In the 18 months or so since Theatre Tax Relief (TTR) was introduced, we have now submitted successful claims totalling over £2m, with another £450k submitted and awaiting payout.
Over 30 clients have benefited from the relief. The system is well and truly up and running!
Claims are being made by all types of organisation, commercial and subsidised, both large and small.
How quickly are claims being paid?
The timing has been variable, but 6-8 weeks is a reasonable expectation. The Manchester tax office is extremely busy, and will not prioritise claims, dealing with them, strictly, in the order they are submitted to ensure fairness. Like many HMRC offices nowadays resources are stretched, and sudden influxes of claims can affect time-lines .
Are claims being challenged?
So far we have experienced a very co-operative and practical approach from HMRC with regard to claims. In particular, we seek to resolve contentious areas at the outset, before claims are submitted, in order to speed their progress once the claim is lodged. Whilst, naturally, we have received some requests for further explanation or detail relating to some aspects of claims, such as intention to tour and allowability of rights payments, our experience is that these matters are usually explained to HMRC’s satisfaction without any impact on the original claim, such that clients’ expectations are being fulfilled.
HMRC are giving the issue of profit distributions now being subject to corporation tax prior to distribution further consideration, which is good news. For now they will accept the existing position until a formal grandfathering process has been announced. We expect this to become effective from Spring 2017 and will update you when we have more information.
It is imperative that new productions are structured appropriately and that this is addressed at the earliest possible stage.
Can we help you?
Our very experienced theatre team, led by Paul Taiano and Anthony Pins, are here to help, so please do not hesitate to contact them by clicking their name above, if you require assistance.