Successful IFTC Compliance Check
– Written by Callum Axon – Tax Assistant Manager.
Following the introduction of the new enhanced Independent Film Tax Credit (IFTC), available for claims submitted from 1 April 2025, the value of the relief for films that meet the additional criteria has increased significantly to a 53% gross tax credit. As expected with any newly introduced scheme of this scale and value, this has been accompanied by a heightened level of HMRC scrutiny and compliance activity.
A client of Streets submitted an IFTC claim shortly after the introduction of the new scheme and subsequently received a formal HMRC compliance check. While compliance checks can be claim specific and targeted or a more generalised claim check, they can place pressure on production companies and finance teams, particularly when new relief legislation has been recently introduced.
Our Approach
Streets Innovation supported the client by responding promptly and comprehensively, drawing on the detailed technical and evidential foundation already embedded within the original claim preparation. Our creative relief specialist Callum Axon prepared a structured response that clearly aligned the claim to the requirements of the new IFTC guidance, ensuring the supporting documentation and narrative could be reviewed efficiently and with confidence.
Outcome
Due to the robustness and clarity of the original submission:
- The compliance check was resolved in a single comprehensive response within one month of the initial HMRC letter.
- The client received confirmation from HMRC that full credit has been approved for release, which was received by the client within two weeks of HMRC acknowledging Streets’ response.
Why This Matters
As creative industry tax reliefs continue to evolve and new schemes are introduced, it is increasingly important that claims are prepared with optimisation and compliance readiness in mind. The enhanced IFTC presents a valuable opportunity for qualifying productions, but the increased headline value further highlights the importance of complete technical justification underpinned by thorough evidence preparation to support the claim.
Streets Innovation combines expertise in creative sector reliefs with a rigorous approach to claim preparation, helping clients maximise available relief while providing peace of mind that their claim is fully justified and readily defensible in the event of an enquiry.
How We Can Help
If your production company is planning to claim IFTC, or if you have received an HMRC compliance check and would like specialist support, Streets Innovation can help you navigate the process with confidence. Get in touch to discuss your creative tax relief position and how we can support your next claim please see the link below for the team’s Calendly. https://calendly.com/streets-innovation/enquiry-resolution-service
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