Designed to encourage investment in the creative sector, a group of corporation tax reliefs are available to creative organisations in the UK.

These reliefs are not only aimed at charities or trading subsidiaries; private limited companies may also be able to claim for creative industry tax relief (CITR). At Berley, we encourage our clients to take advantage of this opportunity. Those who are eligible to claim can save a considerable amount of money, and in many cases, even claim a payable tax credit from HMRC when calculating their taxable profits.

Does my company qualify for creative sector tax relief?

When your company is liable to corporation tax and directly involved in the production or development of certain films, animation, children’s TV programmes, video games, theatrical productions, orchestral concerts and museum or gallery exhibitions, it may be eligible to claim creative industry tax relief. These are broken down into the following types:

• Film Tax Relief (FTR)
• Animation Tax Relief (ATR)
• High-end Television Tax Relief (HTR)
• Children’s Television Tax Relief (CTR)
• Video Games Tax Relief (VGTR)
• Theatre Tax Relief (TTR)
• Orchestra Tax Relief (OTR)
• Museums and Galleries Exhibition Tax Relief (MGETR)

If you operate in one of these areas you’ll need a formal qualification in order to claim the relief. This can be obtained by passing a cultural test, or if you’re part of an international co-production treaty, you may also be eligible. Read the government’s guide to find out if you qualify or get in touch with accountants specialised in the creative sector.

How to claim for creative sector tax relief

As a private limited company, you must prepare your annual accounts and a company tax return at the end of your financial year. This is also when you must make a claim for tax relief if you qualify. If you’re claiming based on a cultural test, you must wait until you have received the certificate from the issuing body, as the certificates must be filed together with your tax return. It’s also good to know that you’ll have the right to amend or withdraw a claim to any tax relief for up to one year after you’ve filed your taxes.

How can we help?

As specialist accountants for creative agencies, Berley Chartered Accountants can help you make sure you’re not paying too much tax. We’ll assess your business to determine whether or not you qualify for creative industries tax relief or any other tax relief, and ensure you are getting all the benefits you are entitled to. We’re not just accountants though, we’re also business growth advisors, and a big part of growing your business is knowing where you can save money and what tax breaks are available to you.

Talk to us today to find out more about what Berley can do for your creative agency. We’ll provide you with honest feedback and straightforward advice.