Film Company

[Christian Lett]

Does anyone out there have their own company devoted to movie making? It's something I've been thinking about for a while but it's a big step for someone with no business experience.

Without getting too political, I'm also concerned about the Government's (and EU's) proposed tax laws. I don't know much about politics but a (rather scary) document found at http://www.kc3ltd.co.uk/~dt/tax.htm lists newspaper articles detailing what they're planning to do in order to harminise taxes in Europe. One of these aims to abolish tax breaks for film companies and another would mean a reversal of support for the film industry. Typical!

Basically, all I'm asking is whether these proposals might force small companies registered as film companies out of business. Do you have registered film companies? Does having a limited company have any benefits to this business?

Please let me know your views and experiences.

Thanks,



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Christian J. Lett
clett@nationalexpress.co.uk

[wildlink]

Hello Christian,

I can't answer about tax-breaks to the film industry...and judging by the lack of replies, nor can anyone else :)

But I do run a couple of LTD CO.'s for my IT consultancy and others and read the webpage you indicated. Scary isn't it?

Is there any benefit in having a LTD CO? Yes, reclaiming VAT. Even something as straightforward as DV filming and editing requires a load of gear - expensive gear - being able to deal trade and then claim back the VAT makes a difference.

I'll worry about tax harmonisation when it happens. Probably by moving overseas. In the IT field there is a massive skills shortage, within the next four years nearly 50% of the workforce will be on contract...so lets kill the contract market? Doh!

David.

[tim]

Hi, Christian,
I think there are still benefits to be had by trading through a Ltd Company.
I am a retired Chartered Accountant and in my time in practice used to advise many clients on the very subject of the pros and cons of incorporation.
The first huge benefit can be limited liability although this is sometimes a bit of a red herring.
There are more formalities connected with the aadministration of a limided company and an annual audit and accounts and reports have to be prepared in a certain way. You would almost certainly require professional advice and help.
Whether or not you will be able to reclain input VAT (and you will also hsve to charge VAT on your services if you are registered), will depend on your total annual turnover and NOT whether your business is incorporated.
If you would like to e-mail me I may be able to give you some more advice.
Best wishes,
Tim