Understanding equipment claims for video production contractors
As a video production contractor, your equipment represents both your creative toolkit and significant business investment. Understanding what equipment you can claim for tax purposes is crucial for managing your cash flow and reducing your tax liability. The UK tax system offers several mechanisms for claiming relief on business equipment, primarily through capital allowances and the annual investment allowance. Many contractors miss out on legitimate claims simply because they're unaware of the rules or find the record-keeping overwhelming.
When considering what equipment can video production contractors claim for tax purposes, it's essential to distinguish between revenue expenses (day-to-day running costs) and capital expenses (long-term assets). Equipment purchases typically fall into the capital category, meaning you can't simply deduct the full cost from your profits in the year of purchase. Instead, you claim capital allowances, which provide tax relief over several years through writing down allowances or potentially immediately through the annual investment allowance.
Using dedicated tax planning software can transform how you manage these claims. Rather than struggling with spreadsheets and manual calculations, modern platforms automatically track your equipment purchases, calculate your allowances, and ensure you claim everything you're entitled to while remaining fully HMRC compliant.
Essential video production equipment eligible for tax relief
So what specific equipment can video production contractors claim for tax purposes? The range is extensive and covers both obvious and less obvious items. Cameras, lenses, lighting equipment, audio recording gear, and editing computers all qualify. More specialized equipment like drones, gimbals, sliders, and monitors are also claimable. Even supporting equipment like tripods, camera bags, and memory cards can be included if used exclusively for business purposes.
For the 2024/25 tax year, the main rate for writing down allowances is 18% on most plant and machinery, while special rate pool items (including integral features in buildings) receive 6%. However, most video production equipment qualifies for the much more beneficial annual investment allowance (AIA), which provides 100% first-year relief on qualifying expenditure up to £1 million. This means if you purchase £5,000 worth of camera equipment, you can potentially deduct the full £5,000 from your taxable profits in the same year.
It's worth noting that equipment used partly for business and partly personally requires apportionment. If you use your editing computer 80% for business and 20% personally, you can only claim 80% of the cost. Our tax calculator can help you work out the exact tax saving from different apportionment scenarios.
Capital allowances versus revenue expenses
Understanding the distinction between capital and revenue expenses is fundamental when determining what equipment can video production contractors claim for tax purposes. Capital expenses refer to assets with a lasting value that you keep to use in your business - cameras, computers, lighting kits. Revenue expenses are day-to-day running costs that don't create lasting assets - memory cards, replacement batteries, minor repairs.
The good news is that from April 2026, the system is simplifying with the introduction of full expensing for companies. For sole traders and partnerships, the AIA remains the primary mechanism for immediate relief. The current AIA limit of £1 million is scheduled to remain until 31 March 2026, providing significant scope for video production contractors to invest in equipment while minimizing their tax burden.
Keeping accurate records is essential, particularly for high-value items. You should maintain purchase receipts, serial numbers, and details of business use percentage. This is where tax planning software becomes invaluable, as it provides a structured system for capturing this information and generating reports for your self assessment return.
Software, subscriptions, and intangible assets
Beyond physical equipment, video production contractors should consider what intangible assets they can claim. Editing software like Adobe Creative Cloud, DaVinci Resolve Studio, or Final Cut Pro represents significant ongoing costs that are fully deductible. Similarly, cloud storage subscriptions, stock footage memberships, and music licensing platforms all qualify as revenue expenses that can be deducted from your profits in full.
The rules around software can be complex - perpetual licenses are generally treated as capital expenditure (eligible for AIA), while subscription services are revenue expenses. If you develop custom software or purchase specialized plugins, these may qualify for Research and Development (R&D) tax credits if they represent technological advancement, though the criteria are specific and you should seek professional advice.
Tracking these ongoing subscriptions manually can be time-consuming. A comprehensive tax planning platform can automatically monitor your software expenses and ensure you claim the appropriate relief each tax year.
Vehicle claims for location work
Many video production contractors overlook vehicle expenses when considering what equipment can video production contractors claim for tax purposes. If you use a vehicle for business purposes - traveling to shoots, transporting equipment, meeting clients - you can claim either using simplified mileage rates (45p per mile for first 10,000 miles, 25p thereafter) or by tracking actual costs and claiming business proportion.
For contractors using vehicles specifically adapted for video work (equipped with custom storage, power systems, or filming platforms), these modifications may qualify as capital expenditure. Similarly, insurance, servicing, and repairs can be apportioned based on business use. Keeping detailed mileage logs is essential, and again, technology can simplify this process significantly compared to manual record-keeping.
The choice between mileage and actual costs depends on your specific circumstances. Our tax planning tools can model both scenarios to determine which approach delivers better tax outcomes for your situation.
Practical steps for maximizing your equipment claims
To ensure you're claiming everything you're entitled to, start by conducting a comprehensive equipment audit. List all equipment purchased during the tax year, noting purchase dates, costs, and business use percentages. For existing equipment, review whether you've claimed all available writing down allowances in previous years.
Plan significant equipment purchases strategically around the tax year end. If you're approaching the £1 million AIA threshold, timing purchases across tax years might be beneficial. Similarly, if you expect your profits to be higher next year, deferring major purchases might yield greater tax savings.
Maintain meticulous records - not just receipts, but also evidence of business use. Photographs of equipment in use, client contracts referencing specific gear, and mileage logs all support your claims if questioned by HMRC. Consider using tax planning software that includes document storage features to keep everything organized in one place.
Finally, remember that the rules around what equipment can video production contractors claim for tax purposes evolve. The transition to full expensing for companies from 2026 represents a significant change that may affect how you structure your business. Staying informed about these developments ensures you continue to optimize your tax position as regulations change.
How technology simplifies equipment tax claims
Managing equipment claims manually requires significant administrative effort and carries risk of errors. Modern tax planning solutions transform this process through automated tracking, real-time calculations, and intelligent reminders. Instead of wrestling with complex capital allowance calculations, the software does the heavy lifting while you focus on your creative work.
These platforms typically offer features specifically designed for contractors, including equipment depreciation tracking, AIA utilization monitoring, and scenario planning for major purchases. The ability to model different purchasing decisions against your projected income helps you make tax-efficient investment choices. Real-time tax calculations mean you always know your current tax position and can plan accordingly.
For video production contractors wondering what equipment they can claim for tax purposes, the combination of understanding the rules and leveraging appropriate technology represents the most effective approach. By systematizing your record-keeping and calculations, you ensure maximum claims while minimizing administrative burden and compliance risk.
If you're ready to streamline your equipment claims and optimize your tax position, explore how our platform can transform your tax planning approach. The time saved on administrative tasks alone often justifies the investment, quite apart from the tax savings achieved through more accurate and comprehensive claims.
