Tax Accountants for Animation Studios Helping You Stay Financially Strong

Animation studios in the UK produce standout content across film, TV, and digital platforms, blending creativity with advanced tools to tell compelling stories. Whether hand-drawn or CGI, these studios lead with craft and vision. Behind the scenes, however, many face irregular cash flow, delayed payments, complex payroll, and time-consuming tax relief claims. Tight deadlines and shifting client needs add further pressure to lean teams. That’s where Apex Accountants helps. Since 2006, we’ve supported UK animation studios with personalised services including VAT, payroll, R&D tax relief, and forecasting. With over 20 years of experience, we’re trusted tax accountants for animation studios, helping creative businesses stay financially organised so they can focus on their next big idea.

Key Trends and Challenges

• The broader UK animation, VFX, and post-production sector is projected to grow from £2.94 billion in 2025 to £6.99 billion by 2030, reflecting a compound annual growth rate (CAGR) of 18.91%.
• The integration of advanced technologies like AI-driven tools and Unreal Engine 5 is transforming the animation sector but also requires studios to adapt rapidly to stay competitive. ​
• Under the AVEC/VGEC scheme, children’s television, animated TV shows, and animated films qualify for a tax credit at a rate of 39%, which replaces the previous effective rate of 29.25%.
• From April 2025, the 80% cap on qualifying expenditure for UK VFX costs will be removed, allowing for greater tax relief benefits. ​
•  The Animation Tax Relief (ATR) will close for all productions from April 1, 2027, with the AVEC serving as its successor.

Who Can Benefit From Our Services?

• Animators
•  Designers
•   Illustrators
•   Photographers
•   Artists

Sector-Specific Services for Animation Studios

Core Tax & Compliance Services

• Corporation Tax Returns: We prepare accurate tax returns aligned with production spend and relief eligibility.
• VAT Registration & Returns: We handle VAT from registration to submission, including cross-border advice.
• Film, TV & Animation Tax Credits (AVEC): We manage claims, ensuring your submissions meet HMRC standards.
• Animation Tax Relief (ATR) Claims: We support BFI certification and build detailed cost reports for ATR eligibility.
• R&D Tax Relief Claims: We identify eligible innovation in production and prepare compliant, well-evidenced claims, offering tax advice for animation studios throughout the process.
• EIS, SEIS & EMI Support: We design equity schemes that attract investment and reward creative staff.
• Tax Planning Advice: We create strategies to reduce tax exposure without disrupting production flow, guided by a personal tax accountant.
• Self-Assessment Returns: We file personal tax returns for directors, freelancers, and studio leads.
• Company Share Valuations: We prepare HMRC-ready valuations to support share schemes and equity planning.
• Co-Production Certification Advice: We assist with BFI certification for international co-productions to access incentives.

Employment & Payroll Expertise

• PAYE & Pensions: We manage payroll, RTI submissions, and pension compliance for permanent and freelance teams.
• Freelancer Management & IR35: We assess worker status, advise on contracts, and prevent costly IR35 misclassification.
• Employment Law Support: We advise on contracts, rights, and obligations in line with UK law for studio hires.

Studio Structuring & Exit Planning

• Special Purpose Vehicles (SPVs): We help structure SPVs for individual projects to ring-fence risk and allocate profits.
• Exit Strategy Advisory: When the time comes to sell, we:
  • Help improve the studio’s value proposition
  • Identify strategic buyers
  • Manage the sales process professionally
  • Offer tax-efficient structuring for the best return

Accountancy Services

• Bookkeeping System Setup: We implement cloud platforms with a customised chart of accounts and provide full team training. As the best accountant for animation studios, we make sure everything is set up to support your workflow and financial needs.
• Company Accounts Preparation: We prepare and file annual accounts with accuracy and industry insight.
• Accountant’s Reports: We produce reports, BFI certification, and funding applications.
• Confirmation Statements & Secretarial Filing: We handle annual returns and company secretarial obligations.

Business Planning & Advisory

• Business Plans & Forecasting: We draft financial plans for pitching, grants, and internal planning.
• Company Formations: We register studios and manage HMRC and Companies House obligations from day one.
• Business Health Checks: We assess studio finances and highlight clear steps for improvement.

Outsourced & Payroll Services

• Company Payroll: We manage payroll, RTI, and pension compliance for permanent and freelance teams.
• Virtual CFO Support: We provide strategic guidance on production budgets, investor reporting, and funding rounds.
• Cloud Accounting Oversight: We monitor your digital accounts and provide real-time access and financial clarity through accounting software.

Animation Tax Relief – A Vital Boost for UK Studios

Animation Tax Relief (ATR) helps UK studios cut production costs and reinvest in creativity. But claiming it requires strict compliance, BFI certification, and clear financial planning. A personal tax accountant can guide you through the process. Here’s a quick guide to what matters most.

Key Points to remember About Animation Tax Relief

• BFI Certification Required – Projects must pass the cultural test and be officially certified.
• Broadcast Intent Needed – Projects must be for TV or streaming, not training or adverts.
• Core Spend Conditions Apply – 51% on animation and 10% in the UK.
• Claim Options – Deduct from profits or receive a tax credit worth 25% of losses.
• File with CT600P – Mandatory from April 2025.
• ATR Ends April 2027 – No claims for projects starting after March 2025.

Solving UK Studio Issues with Tax Accountants for Animation Studios

• Cash Flow Instability: Studios often face delayed payments and irregular income streams, leading to financial strain. Apex Accountants provides tailored cash flow forecasting and budgeting services to help studios maintain financial stability.​
• Complex Tax Relief Navigation: Understanding and applying for various tax reliefs like AVEC can be daunting. We offer expert guidance on tax relief eligibility and application processes. Our tax advice for animation studios helps ensure studios maximise their entitlements.
• Rising Production Costs: Inflation and increased labour costs are squeezing budgets.
  Our cost analysis and financial planning services, provided by the best accountant for animation studios, assist studios in managing expenses effectively.
• Regulatory Compliance: Keeping up with changing regulations and compliance requirements is challenging. We stay abreast of legislative changes, providing clients with timely advice to remain compliant.​
• Talent Retention and Payroll Management: High turnover and managing freelance contracts can be complex. Our payroll and HR advisory services streamline processes, aiding in talent retention and efficient contract management.​

Why Choose Apex Accountants for Your Animation Studio

For over two decades, Apex Accountants has supported UK animation studios with practical, production-focused financial services. We understand the unique pressures of creative businesses. As trusted tax accountants for animation studios, we offer solutions that make a real difference.

• Specialists in Animation, R&D, and AVEC tax relief claims
• Cash flow forecasting and budgeting for project-based income
• Cloud accounting setup and real-time reporting
• Payroll and pension services for freelance-heavy teams
• Support with BFI certification and co-production structuring
• Assistance in pre- and post production services

Get in touch with our team today for expert accounting and tax support in line with animation studios. We’re ready to help you keep your projects financially strong and future-ready.