Following a meeting with officials, CTG Chairman, John Hemming, wrote to the Deputy Director responsible for charities policy at HMRC, on 3 April 2020, focusing on COVID-19 Response Activity by charities, cashflow issues facing charities and possible solutions, and practical administrative issues for charities including tax reporting requirements and deadlines.

This included a question on accounting Requirements for the Creative Industry Tax Reliefs, following queries from member charities. CTG highlighted that these reliefs are contingent upon audited statutory accounts for the entities but, in the current climate, auditors are saying that this will delay audits if they are unsure over the going concern principles – assuming audits are able to continue in the first place. CTG noted that one option is to disclose differently in the accounts but that another option could be for HMRC to relax the requirement for this and issue interim payments.

HMRC has now responded stating:

“These reliefs are contingent upon audited statutory accounts for the entities but you state that due the current climate, audits will be delayed and so you ask whether the deadline can be extended.  As you know, claims for any of the creative industry tax reliefs are made at the end of a company’s accounting period and it is a statutory requirement for accounts and computations to be submitted with any claim. As the accounts form an integral part of the claim, this is not a condition that HMRC can legally relax.“

Further information on the Creative Industry Tax Reliefs can be found via the links below

• Theatre Tax Relief
• Orchestra Tax Relief
• Museum and Galleries Exhibition Tax Relief