Animation Tax Relief / BFI audit report

Animation Tax Relief / BFI audit report

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I have a client who has created their own animation which meets all the criteria to benefit from the new Animation Tax Relief (ATR).

As far as I can see, ATR can be claimed based on a partially complete project by getting the BFI to issue interim certification. This seems fairly straightforward.

However, to get final certification from the BFI on the completed project, the BFI require an 'Accountants Report' (which actually needs to be done by a registered auditor according to ICAEW).

The cost of getting a third party registered auditor involved will almost wipe out all of the benefit of claiming ATR so it almost seems to be not worth claiming, which seems like a real shame for the client.

Does anyone have any practical suggestions?

I was thinking of claiming the interim certification only and then not seeking to get final BFI certofication, but HMRC mentioned to me that if the company did not seek to get final certification then they could potentially claw back ATR on the previous interim claim. Seems a bit harsh!

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By mdcallen
17th Feb 2015 10:19

accountants report

This is only required if points are claimed under certain categories for the BFI certification. You should check if your client's production will qualify without claiming points under these categories.

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By Carl London
17th Feb 2015 15:04

Fantastic - thanks for pointing this out!

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