CREC081400 - Claims: additional information form: section 5 - expenditure reporting

After completing specific questions for every individual production (CREC081300), this sub-section then asks for expenditure totals for each type of relief or credit being claimed. This means that if the company is claiming for multiple productions in the same category, the company must add up the figures for all those productions to arrive at the amounts required by the form.

For example, if a company is claiming the Audio-Visual Expenditure Credit (AVEC) on three TV programmes (two children’s and one animated), and also Animation Tax Relief (ATR) on one programme, then they should be completing this AVEC sub-section twice: once for the children’s programmes, and once for the animated programme. They also need to complete the calculation sub-section in section 4 to report the data for their ATR claim.  When they come to this part for AVEC (children’s TV), they should be adding together the expenditure and credit amounts from both the children’s TV programmes.


For a claim to Video Games Expenditure Credit (VGEC), and for each category of AVEC being claimed, the following are required:

  • Calculations upload

This is an opportunity for companies to upload the remaining mandatory supporting evidence:

- a computation showing how the amount of credit has been calculated for each production
- a breakdown of production expenditure for each production, showing the distinction between core/non-core expenditure, UK/non-UK expenditure, and any excluded expenditure.

HMRC has produced templates which companies can complete and submit to help them with this requirement. These templates can be downloaded through the form itself, or obtained by emailing creative.industries@hmrc.gov.uk or the BFI.


  • Total expenditure for the period

The total expenditure for the period is the amount of costs that have been brought into account for the period when calculating the profits of the trade (s1179BB). It will include both core and non-core costs, and both UK and non-UK expenditure. It is the amount given by either s1179BB(2)(a) or s1179BB(3)(a), depending on whether this is the first period of account for the trade. It is given by box CP7 on the HMRC template for each individual production.

The applicant should calculate this amount for all productions claiming under the expenditure credit category and add them together to give a combined total.


  • Total core expenditure for the period

This should be the amount of relevant production expenditure brought into account for the period. It includes both UK and non-UK expenditure. Core expenditure is:

- Expenditure on the pre-production, principal photography, or post-production of a film or programme (s1179DS).
- Expenditure on designing, producing or testing a video game, but not designing the initial concept, nor debugging nor carrying out maintenance in connection with a completed video game (s1179FK).

Any amounts of excluded expenditure should not be included:

- Expenditure in respect of which the company could claim a Research and Development (R&D) relief or credit (s1179DT and s1179FL)
- Connected party profit (unless the transaction is at arm’s length) (s1179DU and s1179FM)

This amount for each individual production is on the HMRC template in box CP3.

The applicant should work out this amount for all productions claiming under the expenditure credit category and add them together to give a combined total.


  • Total UK core expenditure for the period

This box requires the amount of relevant production expenditure brought into account for the period that is also UK expenditure. This is expenditure where all the following applies:

-  It is ‘core expenditure’ as per s1179DS or s1179FK
- It is not ‘excluded expenditure’ as per s1179DT, s1179DU, s1179FL, or s1179FM. This applies where expenditure would also qualify for a Research and Development relief or credit, or it is connected party profit not at arm’s length.
- It is on goods or services used or consumed in the UK (s1179AB(1)).

A breakdown between core and non-core expenditure, and also between UK and non-UK expenditure, should have already been attached to the form.

The amount of UK core expenditure for the period, for each individual production, is given by box CP10 on the HMRC template.

The applicant should work out this amount for all productions claiming under the expenditure credit category and add them together to give a combined total.


  • Amount of audio-visual expenditure credit for the period

This is the amount of credit to which the company is entitled under this category for the period. It is the amount given by Step 5 of the amount of expenditure credit calculation (s1179CA). It is determined by multiplying the qualifying expenditure for the period (Step 4) by the applicable credit rate. It is not the amount payable to the company, nor the amount of credit remaining after carrying out the credit redemption steps in s1179CC. It is the amount which should be added to the company’s taxable income.

The rates of expenditure credits are:

- AVEC – Films, High-end TV programmes: 34%
- AVEC – Children’s TV programmes, Animated films and TV programmes: 39%
- VGEC – 34%

The applicant should work out this amount for all productions claiming under this expenditure credit category and add them together to give a combined total. If the applicant is using the HMRC template, the amounts in box EC2 should be added together.