If you work in the creative industries you could be entitled to specific tax reliefs. Also known as cultural industries, creative industries refers to a range of economic activities such as video games, design, new media, television and film production, theatre and orchestra.
The creative industries is now worth £76.9 billion per year to the UK economy, and the government is keen to encourage more creative business activity through a variety of tax reliefs. Specific tax reliefs already exist to encourage further investment in creative industries. These work in a similar way to the less specific R & D tax reliefs, but are often left unclaimed by businesses who are simply not aware of the potential tax savings.
What you could be claiming
Provided the company meets the requirements of a qualifying creative sector company, it could be entitled to:
- An enhanced deduction from taxable profits or;
- If it is loss making, a repayable tax credit.
The costs that are taken into consideration are those associated with, for example, pre-production, design and testing. Therefore, it is just as important to retain the records of such expenditure if you are going to make a claim for the reliefs.
These reliefs are actively encouraged by the government and provide a great cash flow opportunity through potential tax savings.