's done right.
Our first was fully self funded so we didn't encounter this issue at that time.
Is there anyone out there who can provide some support? Advice?

  • 40k is the lowest that's been known to qualify for a UK tax credit rebate so it'd be worth factoring that in.

    I've just done an essay for my NFTS course on the film tax credit so I could give you some pointers in that area if you like

    4 months ago
    • Richard - are you talking SEIS tax credit (50% rebate off income tax/CGT, which is claimed by and goes to investers?) Or are you talking about UK Film Production Tax Credit (c.20% tax credit on eligible production costs, goes to the production company.)
      Chris - I have direct experience with both, if you'd like to get in touch.

      4 months ago
    • @Glyn Carter Film production tax credit not SEIS/EIS

      4 months ago
  • Richard, could I please have a copy of your essay on UK film tax credits? My email is: info@mof.media
    Best, Azeem Khan

    4 months ago
  • Richard, could I please have a copy of your essay on UK film tax credits? My email is: info@mof.media
    Best, Azeem Khan

    4 months ago
  • Hi Glyn, thanks for that will ping a message across to you!

    4 months ago
  • Hi Richard, I'd also be interested in your essay if you're willing to share. My email dan@roguerunner.com - Christopher, I went down the self-financed route a couple of years ago at a £100k budget and if you're seeking more generalised info regarding budgeting etc I'm happy to help, though can't offer much help re seeking investment.

    4 months ago
  • Just a heads up in case anyone is getting excited about tax credits - they're great and they are essential to the UK film industry, but as you'd imagine do have an administration overhead. They are available for films destined for theatrical (not DVD/streaming) sales, although I've not seen the intent challenged. They are administered through your statutory accountant for your limited company, and that itself is an overhead that may be a step too far for a £40k project.

    It also puts you square on the radar for HMRC for payroll taxes, and that's a big thing. HMRC will check up on you maybe even a year later, and require proof that you set up a formal payroll for most grades (runners, focus pullers, dressers, PC's, some AD's, boom swingers...) who simply cannot be paid on invoice (without a Lorimer letter/loan-out from another limited company). That payroll must pay minimum wage, of course, and must account for holiday pay and employers/employees NI - workplace pensions may become a thing even for short term engagements but don't really make sense in context).

    I'm not saying this to put you off trying for a tax credit, just that it costs money to do so, and may not leave you much further ahead, or indeed behind if you try to wing it with HMRC. When they come checking long after production is over, if the right taxes weren't paid for SA cast and crew at the time and you paid them gross, you can easily find yourself now paying the taxes as if that was a net payment. If you're looking to fly under the radar (and on a £40k production, you need to be), then don't put yourself on it.

    Similar with SEIS/EIS which require the sale of new shares for R&D activities, and which whilst simple to administer in themselves do also bring you into regularised limited company corporate structures and the significantly increased accounting costs thereof.

    4 months ago