{"id":6131,"date":"2024-12-20T10:02:00","date_gmt":"2024-12-20T10:02:00","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=6131"},"modified":"2024-12-20T11:27:42","modified_gmt":"2024-12-20T11:27:42","slug":"what-tax-reliefs-can-businesses-in-the-creative-industry-claim","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/what-tax-reliefs-can-businesses-in-the-creative-industry-claim\/","title":{"rendered":"What tax reliefs can businesses in the creative industry claim?"},"content":{"rendered":"

To support the vibrant sector that is the creative industry, the Government offers an array of tax reliefs and expenditure credits.<\/span>\u00a0<\/span><\/p>\n

<\/p>\n

If you are a company in the creative industry, here is how you can tap into these incentives.<\/span>\u00a0<\/span><\/p>\n

What are creative industry tax reliefs?<\/span><\/b>\u00a0<\/span><\/h3>\n

Creative industry tax reliefs are designed to reduce your Corporation Tax liability or even provide a payable tax credit for qualifying companies.\u00a0<\/span>\u00a0<\/span><\/p>\n

These reliefs are available for businesses involved in producing films, television, video games, theatrical productions, and more.<\/span>\u00a0<\/span><\/p>\n

The benefits include:<\/span>\u00a0<\/span><\/p>\n

    \n
  • Increasing the amount of allowable expenditure<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
      \n
    • Reducing the amount of Corporation Tax payable<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
        \n
      • Surrendering losses for a payable tax credit<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

        What reliefs can you claim?<\/span><\/b>\u00a0<\/span><\/h3>\n

        Depending on your business\u2019s focus, you might be eligible for one or more of the following:<\/span>\u00a0<\/span><\/p>\n

          \n
        • Film Tax Relief (FTR)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
            \n
          • Animation Tax Relief (ATR)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
              \n
            • High-end Television Tax Relief (HTR)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                \n
              • Children\u2019s Television Tax Relief (CTR)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                  \n
                • Video Games Tax Relief (VGTR)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                    \n
                  • Theatre Tax Relief (TTR)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                      \n
                    • Orchestra Tax Relief (OTR)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                        \n
                      • Museums and Galleries Exhibition Tax Relief (MGETR)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                        What about expenditure credits?<\/span><\/b>\u00a0<\/span><\/h3>\n

                        As of 1 April 2024, certain tax reliefs transitioned into expenditure credits. These include:<\/span>\u00a0<\/span><\/p>\n

                          \n
                        • Audio-Visual Expenditure Credit (AVEC)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                            \n
                          • Video Games Expenditure Credit (VGEC)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                            These credits provide a taxable amount based on allowable expenditure, which can offset your Corporation Tax liability. Any remaining amount may even be refunded as a payable credit.<\/span>\u00a0<\/span><\/p>\n

                            Who can claim?<\/span><\/b>\u00a0<\/span><\/h3>\n

                            To qualify for these reliefs, your company must:<\/span>\u00a0<\/span><\/p>\n

                              \n
                            • Be liable for Corporation Tax<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                \n
                              • Be directly involved in the production and development of qualifying projects, such as films, video games, or exhibitions<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                  \n
                                • Hold responsibility throughout the project, from pre-production to completion<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                    \n
                                  • Actively make decisions, negotiate contracts, and manage finances<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                                    For theatrical productions, orchestral concerts, or exhibitions, your company must oversee everything from production to closure.<\/span>\u00a0<\/span><\/p>\n

                                    Cultural certification<\/span><\/b>\u00a0<\/span><\/h3>\n

                                    For tax reliefs tied to films, TV, and video games, your work must be certified as British.\u00a0<\/span>\u00a0<\/span><\/p>\n

                                    This can be done through a cultural test or an internationally recognised co-production treaty.\u00a0<\/span>\u00a0<\/span><\/p>\n

                                    Certification is managed by the British Film Institute (BFI), which can issue interim certificates for works in progress or final certificates for completed productions.<\/span>\u00a0<\/span><\/p>\n

                                    Additional information form requirement<\/span><\/b>\u00a0<\/span><\/h3>\n

                                    All claims for creative industry tax reliefs made on or after 1 April 2024 must include an additional information form.\u00a0<\/span>\u00a0<\/span><\/p>\n

                                    This document is required to provide evidence to support your claim, ensuring compliance and transparency.<\/span>\u00a0<\/span><\/p>\n

                                    When to submit your claim<\/span><\/b>\u00a0<\/span><\/h3>\n

                                    Timing is crucial when making a claim. You should submit your claim for creative industry tax relief within:<\/span>\u00a0<\/span><\/p>\n

                                      \n
                                    • Two years from the end of your accounting period, or;<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                        \n
                                      • 42 months from the start of your accounting period if it lasts longer than 18 months<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                                        Your additional information form and all supporting evidence must be submitted before or on the same day as your Company Tax Return.\u00a0<\/span>\u00a0<\/span><\/p>\n

                                        Late submissions could result in delays or invalidation of your claim.\u00a0<\/span>\u00a0<\/span><\/p>\n

                                        Remember, you will need to submit a separate form for each accounting period for which you are claiming relief.<\/span>\u00a0<\/span><\/p>\n

                                        What information do you need to provide?<\/span><\/b>\u00a0<\/span><\/h3>\n

                                        To complete the additional information form, you must include your:<\/span>\u00a0<\/span><\/p>\n

                                          \n
                                        • VAT registration number<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                            \n
                                          • PAYE reference number<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                              \n
                                            • Foreign Entertainer\u2019s Unit (FEU) reference number (if applicable)<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                                              Production information<\/span><\/b>\u00a0<\/span><\/h3>\n

                                              For each production, include:<\/span>\u00a0<\/span><\/p>\n

                                                \n
                                              • Project or production name<\/span><\/b> \u2013 If it differs from the British Film Institute (BFI) certificate, explain why<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                  \n
                                                • Start date of pre-production or development<\/span><\/b>\u00a0<\/span><\/li>\n<\/ul>\n
                                                    \n
                                                  • Production status<\/span><\/b> \u2013 Whether it is ongoing, complete, or abandoned<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                                                    Specific requirements for different types of claims<\/span><\/b>\u00a0<\/span><\/h3>\n
                                                      \n
                                                    • Film, TV, or video games<\/span><\/b> \u2013 Attach a digital version of the BFI certificate and provide the Department for Digital, Culture, Media and Sport (DCMS) reference number.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                        \n
                                                      • Theatre, orchestra, museum, or gallery productions <\/span><\/b>\u2013<\/span> Include the production start date and opening night or first public performance date (planned dates if still ongoing). For touring productions, list:<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                          \n
                                                        • Number of performances<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                            \n
                                                          • Dates and locations for each performance<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                              \n
                                                            • Orchestral productions<\/span><\/b> \u2013 If applicable, disclose details of concert series elections previously submitted.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                                                              Expenditure details<\/span><\/b>\u00a0<\/span><\/h3>\n

                                                              For expenditure details, you will need to outline:<\/span>\u00a0<\/span><\/p>\n

                                                                \n
                                                              • Total expenditure and core costs for all productions<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                                  \n
                                                                • Amount of credit, additional deduction, or loss surrendered for each relief. Hm Revenue & Customs (HMRC) also provides templates within the form to help you organise this data accurately.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                                                                  Connected party transactions<\/span><\/b>\u00a0<\/span><\/h3>\n

                                                                  If your claim involves connected party transactions, you must disclose:<\/span>\u00a0<\/span><\/p>\n

                                                                    \n
                                                                  • Total number of connected parties<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                                      \n
                                                                    • Combined value of all transactions<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                                                                      For each transaction, provide:<\/span>\u00a0<\/span><\/p>\n

                                                                        \n
                                                                      • Name of the connected party<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                                          \n
                                                                        • Date and amount of expenditure<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                                            \n
                                                                          • Description of goods or services provided<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                                                                            What if you need to amend your claim?<\/span><\/b>\u00a0<\/span><\/h3>\n

                                                                            If amendments are necessary:<\/span>\u00a0<\/span><\/p>\n

                                                                              \n
                                                                            • Submit a new form for the same accounting period.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                                                                                \n
                                                                              • Re-submit your Company Tax Return, even if it doesn\u2019t require other amendments.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                                                                                Amendments cannot be made directly to a submitted form, so double-check all details before submission.<\/span>\u00a0<\/span><\/p>\n

                                                                                Contact us today with help and advice regarding tax reliefs for your creative industry business or if you require assistance with submissions.<\/span><\/b>\u00a0<\/span><\/p>\n

                                                                                \u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

                                                                                To support the vibrant sector that is the creative industry, the Government offers an array of tax reliefs and expenditure credits.\u00a0<\/p>\n","protected":false},"author":2,"featured_media":6134,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125,7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6131"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=6131"}],"version-history":[{"count":2,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6131\/revisions"}],"predecessor-version":[{"id":6136,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6131\/revisions\/6136"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/6134"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=6131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=6131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=6131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}