Saving money for creative businesses

12-Aug-2014

HMRC have recently introduced some fantastic tax breaks for companies within the creative industry known as Creative Industry Tax Reliefs (CITR).

Your company may be eligible to benefit from the CITRs if it is liable to pay corporation tax and is directly involved in the production and development of certain films, animation programmes, ‘high-end’ television programmes or video games.

To qualify for CITRs the project must pass a ‘cultural test’ and providing the project meets the criteria you can benefit from either: Film Tax Relief (FTR); Animation Tax Relief (ATR); High-end Television Tax Relief (HTR); or Video Games Development Relief.

These CITRs will allow you to claim a tax deduction of 80-100% of enhanceable expenditure or 80% of qualifying expenditure.

Should your company not be in the position to pay corporation tax i.e. is loss making, you are able to surrender the loss to HMRC in order to free up some cash.

Contact amy@janmcdermott.co.uk if you would like more information to see whether your company is eligible for CITR.