Creative Sector Tax Relief
The UK creative sector is booming, with many companies leading the way in terms of research and development.
This scheme can offer a 26 per cent tax reduction for profitable companies, for every pound spent on R&D activities. For loss-making companies, the tax credits also return 33.35 per cent, for staff costs and developing new or improved products, processes, services or systems. In a nutshell, whether the organisation is profitable or not, help is at hand to provide support.
I highly recommend that if your company is engaged in projects that could qualify for R&D tax credits, start asking yourself the following questions. If you can answer yes to each one, there is a good chance you would be eligible for some tax relief.
- Are you working on an innovative project?
- Does your project have a defined start and end date?
- Is it in a field of science or technology?
- Is the work you are doing improving what is currently available in the marketplace?
- Are you pursuing a scientific or technological advancement?
- Is there a degree of scientific or technological uncertainty involved?
- Is the knowledge or capability involved readily available? Or is it deducible by a competent professional?
- Are you spending time investigating and testing the results?
Although some regions of the UK are slow on the uptake of R&D tax credits, technology and digital sectors are continuing to grow across the country and there is additional support available, for example, HMRC’s online portal to help process claims.