Popular in Course
verified elite notetaker
Popular in Accounting
This 2 page Document was uploaded by an elite notetaker on Friday December 18, 2015. The Document belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 20 views.
Reviews for Richmond-Accounting-Firms
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 12/18/15
Creative industry tax relief spelt out by government A recent development of interest to many of those using accountants for freelancers like those of Freelancer Accounting (http://www.freelanceraccounting.com) will be the introduction of new small print by the government concerning companies' eligibility for 'creative industry tax relief'. Creative industry tax reliefs are Corporation Tax reliefs enabling larger deductions or even payable tax credits to be claimed by qualifying companies when they calculate their taxable profits. The way these reliefs work is that the amount of allowable expenditure is increased. In the event of the eligible client of a PCG accountant making a loss, there may be the option of 'surrendering' that loss, converting some or all of it into a payable tax credit. The introduction of Film Tax Relief in 2007 was followed by that of two further reliefs, Animation Tax Relief and High-end Television Tax Relief, in April 2013. Subject to state aid approval, a fourth relief for Video Games Development is also set to be introduced. The rules concern eligibility for these tax breaks are therefore relatively clear just from their names, but should a contractor accountancy client be in any doubt about their potential qualification for a tax deduction or even a potential payable tax credit on their profits, they can email their queries to a unit inside HM Revenue & Customs that has special responsibility for the reliefs. In order to qualify for creative industry tax reliefs, companies should be both liable to Corporation Tax and directly involved in producing and developing certain films, video games, animation programmes or 'high-end' television programmes. There are special tax rules that apply to film production companies producing films, irrespective of whether the films are intended to be released in cinemas, as well as television production companies producing relevant high-end television programmes or animation. Although it is possible for companies to opt out of these rules, doing so will invalidate their eligibility for Creative's Tax Relief. There are also qualifying conditions that apply to the reliefs. To qualify for the reliefs, those creative companies making use of accountants in London will need to subject their films, television programmes, video games or animations to a 'cultural test'. Passing this test will entitle them to a formal certificate stating that the game, programme or production is 'British'. Alternatively, qualification is possible through an internationally agreed co-production treaty. In all cases, one cannot qualify without formal certification. Administration of the certification and qualification process is by the British Film Institute (BFI) on the Department for Culture Media and Sport's behalf. For incomplete work, an interim certificate can be issued, while a final certificate can be issued if production is finished. More guidance and eligibility information in relation to creative industry tax reliefs can be viewed on the HMRC website. It may make intriguing reading for many of the clients of our accountancy services, who are free to contact Freelancer Accounting (http://www.freelanceraccounting.com) at any time for the most up-to-date advice on their tax and accounting affairs. Editor’s Note: Freelancer Accounting (http://www.freelanceraccounting.com) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: email@example.com or call: +44 (0)20 3070 1959 / +34 952 783 637.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'