Starting a new business? Get 40% off our accountancy services for 3 months! 😎
The UK’s economy depends on innovation, which is why some businesses can claim tax relief if they work in the creative sector. The idea behind these tax incentives is to encourage new projects and cutting-edge technologies.
There are currently eight different types of Corporation Tax relief available for creative industry businesses, and each one has different criteria. Knowing which creative tax reliefs are available and how to apply isn’t always easy, so we’ve put together this quick guide to help.
You might already have spotted that we only refer to Corporation Tax relief. Sadly, that does mean these reliefs are only available to companies who pay Corporation Tax, and not to sole traders or general partnerships.
Of course, if you think your business may be eligible but you’re not quite sure or you’ve got any questions, feel free to get in touch.
We’ll start here, because the BFI cultural test is central to most of the tax relief schemes available to creative businesses.
Essentially a business must prove the game, programme, or show that it creates has scored enough points to be certified as British. The British Film Institute (BFI) handles the certification process on behalf of the UK government.
You can request an interim certificate before completing the work. This can be particularly useful if you’re working on a longer project spanning financial years, and need to submit your Company Tax Return.
Once your production, film, programme, or video game is complete you will need to apply for a final certificate from BFI’s Certification Unit. This is key, and failing to do so means you’ll need to repay any tax relief you have already claimed. Make sure you include your final certificate – plus any interim ones – as proof of eligibility when you submit your Company Tax Return.
There are different types of tax relief schemes available to creative sector businesses, which are provided according to the type of work you produce.
Your production might be eligible if… | You won’t qualify if the production… |
|
|
Multiple animations that are commissioned together will be treated as a single programme, but the good news is that there’s no upper limit on how much you can claim.
Video Games Tax Relief is a particularly popular type of relief claimed by gaming companies up and down the UK. To be eligible, your company must have:
Unfortunately, if your company has already claimed Research and Development Tax Relief on a project, you can’t go on to claim VGTR, grants, or any other state aid reliefs on that same project. That said, you may be able to claim other state aid on future projects.
You also won’t be able to claim Video Games Tax Relief if your game has been designed for marketing, promotional or gambling purposes.
Film Tax Relief is another popular one, with companies able to claim the tax relief if their project:
Find out more about FTR, including eligibility and how to claim, on the Gov.uk website.
High-End Television Tax Relief is less well-known but it can make a huge difference – particularly to small production companies.
Apply for High-End Television Tax Relief if your production… | You won’t qualify for HTR if the programme… |
|
|
If two or more programmes were commissioned together, they’ll be regarded as one program and be treated accordingly for tax relief purposes.
A production is eligible if… | A programme isn’t eligible if it… |
|
|
Game shows, quizzes and other programmes that involve contest or competition are able to claim, but only if the prize money is less than £1,000. Again, if multiple programmes are commissioned together, they’ll be treated as one programme. Learn more about Children’s Television Tax Relief.
Theatrical production companies will be able to apply for TTR if:
See the government’s Theatre Tax Relief Manual for more information and how to apply.
If you haven’t even heard of Orchestra Tax Relief, you’re not alone – many people haven’t. This government initiative works by allowing instrumental groups to receive a payment from HMRC that equals a percentage of their production costs. Despite the name, any type of instrumental group can claim – not just orchestras.
For more information about eligibility and how to make a claim, see the Claiming Orchestra Tax Relief for Corporation Tax page on the Gov.uk website.
Any eligible company which curates a public display, show, or exhibition of an organised collection of objects or works that have cultural, historic, scientific, or artistic interest can claim MGETR. It doesn’t even have to be many items – it could just be one.
Unlike many of the other Creative Sector Tax Reliefs, galleries and museums aren’t subject to the cultural test to be eligible.
Creative industry tax reliefs are classed as state aids. This means that if your company receives €500,000 or more in state aid per year, the European Commission publish the details on their website, regardless of what creative industries tax relief you’re claiming.
Learn more about our online accounting services to get help with claiming tax relief. Call us on 020 3355 4047 for a chat, and get an instant online quote.
Subscribe to our newsletter to get accounting tips like this right to your inbox
Read our guide to UK tax rates and thresholds for sole traders, limited companies, partners and partnerships, employers, and other businesses. UK…
Read MoreVinted has grown in popularity as a place to make a bit of cash selling unwanted clothes following a declutter, but it…
Read MoreSubmitting your tax return as soon as the next tax year starts might seems like a strange notion, but it definitely has…
Read MoreThe number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?
Please contact our sales team if you’re unsure
It is unlikely you will need this service, unless you are voluntarily registered for VAT.
Are you sure this is correct?
Call us on 020 3355 4047 if you’re not sure.
You will receive our bookkeeping software Pandle for free, as part of your package.
You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.
Please select and option below:
Call us on 020 3355 4047 if you’re not sure.