Accountants for Film and TV Industry: Application Tips 2025

Introduction

If you work in entertainment, you’ll know that tax credits and reliefs play a significant role. The role of accountants in the film and TV Industry becomes essential when applying for these incentives. In 2025, the rules for film and TV tax credits are evolving. It’s vital to understand how to navigate the application process and how the right accountants can streamline your claim. This article breaks down key tips for applying successfully in the UK and provides insights relevant for production companies with US connections as well.

Understanding the Landscape of Film and TV Tax Credits

Before you start your claim, you must understand the relief regimes. In the UK, for instance, the previous reliefs for film, high-end TV, children’s TV, and animation have been combined into a single scheme known as the Audio-Visual Expenditure Credit (AVEC). UK Screen Alliance+2BFI+2
Under AVEC:

• For films or high‑end TV, the taxable credit is 34% gross of qualifying UK core expenditure. UK Screen Alliance+1
  

• For children’s TV and animation, the rate is 39% gross. BFI+1
  The application of such schemes requires meeting criteria, such as a 10% minimum UK core spend and passing the cultural test. BFI+1
  

For production companies operating transatlantic or with US tax exposure, experienced accountants can help reconcile UK reliefs alongside US tax obligations. As noted by firms specialising in this area, “We work as part of their production teams … including the AVEC and the new Independent Film Tax Credit (IFTC)”. SRLV

Why You Need Specialist Accountants for the Film and TV Industry

Navigating these tax credits is not straightforward. You can’t rely on a standard spreadsheet accountant. Instead, you need accountants who understand:  The bespoke nature of production accounting,

• the creative industry relief rules,

• The interplay between UK and US tax laws (if applicable).

A specialist accountant for the film & TV industry will usually:

• Engage with the production from an early stage, advising on structure and funding,

• Ensure eligible costs, UK core spend and cultural certification are managed,

• Liaise with bodies such as the British Film Institute (BFI) and HM Revenue & Customs (HMRC) in the UK.

For example, one UK firm emphasises: “We work across day‑to‑day finances and production accounting, tax and VAT compliance, shielding clients’ US and international exposure”. SRLV

When you engage the right accountants, you transform the complexity of tax credit applications into a structured, strategic process. That means better outcomes, fewer surprises, and more certainty.

Key Application Tips for 2025 for Film and TV Production

Here are six practical areas where you should focus your efforts to maximise success with your tax credit claim.

1. Start Early – Structure Before Production

Timing matters. Suppose you wait until after production begins, you may miss eligible expenditure or fail to meet the criteria. The production company must be registered as a UK limited company (if in the UK) before principal photography. UK Screen Alliance+1
Your specialist accountants for the film and TV industry should be involved at pre‑production to:

• Advice on entity formation,

• Assess UK spend levels,

• Map the cultural test requirements.

Starting late can result in ineligible spend or failure to meet the minimum UK core expenditure thresholds.

2. Meet the UK Core Spend and Cultural Test Requirements

Under the UK regime, you must spend a minimum of 10 % of your core production costs in the UK to qualify. BFI+1
The cultural test is applied to certify the film or programme as British (via the BFI) or an approved co‑production. GOV.UK+1
Your accountants can help track all UK‑qualifying expenditure (pre‑production, principal photography, post‑production, etc.) and ensure you have the correct evidence to support your claim. Without that, your claim may be delayed or rejected.

3. Understand the New Rules for 2025 and Beyond

Updates are coming into effect. For instance, in the UK:

• The AVEC scheme will take full effect from   April  2025 for new productions. PwC Tax Summaries+1
  

• The enhanced regime for lower-budget films, often referred to as the Independent Film Tax Credit (IFTC), offers a higher net value. BFI
  

• Some older reliefs will close for principal photography starting after 31 March 2025. GOV.UK
  

Your accountants, who specialise in this sector, need to be updated on these changes and advise you accordingly so you don’t miss the window or claim incorrectly.

4. Plan Your Budget and Cost‑Tracking Systems

Productions often struggle to distinguish between qualifying and non-qualifying expenditure. Your accountants should put in place systems early that:

• Classify costs by category,

• Separate UK core spend from overseas spend,

• Allocate “neutral costs” (such as senior producer/writer/insurer costs) proportionately when part of the production is outside the UK. UK Screen Alliance
  Proper cost‑tracking strengthens your claim and reduces the risk of challenge by HMRC.

5. Compile Correct Documentation and Submit on Time

Evidence is key to claims. You will need:

• a BFI certificate (interim and final) for UK productions. GOV.UK+1
  

• A breakdown of UK versus non‑UK core expenditure.

• The claim must be filed via the company tax return with supplementary forms (for UK reliefs). GOV.UK
  Missing documentation can delay your claim. With your specialist accountants on board, you’ll have someone managing this process end‑to‑end.

6. Coordinate with Funding, Co‑Productions and International Exposure

Many productions now involve multiple funding sources, co‑productions and international financing. Your accountants should help you:

• Understand how funding arrangements affect eligibility and relief amounts,

• Coordinate between UK reliefs and any US tax incentives if you have US involvement.,

• Mitigate the risk of overlapping reliefs or claiming incorrectly.

This coordination ensures that your claim for tax relief is optimised and doesn’t conflict with other incentives or regulations.

How to Choose the Right Accountants for the Film and TV Industry

Selecting the right accountants is a critical decision. Here are the key criteria you should use.

Experience in the Creative & Entertainment Sector

Look for accountants who specifically list film and TV production accounting, or creative industry tax reliefs. For example, one UK firm states that it has over 35 years of experience working with film & TV clients. SRLV
This sector‑specific experience means they understand the nuanced rules and production dynamics.

Proactive and Strategic Engagement

Rather than being reactive at year‑end, your accountants should join your project during pre‑production and remain involved through production, post‑production, and tax claim. They should act as strategic advisers and not simply fulfil compliance.

UK & US Capabilities (if applicable)

If your production has US exposure, ensure the accountants can advise on cross-border tax issues, withholding taxes, royalties, and US-UK structures. A generalist accountant may not adequately cover these aspects.

Good Reputation and Track Record

Check for testimonials, case studies or references in the film/TV industry. A firm recognised as a specialist for creative industry tax reliefs will give you confidence.

Clear Communication and Transparent Fees

Production environments are fast-moving. Your accountants should provide clear communication, be accessible during your production timeline and have transparent fee structures aligned to your project’s size and scope.

Common Pitfalls and How Your Accountants Can Help Avoid Them

Even when you have a specialist accountant, you should be aware of common mistakes. By partnering with the right accountants for the film and TV industry, you can mitigate these risks.

Pitfall 1: Starting too late
If you engage accountants after filming begins, you may have missed opportunities to structure your finances or track qualifying costs. A specialist will ensure you start early and follow best practice.

Pitfall 2: Under‑estimating UK core spend requirements
Failing to meet the 10% UK core spend threshold (for UK relief) is a common issue. Your accountant will help you plan, spend and ensure documentation bridges this gap.

Pitfall 3: Overlooking cultural certification
Without the BFI certificate or cultural test pass, a claim may be invalid. Accountants experienced in this sector know how to address this requirement.

Pitfall 4: Poor cost classification
Mixing up qualifying and non‑qualifying costs can reduce your net credit and raise the risk of challenge. Your accountant should establish cost tracking early.

Pitfall 5: Not staying current with rules
Tax credit rules evolve. For 2025, the UK regime is shifting to AVEC and IFTC. Accountants must be fully briefed. Using outdated methods can be costly in terms of time and money.

Why This Matters for Your Production’s Bottom Line

Using specialist accountants for the film and TV industry isn’t just about compliance. It is about maximising value. The difference in effective tax credits can be substantial. For example:

• The AVEC credit at 34% gross (for film and high-end TV) is equivalent to approximately 25.5% net in the UK regime. UK Screen Alliance+1
  

• For smaller budget films under the IFTC, the net rate can rise to approximately 39.75% under the new rules. BFI+1
  

That kind of incremental benefit means every pound correctly claimed is a pound earned back in your budget. With tighter margins in film and TV production, that’s meaningful. Your accountants play a direct role in enhancing financial performance and mitigating risk.

Conclusion

When you engage Accountants for the Film and TV Industry, you invest in expert guidance through a complex application process for tax credits and reliefs. With the evolving rules of 2025 (the UK’s AVEC and IFTC, as well as the complexity of cross-border production), selecting the right accountants is crucial. By starting early, planning your UK core spend, maintaining accurate documentation, and aligning your production financing, you ensure you extract maximum value while managing risk. The right accountants become a partner in your production success.

Ready to optimise your finances with expert guidance? Contact JungleTax today at hello@jungletax.co.uk or call 0333 880 7974 to speak with our specialist accountants.