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Myriad Associates' Barrie Dowsett on UK R&D tax credits
Key insights
6 takeaways- 01The UK government provides a 20 percent subsidy toward game production costs through R&D tax credits and the Video Games Tax Relief (VGTR) program.
- 02Beyond tax incentives, studios can access additional liquidity for software development through grants from Innovate UK and European initiatives like Horizon 2020.
- 03Tax relief is claimed retrospectively, meaning developers must secure private investment to fund the initial development cycle before accessing government subsidies.
- 04Independent developers often struggle with the administrative complexity of navigating requirements between the British Film Institute and HM Revenue and Customs.
- 05Specialized consultancy services are frequently required to manage the technical documentation and record-keeping necessary to maximize tax relief claims.
- 06Outsourcing the claims process to tax experts allows studios to prioritize core game design and production over bureaucratic compliance.
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Transcript
I'm Barry Doucette's I'm the chief executive officer of myriad associates okay and what's the company all about what are you guys we help maximize and secure public funding for innovative businesses game developers is one of our key to key target audiences okay so I've been talking to a lot of indie developers today guys who are working full-time jobs and then doing it the weekends out love basically absolutely what is the best way in your opinion if you're an indie developer how do you get funding to turn something that's essentially a hobby into a full-time career absolutely there's a couple of options one is grant funding money available from the UK which is innovate UK there's European funding from horizon 2020 but the warmest is very attractive for indie developers is video games tax relief and that in essence gives you 20 percent support towards your production
costs but you claim that retrospective move so unfortunately you've got to get investors on board to give you some money to have you along the journey and but it does do risk that investment because twenty percent is coming from the government public funded money do you think this information is public knowledge or do you think there are a lot of people who are kind of missing out on quite a lot of money they can potentially be collecting back do you need to be an expert in the field to know this stuff for well I think the first thing to say is the marketing from the government and hating revenue in custom could be a lot better and hence its people like us that there to help with that process you know and to make aware of the to claim we do certainly help the process we take it away from the developer and we will do a full service proposition so we'll focus on spending many many hours getting their claim through from them speak to british film institute's pukes peak to hate and reading customs whilst they focus on developing great games right and so if they were since there was a strong new developer out there looking for money
and they were to come to you what's the one bit of advice you would offer that what's the best way to kind of get on the ladder in this stuff absolutely I say the first thing to do is talk about video game production and their costs come to us we're taking through that journey and what happened to secure the funding that they're entitled to right and we're here at the poker game o'clock conference in 2016 why come to a place like this was the benefit for you guys to turn where we specialize in software development type claims and that includes video games tax relief and we have the technical know-how accepted to deliver that so yeah we are probably the Harley Street of tax specialist for video games industry so you're making yourself available to developers here absolutely skin and free advice and support any shape or size it means small developers to large independence
Summary
The United Kingdom offers significant financial support for game developers through R&D tax credits and the Video Games Tax Relief (VGTR) program. These initiatives are designed to foster innovation by providing a 20 percent subsidy toward production costs. While these programs serve as a vital mechanism for de-risking private investment, many independent developers remain unaware of their eligibility or find the administrative requirements of the application process prohibitive. Consequently, specialized consultancy services are often necessary to navigate the complex interactions between the British Film Institute and HM Revenue and Customs.
The primary challenge for indie developers transitioning from hobbyist projects to full-time careers is securing initial capital. Because tax relief is typically claimed retrospectively, developers must first obtain private investment to fund the development cycle. Once production is underway, the government-backed tax relief acts as a critical financial buffer, effectively lowering the barrier to entry for small studios. Beyond tax relief, additional funding avenues include grants from Innovate UK and European-level initiatives such as Horizon 2020, which provide further liquidity for innovative software development.
Effective utilization of these tax incentives requires a structured approach to record-keeping and technical documentation. By outsourcing the claims process to experts, developers can focus their resources on game design and production rather than navigating bureaucratic compliance. Engaging with specialized tax advisors early in the development lifecycle ensures that studios maximize their entitled funding, ultimately strengthening the financial viability of the UK’s independent gaming sector.
