Financial Wellbeing

When it comes to money, it can be a source of stress for many of us, especially if you’re working independently in the games industry.

Lots of us worry about money from time to time – I know my wallet struggles when a new game comes out – but for some people, the stress and anxiety caused by financial concerns can have a serious impact on their well-being. And for those who already struggle with poor mental health, worrying about money can make existing problems even worse.

Although stress caused by money worries can affect anyone, research suggests younger people are particularly at risk. Nearly three quarters of Brits aged 18-34 have at some point experienced mental health or well-being issues linked to money. Common signs include changes in mood, trouble sleeping and feeling anxious or stressed.

Learn more about money and mental health here.

Money and mental health have various links and intersections, with almost half of people in problem debt in the UK also having a mental health problem.

In fact, Money and Mental Health policy institute have found that there are several demographics that affect our relationship with money and mental health, including marginalised ethnicities, age and gender all playing a part. Discrimination in healthcare settings, accessing financial aid and stigma (e.g. in gendered expectations for men to talk more openly about mental health) can all significantly impact how we deal with financial anxiety.

It’s important to keep the above in mind when supporting others, who may experience barriers that are not present for more privileged people.

Plus Accounting – Finance Resources

We’ve teamed up with Plus Accounting to provide you with key information on finances to ease the anxiety when it comes to crunching numbers.

The full guide by Plus Accounting can be viewed here, and learn about a number of finance-related knowledge, from understanding finance terminology and tax returns, to VAT and funding support.

Please note: Though this guide is designed for the video games industry, there is a lot of universal knowledge within it, including details on personal tax and claiming tax back – content creators this is helpful for you!

Raising Finance for your Indie Prototype

One of the key issues facing start-up game developer companies, is how to raise the finance needed to develop a prototype. A fortunate few have the finances to develop their prototype. The majority need to raise finances externally to enable them to afford the costs of developing a prototype, with the hope that this leads on to obtaining a deal with a publisher.

The first step in raising the finance you need is preparing a business plan. A business plan is a written document that describes your business, its objectives, strategies, sales, marketing and financial forecasts. A business plan helps you to clarify your business idea, identify potential problems, set out your goals and measure your progress.

A major part of your business plan will be working out how much capital you require to develop your prototype. You will need to consider the budget required to cover a wide range of costs including equipment, office rent, wages, sub-contractor charges and day to day running costs of the business, while the prototype is being developed and assuming a deal is then agreed with the publisher, for the period the game is under development. At the prototype stage of development it is important that you aim to keep costs to a bare minimum.

Once your business plan is ready, it is time to start trying to raise funds. The following are a number of options you could try:

• Borrow from family and friends
• Approach angel investor groups or Venture Capitalists
• Try approaching individual investors who may have an interest in your prototype
• Use personal savings, which will at least demonstrate your commitment
• Apply for business loans
• Use credit cards
• Do freelance work on the side
• Seek workers who are willing to volunteer their time for free or are willing to work for a revenue share should the game be a success
• Apply to the UK Games Fund
• Apply to Creative England
• Apply to the Art Council

Video Games Tax Relief (UK)

Video Games Tax Relief (VGTR) was introduced in April 2014, and is part of the UK government backed creative industry tax relief. Learn more about eligibility and details here. Please note, that in Spring 2023, there were plans announced by the government to introduce ‘Video Games Expenditure Credit’, which is set to replace the VGTR within 2023.

Key points

• The new games credit will have a rate of relief of 34% on 80% of ‘qualifying expenditure’.
• Expenditure made in the European Economic Area is no longer allowable qualifying expenditure.
• The £1m per game cap on subcontracting costs no longer applies.