Commercial Production Companies Archives

Navigating the Transition From Film Tax Relief to AVEC and VGEC for Commercial Production Businesses in 2026

Posted on September 17, 2025September 25, 2025 by Sidra

The UK’s creative industries are about to face a significant financial change. The Audio-Visual Expenditure Credit (AVEC) and the Video Game Expenditure Credit (VGEC) will replace the long-standing Film Tax Relief starting in April 2026. The introduction of AVEC and VGEC for commercial production businesses will directly affect project financing, cash flow management, and investor relations. Apex Accountants helps production companies adapt to and benefit from the new regime.

AVEC for Commercial Production Companies

The Audio-Visual Expenditure Credit (AVEC) will replace the long-standing Film Tax Relief from April 2026. It applies to film, high-end TV, animation, and children’s TV productions. Unlike the old deduction system, AVEC works as a direct expenditure credit, giving companies a more predictable cash benefit.

AVEC for commercial production companies is particularly relevant where work is commissioned for advertising, branded content, or co-productions that qualify under cultural and creative sector rules. Qualifying expenditure is based on core costs such as production, post-production, and VFX. The credit is calculated at a fixed percentage of these costs, improving transparency for producers and investors.

This means productions can forecast cash inflows with greater certainty, making AVEC a valuable tool in securing finance and maintaining cash flow during demanding projects.

VGEC for Commercial Production Companies

The Video Game Expenditure Credit (VGEC) is designed to replace the Video Games Tax Relief and will also begin in April 2026. It supports companies producing games that pass the cultural test set by the British Film Institute. VGEC applies to both UK-based games and international collaborations that meet qualifying criteria.

VGEC creates opportunities for commercial production companies involved in branded interactive content or partnerships with gaming studios to claim credits on qualifying development expenditure. This includes design, programming, and testing costs linked directly to eligible projects.

The credit system presents a straightforward cash benefit rather than a tax deduction, which improves cash flow for companies during lengthy development cycles. This helps businesses take on larger-scale interactive projects and remain competitive in an expanding digital media market.

Why the tax scheme changes for UK creative industry matters

The introduction of AVEC and VGEC is part of the government’s plan to modernise how the UK supports the screen and gaming industries. Film tax relief has served the industry for many years, but the government recognises that a credit-based system offers clearer, more predictable benefits.

For production companies, this means moving from a model that reduced taxable profits to one where a credit is paid against qualifying expenditure. The shift will have a direct impact on cash flow planning and the timing of project funding. Those who adapt early will gain an advantage, while those who delay risk financial strain.

Key features of AVEC and VGEC For Commercial Production Businesses

The credits have been designed with transparency and competitiveness in mind. Some of the main features include:

Credit-based structure – qualifying companies receive a payable credit instead of a tax deduction.
Expanded eligibility – both UK productions and international co-productions may qualify if cultural criteria are satisfied.
Greater transparency – detailed records linking invoices, payroll, and contracts to projects will be essential.
Improved predictability – production companies will have more certainty over the level of support available.
Stronger international position – the new credits make the UK more attractive to global investors.

Implications for commercial production companies

The impact of tax scheme changes for the UK creative industry will be felt across multiple areas of financial management.

Budget planning will need to change, as the timing of credits differs from the previous reliefs. Production managers need to consider the timing of credit claims and their impact on payments to crews, suppliers, and other partners.

Tax structuring also becomes more important. Costs must be separated between qualifying and non-qualifying expenditure to avoid errors and delays. This requires reliable accounting systems and accurate project-level data capture.

For investors, the new system may be positive. Clearer forecasts and predictable credits can help secure financing for future projects. At the same time, compliance standards are rising. HMRC will expect strong evidence of every cost, which means more detailed record-keeping than before.

How Apex Accountants helped a production client

One of our commercial production clients was concerned about how the move to AVEC would affect their projects already in development. Their budgets were built around Film Tax Relief, and they faced the risk of shortfalls.

We carried out a full financial review and restructured their budgets to reflect AVEC rules. We also implemented new bookkeeping processes that allowed all costs to be tagged to projects in real time.

The results were immediate:

They secured a £450,000 credit on a major advertising campaign.
Their cash flow remained stable despite the policy shift.
Investor confidence grew due to transparent and accurate forecasting.

By acting early, they avoided disruption and positioned themselves ahead of competitors still adapting to the new system.

Preparing for April 2026 Tax Scheme Changes in UK

Production companies should not wait until the last minute to make changes. Preparing now will reduce risks and allow projects to run smoothly under the new credit system. Key steps include:

Reviewing upcoming projects to confirm which will qualify under AVEC or VGEC.
Updating budgets and forecasts to reflect the timing of credit payments.
Adapting accounting systems to capture and separate qualifying costs.
Training finance teams to comply with the stricter evidence requirements.
Seeking early advice to avoid delays in making claims.

Why choose Apex Accountants

At Apex Accountants, we specialise in supporting the creative industry. We understand the challenges production companies face and provide tailored services that go beyond compliance. Our work includes:

Forecasting credits so production teams can plan with confidence.
Managing AVEC and VGEC claims from start to finish.
Aligning financial planning with investor reporting.
Offering fractional and virtual CFO support to strengthen leadership.

We combine technical tax expertise with deep knowledge of the production sector. This makes us a trusted partner for companies looking to secure stability and growth during the transition.

The transition from Film Tax Relief to AVEC and VGEC is fast approaching. Preparing now will help your production company avoid disruption and make the most of the new credits. At Apex Accountants, we provide expert guidance tailored to commercial production companies in the UK.

Whether you need support with forecasting, structuring claims, or managing investor reporting, our specialist team is ready to help.

Get in touch with Apex Accountants today to discuss your projects and find out how we can support your business through this change.

How Fractional CFOs for Commercial Production Businesses Drive Growth in the UK

Posted on September 17, 2025September 25, 2025 by Sidra

Commercial production companies in the UK operate in a highly competitive sector. Success depends not only on creativity but also on strong financial leadership. Hiring a full-time CFO is often too costly for small and mid-sized companies. This is where fractional CFOs for commercial production businesses provide a valuable solution. At Apex Accountants, we specialise in providing flexible financial leadership that supports growth without adding unnecessary overhead.

Why Fractional CFOs For Commercial Production Businesses Are Valuable

Fractional CFOs work part-time or on a project basis. This gives commercial production companies access to senior financial expertise without the expense of hiring a full-time executive. Their support provides a range of practical benefits:

Strategic planning – aligning budgets with growth targets

A fractional CFO helps create realistic budgets that support expansion. For example, a company moving from small advertising projects into higher-value branded content received a growth plan that factored in new equipment costs, higher payroll, and projected revenue increases. This ensured ambitions were backed by financial stability.

Cash flow management – keeping productions on track

Production businesses often face late client payments or unexpected expenses. A fractional CFO develops cash flow models that highlight gaps before they cause disruption. For instance, during a £500,000 commercial shoot, staged supplier payments were aligned with client instalments, avoiding delays and keeping the project on schedule.

Tax efficiency – structuring projects to claim reliefs

The UK offers valuable reliefs such as Film Tax Relief and VAT recovery on overseas shoots. A fractional CFO ensures these are applied correctly. One production company saved thousands by properly documenting cross-border invoices, enabling them to reclaim VAT that would otherwise have been lost.

Investor confidence – presenting reliable forecasts

Securing external funding often requires detailed financial projections. Fractional CFOs prepare investor-ready reports with clear assumptions and stress-tested forecasts. This gave one production house the credibility to secure £250,000 in bridge finance to cover costs before final client payments arrived.

Scalability – adjusting support as the company grows

Fractional CFOs provide flexible input that grows with the business. A small production firm initially used part-time financial leadership for cash flow support. As they expanded into multiple projects, the service scaled to include long-term strategy, financial reporting, and board-level guidance.

How Fractional CFOs Drive Growth in Production Businesses

Project-Based Forecasting
Each production carries unique risks. A fractional CFO helps build rolling forecasts that consider stage payments, supplier costs, and delivery milestones.
Funding and Investment Support
From film tax relief claims to negotiating with investors, fractional CFOs provide clarity that strengthens financial credibility.
HMRC Compliance
Production companies often juggle VAT rules, PAYE for freelancers, and relief claims. A fractional CFO ensures compliance while reducing the risk of HMRC disputes.
Technology Integration
With cloud-based accounting, businesses gain real-time access to data. This transparency allows for faster decisions and stronger cost control.

Case Study: How Apex Accountants Helped a Production Company Scale

A London-based commercial production company approached Apex Accountants during a period of rapid growth. They struggled with cash flow gaps, unpredictable client payments, and complex VAT claims on international shoots.

Our fractional CFO service provided:

A detailed cash flow model linked to project milestones.
Implementation of cloud accounting software for real-time tracking.
Guidance on cross-border VAT recovery and relief claims.
A clear funding strategy that secured short-term financing.

Within 12 months, the company reported stronger margins, faster investor approvals, and a more predictable financial structure. The flexibility of our fractional CFO support for commercial production companies meant they received high-level leadership without the burden of a full-time salary.

Why Choose Apex Accountants’ Fractional CFO Services For Production Companies

At Apex Accountants, we understand the unique financial challenges of UK production companies. Our fractional CFO support for commercial production companies includes:

Expert financial leadership tailored to creative businesses.
Flexible arrangements that adapt to your project cycle.
Industry knowledge to support relief claims, compliance, and growth strategies.

We help you focus on delivering exceptional productions while we handle financial clarity and control. Are you ready to scale with financial confidence? Speak to Apex Accountants today about our fractional CFO services for production companies.

Why 2026 Is the Year to Embrace Cloud Accounting for Commercial Production Companies in UK

Posted on September 17, 2025September 25, 2025 by Sidra

Commercial production companies manage multiple projects at once, from television commercials to digital campaigns. Budgets, cast and crew costs, equipment rental and tax compliance must all be tracked accurately. Traditional, desktop‑based accounting tools cannot keep up. They lock financial data in one location and create delays when managers need real‑time information. The UK’s move to Making Tax Digital (MTD) will make digital record‑keeping compulsory for many businesses from April 2026, with landlords and sole traders earning above £50,000 needing to maintain digital records and submit quarterly updates. In 2027, the threshold will drop to £30,000. By 2025 more than 90% of accounting firms around the world are expected to use cloud platforms for bookkeeping and reporting. 2026 will therefore be the tipping point when cloud accounting for commercial production companies will become essential rather than optional.

As Apex Accountants, we specialise in helping production companies adopt technology that improves efficiency and compliance. The following guide explains why cloud accounting is the future for production companies and shows how switching to the cloud has already transformed one of our clients.

Why Cloud Accounting Matters in 2026

Digital tax compliance is approaching

The UK government’s Making Tax Digital (MTD) programme will require digital record‑keeping and quarterly submissions for income‑tax reporting from April 2026. To comply, businesses must use HMRC‑recognised software; cloud accounting packages are designed for this purpose and offer increased accessibility, security and automation. For production companies, using cloud software early means there is time to train the team and integrate systems before the deadline.

Industry adoption is accelerating

Market research suggests that by 2025 most of the accounting firms worldwide will use cloud platforms. This wave of adoption reflects both client expectations and competitive pressure. Clients increasingly demand real‑time advisory services and expect that their accountant will provide insights, not just historical data. Production companies that continue to rely on desktop software run the risk of falling behind as partners, clients, and suppliers begin to work in the cloud.

Real‑time data drives better decisions

Cloud tools for production companies in the UK deliver real-time access to financial data, allowing managers to monitor budgets, cash flow, and project costs on any device. Immediate insights are vital on a film set, where last-minute changes, overtime, or additional equipment can blow a budget. With cloud accounting software, every transaction is recorded and updated instantly, giving producers an up‑to‑date picture of each project.

Collaboration is seamless

Production work is inherently collaborative. Directors, producers, finance teams and location managers all need access to the same data. Cloud platforms allow multiple users to view and edit financial records at the same time, whether they are in the office, on-site, or travelling. Instead of waiting for paper invoices or spreadsheets, documents can be scanned, categorised and approved within minutes. Finance leaders report that cloud technology improves collaboration across the finance function.

Automation reduces manual tasks

Cloud accounting removes repetitive data entry. Automated workflows handle invoice creations, expense claims, and bank reconciliations. For example, receipts can be photographed on a mobile phone, and the data extracted automatically. AI tools sort expenses, track spending and even predict cash flow. As a result, accountants and production managers can focus on analysis and decision‑making rather than data entry.

Cost efficiency and scalability

Traditional accounting systems require upfront licensing, server maintenance and IT support. Cloud applications deliver 4× the return on investment compared with on‑premises solutions. Subscription pricing means production companies pay only for what they use, with the ability to scale up when a major project starts and scale down afterwards. Automatic software updates ensure that the system is always current, avoiding the fees and downtime associated with manual upgrades.

Compliance and security

Cloud accounting software is built with compliance in mind. Leading systems incorporate robust security measures, encryption and backup facilities. For UK businesses registered for VAT, cloud software can handle digital record‑keeping and direct submission of VAT returns to HMRC, helping firms meet Making Tax Digital requirements. Digital records reduce errors and ensure that tax submissions are accurate; automated compliance functions within cloud platforms also manage payroll and tax calculations.

Specific Advantages Of Cloud Tools For Production Companies In UK

Better project budgeting and cost tracking

Each production has unique budgets, labour costs and timelines. Cloud platforms provide real‑time visibility across multiple projects. Managers can track actual spending against the budget, monitor costs per scene, and identify overspends immediately. Because data is accessible from anywhere, producers can approve purchases quickly, preventing delays in filming.

Streamlined payroll and contractor management

Production crews often include contractors, freelancers and union workers. Cloud accounting integrates with payroll systems to automate calculations, deductions and national insurance contributions. Timesheets can be submitted digitally, reducing paperwork and ensuring timely payments. Automated payroll also helps companies stay compliant with UK employment law and HMRC reporting requirements.

Integration with production management tools

Modern cloud accounting platforms for commercial production companies connect with scheduling, asset‑management and invoicing tools commonly used in the film industry. For example, expenses captured in the on‑set software feed directly into the accounting ledger, eliminating the need to re‑enter data. Multi‑currency support is useful for international shoots, allowing immediate conversion and consolidation of costs.

Improved cash flow and financing

Production companies often rely on stage payments from clients or grants, such as UK film tax relief. With real‑time accounting data, they can forecast cash flow accurately and prepare timely tax credit claims. Instant access to bank feeds also allows producers to see when invoices are paid, enabling better management of creditors and debtors. Investors and lenders increasingly expect real‑time financial reporting; cloud accounting meets this expectation.

Remote and hybrid working

Production schedules may involve travel, remote working or cross-border teams. Cloud accounting software supports this lifestyle. Team members can work on laptops, tablets or phones, switching between devices without losing data. Expenses can be submitted while travelling, and approvals happen quickly, reducing bottlenecks.

Apex Accountants Case Study – Transforming a Production Company

Client: A medium-sized commercial production company in London specialising in TV ads and online campaigns. The company managed around 15 projects a year with budgets ranging from £50,000 to £500,000. They used desktop software for accounting and spreadsheets for project budgets. Paper invoices were passed between departments, causing delays. They were also concerned about the upcoming Making Tax Digital obligations.

Challenges

Limited visibility: The finance manager could not see up‑to‑date project costs until month‑end, making it difficult to control overspend.
Poor collaboration: Producers and line managers had to email spreadsheets back and forth. Approvals were slow, and invoices sometimes went missing.
Manual data entry: Accountants spent many hours inputting receipts and reconciling bank statements.
Compliance risk: The company lacked digital records that would meet HMRC’s MTD requirements.

Our solution

Apex Accountants proposed a cloud‑based accounting system tailored for production companies. We migrated their financial data, integrated the platform with their project‑management software and set up bank feeds. We designed project codes within the system to track costs by production. Staff received training on capturing expenses using mobile Approval workflows and devices were created for processing invoices and purchase orders. We also configured the software to produce MTD‑compliant digital records and quarterly tax submissions.

Results of

Real‑time project dashboards: Producers could monitor budgets, commitments and actual spend from any location. Overspend alerts were triggered automatically, enabling swift corrective action.
Faster approvals and payments: Invoices were scanned and routed electronically. Approval times dropped from several days to a few hours. Contractors were paid faster, improving relationships with crew members.
Reduction in manual work: Automated bank reconciliation and AI‑powered receipt capture eliminated approximately 60% of the finance team’s manual data entry. Staff redeployed their time to forecasting and strategic analysis.
Improved compliance: Digital record‑keeping ensured readiness for MTD. VAT returns were submitted directly from the software, reducing the risk of penalties. The system also handled payroll and national insurance calculations automatically, ensuring HMRC compliance.
Better cash flow management: With real-time information on unpaid invoices and bank balances, the company optimised its cash flow by avoiding short-term borrowing. Regular reports to investors improved transparency and confidence.

The client now views cloud accounting not merely as a software upgrade but as a strategic asset. They can make data-driven decisions during production, collaborate seamlessly and meet their compliance obligations with ease.

Steps for Adopting Cloud Accounting For Commercial Production Companies

Assess your needs. Map your current accounting processes, project budgeting and payroll requirements. Identify pain points such as slow approvals or lack of real‑time information.
Choose an MTD‑compliant platform. Select HMRC‑recognised cloud software that offers real‑time dashboards, multi‑user access and integration with production tools. Consider features such as automated bank feeds, project tracking, payroll modules and mobile expense capture.
Plan the migration. Work with accountants experienced in the production sector to migrate your data. Please tidy up the chart of accounts and set up project codes. Ensure that your budgets and outstanding invoices are imported accurately.
Integrate and train. Connect the cloud accounting platform to your payroll systems, production management software, and bank accounts. Training producers, finance staff, and project managers on how to use the system. Provide guidance on capturing receipts and using approval workflows.
Test compliance workflows. Run trial submissions for VAT and income tax to ensure the system produces accurate digital records and MTD‑compliant reports. Adjust settings as needed.
Monitor and adapt. After going live, monitor usage and gather feedback from the team. Adjust workflows, dashboards and permissions. Use the system’s analytical tools to identify trends and opportunities.

Conclusion

By 2026, cloud accounting platforms for commercial production companies will be the norm rather than the exception. The UK’s Making Tax Digital deadlines, widespread industry adoption, and client demand for real-time insights all point to the same conclusion: commercial production companies need to embrace the cloud. Cloud accounting offers real-time financial visibility, seamless collaboration, automation, and cost efficiencies. It is scalable and secure, and it is ready for the digital tax era. As our case study shows, adopting cloud accounting can transform production operations, freeing managers from manual tasks and providing them the information they need to keep projects on budget and compliant.

At Apex Accountants, we are here to guide your production company through this transition. By acting now, you can be ready for 2026 and enjoy the competitive advantages that come from better data, better collaboration and better decisions. Contact us today to discuss how we can support your move to cloud accounting.