Essential Tax Reliefs Every Creative Professional Should Know About

Navigating Taxes as an Influencer in the UK: A Comprehensive Guide

As a creative professional—whether you're an artist, filmmaker, designer, or musician—understanding tax reliefs can help you reduce your tax burden and keep more of your earnings. Many creatives are unaware of the financial support available to them through tax relief schemes, which are designed to support and encourage innovation in the creative industries.

At Creative & Numbers, we specialise in accounting for creative professionals, helping you maximise tax efficiency and make the most of available reliefs. In this blog, we’ll explore essential tax reliefs you should know about and how they can benefit you.

1. Creative Industry Tax Reliefs (CITR)

The UK government offers several tax reliefs to support creative businesses that produce culturally significant works. These reliefs allow companies to claim back a percentage of their production costs, reducing their overall tax liability.

Some of the key Creative Industry Tax Reliefs include:

Film Tax Relief (FTR) – Available for UK-certified films intended for theatrical release.
Animation Tax Relief (ATR) – For animation projects with at least 51% animated content.
Video Games Tax Relief (VGTR) – For UK-certified video game development.
Theatre Tax Relief (TTR) – For theatre productions, including plays, musicals, and opera.
Museums and Galleries Exhibition Tax Relief (MGETR) – For exhibitions run by museums and galleries.

These reliefs allow companies to claim an additional deduction of up to 80% of core expenditure or a payable tax credit if the company is making a loss.

2. Research & Development (R&D) Tax Relief

If your creative business engages in innovation—such as developing new techniques, software, or creative tools—you may qualify for R&D Tax Relief. This relief is designed to encourage businesses to invest in research and development, offering generous tax reductions for qualifying projects.

Eligible industries include:

Game developers creating new mechanics or AI innovations.
Filmmakers developing new visual effects technologies.
Artists experimenting with novel production techniques.

Small and medium-sized enterprises (SMEs) can claim up to 33% of qualifying R&D expenditure as a tax credit.

3. Work-from-Home Tax Relief

Many creative professionals work from home, whether as freelancers or small business owners. If you use part of your home for work, you may be able to claim tax relief on expenses such as:

A portion of rent or mortgage interest.
Utility bills (electricity, heating, internet).
Office furniture and equipment.

HMRC allows a simplified flat rate or a percentage-based deduction based on the space used for work.

4. Self-Employed Expenses & Deductions

If you're self-employed, you can deduct various business expenses from your taxable income, reducing the amount of tax you owe. Some common allowable expenses for creatives include:

Studio or workspace rental.
Software subscriptions (Adobe Creative Cloud, Final Cut Pro, etc.).
Professional development courses and training.
Marketing and advertising costs.
Travel and accommodation for work-related events.

Keeping accurate records of these expenses is crucial for maximising your tax deductions.

5. VAT Considerations for Creatives

If your annual turnover exceeds £90,000, you must register for Value-Added Tax (VAT). However, VAT can be complex for creatives, especially those selling internationally or working on commissioned projects.

Some VAT schemes that might benefit you include:

The Flat Rate Scheme, which simplifies VAT calculations.
The VAT Margin Scheme, which applies to second-hand goods, including artwork sales.

Choosing the right VAT scheme can help reduce administrative burdens and improve cash flow.

Why Work with Creative & Numbers?

Navigating the UK tax system as a creative professional can be overwhelming, but that’s where we come in. At Creative & Numbers, we specialise in accounting for creative professionals, ensuring you claim every tax relief available to you.

We help:

Freelancers and self-employed creatives maximise allowable deductions.
Production companies access Creative Industry Tax Reliefs.
Game developers and tech innovators claim R&D Tax Relief.

Take Control of Your Finances Today

Understanding tax reliefs can save you thousands of pounds and allow you to reinvest in your creative work. However, the process can be complex, requiring expert guidance.

At Creative & Numbers, we’re here to make accounting simple and stress-free for creative professionals. Get in touch today to discover how we can help you optimise your tax position and keep more of what you earn.

📞 Contact us today to learn more about tax reliefs for creatives!