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Video Games Tax Relief

Receive cash back through a video games tax credit

Video Games Tax Relief (VGTR) allows UK game developers to claim back 20% of their production costs.

To be eligible for Video Games Tax Relief, the game must pass the BFI cultural test and your company must be responsible for the majority of the planning, designing, developing and testing of the game.

What is Video Games Tax Relief (VGTR)?

VGTR is a government scheme that allows UK game developers to apply for tax relief funding from HMRC.

The computer game must qualify as being British under the Video Games Cultural Test which is administered by the British Film Institute (BFI). Video Games Tax Relief is part of the Creative Sector Tax Relief which also covers film production, animation and high-end television. Video Games Tax Relief is also known as the UK Games Tax Relief Scheme.

How to make a successful VGTR claim

To be eligible for Video Games Tax Relief, your company must be responsible for the majority of the planning, designing, developing, testing and producing of a game.

This company will be called the Video Games Development Company (VGDC). 

At least 25% of your eligible costs must be incurred in the European Economic Area.

If two or more companies are working on the same game, only one may claim for VGTR.

Therefore it’s important to establish which company is the Video Games Development Company (VGDC) and will be making the claim.

playing a computer game

What could your company receive as a cash payout?

Video Games Tax Relief is worth up to 20% of the core production costs of a game.

The Video Games Development Company receive tax relief based on the lower of either (a) the EEA expenditure or (b) 80% of the core expenditure. 

Loss making games can surrender the loss for a payable tax credit at a rate of 25%.

The surrendable loss is the lower of either (a) the available loss or (b) the qualifying expenditure available.

What makes us different

With Metric you’ll be best placed to make a successful VGTR claim because we have a well-established track record of helping Innovative companies, so you’ll receive expertise and advice that’s 100% relevant to your business.

We are Tech specialists

we only work with ambitious, technology companies and scalable businesses growing at least 25% per annum (either in terms of revenue or employees). This means that we are perfectly placed to help with your R&D Tax Credit application process, and beyond.

We are chartered accountants

What’s more, as we are a chartered accountancy firm, registered with the Institute of Chartered Accountants in England and Wales, you can have faith that we not only have knowledge and experience of your ever-changing business sector but financial acumen as well.

We charge fixed fees

We also operate on a fair, transparent, fixed fee basis, which avoids problems later on.

What our Clients say

Brendan O'Toole

Brendan O’Toole, CEO

“We’ve been working with Metric for several years now and through that time have received a great many suggestions, recommendations and counselling that have brought multiple economic benefits to our business.  They are true team players.”

lookiimedia logo
Read how we helped a Tech software company claim cash rebates (click to open)

When the director, Brendan O’Toole, first met Metric, the software products were still under development, the Company itself was in its infancy and there was no strategic or financial group structure.

Brendan asked Metric to suggest how to best structure the business. Metric, utilising their practical and commercial experience, was able to provide recommendations and advice before the first products were launched.

This has proven to be a very useful exercise for Lookimedia. Changing the structure at a later stage would have been very painful and complicated, something that Brendan really appreciates:

“We’ve been working with Metric for several years now and through that time have received a great many suggestions, recommendations and counselling that have brought multiple economic benefits to our business.  They are true team players.”

Metric’s help was not limited to strategic advice. Metric provided specialist tax advice as well.

During the software development phase, Metric has supported Lookiimedia with two successful R&D tax credit claims. Metric, which has specialist R&D tax claim professionals and undertakes all the work at its Covent Garden office, is able to undertake the work alongside the preparation of the financial statements, making the process extremely efficient and effective. 

Would you recommend Metric Accountants?

We asked Brendan whether he would recommend Metric to other tech and high growth companies. Here’s what he said:

“Absolutely. At Metric they know what they’re doing, work very hard to please and help you to succeed.

Brendan also had some excellent thoughts on how to get the most out of your relationship with Metric (and, in fact, other professional advisors):

“Take time to sit down with Metric and fully brief them about yourself, your business aspirations, and how your business ticks. Be open, share information. Metric are then in a better position to help you scope out your accounting systems, procedures and key goals for the year or two ahead, in particular picking up on any issues or opportunities that you might otherwise overlook.”

What does it cost and what’s involved?

We provide a complete Video Games Tax Relief service, which includes completion of all of the steps set out below.

1

We will have a meeting to understand your business and your VGTR claim to enable us to prepare a successful claim.  We will discuss how we would work with you, what will be involved and agree our fees for making a successful claim.

2

To submit a VGTR claim we need to submit an application to the BFI called an interim certification, this takes up to six weeks to receive.

3

We’ll prepare a technical document explaining about your claim and your Video Game and prepare tax schedules required.

4

We will submit the tax return with the interim certification and liaise with HMRC in case they have any questions.

5

If a VGTR rebate is due, you should receive a payment from HMRC approximately 60 days after the claim has been submitted.

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What makes us different

We share your ethos

For many, the tech startup scene is about lifestyle choice and purpose. We feel the same way.

Involved in the disruptive community

We actively seek to interact and learn from the disruptive community in order to improve the ways in which we help.

Value for money

We strive to provide quality advice which is good value for money and on fair payment terms.

Our strong professional network

Because we are specialists, we have developed strong relationships with a range of key players in our sector.

If you want to find out more why not give us a call and book your free, no-obligation consultation today?

Ready to get in touch?

Katrine and James, Metric

Unlike many accountancy firms, we have the specialist knowledge and experience to provide the tailored advice that your company needs.

We’re confident that our experience of helping Award Winning companies will ensure that you eliminate much of the pain – and costs – associated with operating your technology or high growth company.

In order to find out more and to book your free 45 minute consultation, contact us on 0203 542 4990 or get in touch via our contact us page.