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British film, TV and video game producers will benefit from new, more generous tax credits that start today (1 January 2024).
To maximise the potential of the UK’s cutting-edge production industry and help incubate unique British talent, the government’s Audio-Visual Expenditure Credit and the Video Games Expenditure Credit replace the previous tax reliefs for film, TV and video games.
All companies will receive more tax relief than they did under the previous system, greater flexibility over production decisions and greater clarity about the amount of credit companies can expect to receive.
Nigel Huddleston, Financial Secretary to the Treasury, said: “We are backing the makers of the next Barbie, Happy Valley and Grand Theft Auto with this new, more generous, tax credit system for British production talent.
“The UK is a world leader in creativity, and we want to ensure that continues well into the future by making it easier for British film, TV and video games to thrive.”
Under the new system, a children’s TV production, animated TV production or film with £1 million of qualifying expenditure will receive an additional £42,500 in relief. A high-end TV production, film production or video game will receive £5,000 in relief. To ensure fairness, the uplift in relief for animation will be extended to include animated films as well as TV programmes.
The credits will be calculated directly from a production or game’s qualifying expenditure, instead of being an adjustment to the company’s taxable profit.
Animation and children’s TV productions will be eligible for a higher credit rate of 39%, a rate increase of 5.5% under the previous reliefs. The 34% credit rate for film, high end TV and video games is roughly equivalent to a rate increase of 0.5% under the previous tax reliefs.
The new system applies to the whole of the UK.
The government has listened to feedback from industry that companies will need sufficient time to adapt to the new expenditure credits. For this reason, productions and games in development on 1 April 2025 may continue to use the previous tax reliefs until they end on until 1 April 2027.
The move to reform tax relief for entertainment productions and video games was announced at the Spring Budget in March 2023. The system implemented today was developed hand in glove with the UK entertainment industry, with consultations on both the policy itself and the draft legislation. It is being legislated as part of the Finance Bill 2023-24.
The UK’s creative industry is already worth £126bn and the UK has the largest video game employee base in Europe, at nearly 21,000 by the last estimate.
Today’s new tax credit system is the latest move by UK Government in support for British creative industries. The Chancellor also announced that full-expensing will be made permanent in 2023’s Autumn Statement, helping creative businesses invest for the less by saving them 25p in every £1 they spend on qualifying equipment and machinery.
At Spring Budget 2023, the Chancellor also extended the rates of relief for theatre, orchestra and museums for two additional years to April 2025.
In September last year, coinciding with a visit by the Chancellor Jeremy Hunt to Warner Bros. Studios in Los Angeles, it was announced that the production giant would expand their studio in Leavesden, Hertfordshire, in 2024. The move is expected to create 4,000 new jobs in the UK and contribute more than £200m to the UK economy.
Around 840,000 families, who receive tax credits and no other qualifying benefits, will receive their £300 autumn Cost of Living Payment from today, to help with everyday costs.
HM Revenue and Customs (HMRC) is making the payments to eligible tax credits customers across the UK between 10 and 19 November 2023.
In addition, more than 7 million eligible UK households are receiving £300 directly from the Department for Work and Pensions (DWP) between 31 October and 19 November 2023.
This is the second of three payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or tax credits, in 2023 to 2024.
Chief Secretary to the Treasury, John Glen, said: “I know Christmas can be a difficult time, which is why this £300 payment will come as a welcome boost for hundreds of thousands of families.
“But the best help we can give is halving inflation this year.”
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “The £300 Cost of Living Payment will deliver further financial support to eligible tax credits customers across the UK. Another payment will be made by spring 2024 to those entitled to receive it.
“HMRC customers will receive the payment automatically, with no action required from them, to make this as simple as possible.”
The payment from HMRC to tax credits customers will appear on bank statements as ‘HMRC COLS’, referencing Cost of Living Support. Those receiving the payment from DWP will see the payment reference as their National Insurance number followed by ‘DWP COL’.
If customers have not received the Cost of Living Payment from HMRC between the published payment dates, but believe they are eligible, they should wait until after 20 November to contact us. This is to allow time for their bank, building society or credit union to process the payment.
Receiving a previous Cost of Living Payment does not guarantee customers will get a future one. Customers must meet the individual eligibility criteria for each payment, as published on GOV.UK.
Payment from HMRC will be made automatically into the bank account where eligible customers receive their tax credits. They do not need to do anything to receive a payment. They do not need to contact HMRC or apply for the payment.
Pensioner households will also receive £300 which will be paid as a top up to those eligible for the Winter Fuel Payment in November and December. Combined with the one-off Cost of Living Disability Payment earlier this year, some households will receive £1,350 in total.
Customers should beware of scams targeting Cost of Living Payments. If someone contacts them about this payment saying they are from HMRC or DWP, it might be a scam. People can check advice on spotting scams by visiting GOV.UK and searching ‘HMRC phishing and scams’. They can also check on GOV.UK that any contact is genuinely from HMRC.
Almost 172,000 tax credits customers have until 31 July to renew their annual claim and HM Revenue and Customs (HMRC) is urging them to not miss out.
Customers who received a renewal pack with a red line across the first page and the words ‘reply now’ must respond to HMRC or risk having their payments stopped. Customers whose packs had a black line across the first page and the words ‘check now’ only need to update HMRC if their details have changed.
‘Reply now’ customers must tell HMRC about their current circumstances. Life changes HMRC needs to know about include:
The full list of changes that could affect customers’ tax credits is on GOV.UK. ‘Reply now’ customers must respond to the request for information even if there have been no changes to their circumstances.
The quickest and easiest way for customers to renew their tax credits is online at GOV.UK or via the HMRC app.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know tax credits offer vital financial support for our customers so it is important that you renew by the deadline on 31 July.
“It is quick and easy to renew online at GOV.UK or using the HMRC app, just search ‘manage my tax credits’ on GOV.UK.”
Help and support is available on GOV.UK for customers renewing claims and HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.
Criminals use tax credits renewals and other deadlines in scams to attempt to trick people into sharing their banking or other personal details. Typical scam examples include emails or texts claiming an individual’s details aren’t up to date and that they risk losing out on payments that are due to them.
If a phone call, text or email is unexpected, do not give out private information or reply, and do not download attachments or click on links.
HMRC is also warning people not to share their login details with anyone else. Visit GOV.UK for more information on how to report a scam or suspicious activity.
By the end of 2024, tax credits will be replaced by Universal Credit. Customers who receive tax credits will receive a letter from the Department for Work and Pensions telling them when to claim Universal Credit, or from the Department for Communities if they live in Northern Ireland.
It is important that customers claim by the deadline in the letter to continue receiving financial support as their tax credits will end even if they decide not to claim Universal Credit.
The government is offering Help for Households. Check GOV.UK to find out what cost of living support individuals could be eligible for.
Tax credits customers have a month to renew their claim or risk having their payments stopped, HM Revenue and Customs (HMRC) has warned.
The annual deadline is 31 July and more than 300,000 customers who received a renewal pack with a red line across the first page and the words ‘reply now’ still need to confirm their circumstances for the current tax year to continue receiving payments.
Circumstances that could affect tax credits payments include changes to living arrangements, childcare, working hours or a change in income.
The quickest and easiest way for customers to renew their tax credits is digitally via GOV.UK or the HMRC app.
Myrtle Lloyd, HMRC’s Director-General for Customer Services, said: “Please act now to meet the 31 July deadline for renewing your tax credits or your payments could stop.
“There is no need to call us, it is quick and easy to renew via GOV.UK or the HMRC app. For details on how to renew, search ‘manage my tax credits’ on GOV.UK.”
HMRC sent out two types of renewal packs to 1.5 million customers between 2 May and 15 June 2023. These were:
· ‘reply now’ packs had a red line across the first page and the words ‘reply now’. Customers must confirm their circumstances to renew their tax credits
· ‘check now’ packs had a black line across the first page and the words ‘check now.’ Customers whose details are correct do not need to do anything and their tax credits will be automatically renewed
Help and support is available on GOV.UK for customers renewing claims and HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.
Criminals do use tax credits renewals and other deadlines in scams to attempt to trick people into sharing their banking or other personal details. Typical scam examples include emails or texts claiming an individual’s details aren’t up to date and that they risk losing out on payments that are due to them.
If a phone call, text or email is unexpected, do not give out private information or reply, and do not download attachments or click on links.
HMRC is also warning people not to share their login details with anyone else. Visit GOV.UK for more information on how to report a scam or suspicious activity.
By the end of 2024, tax credits will be replaced by Universal Credit. Customers who receive tax credits will receive a letter from the Department for Work and Pensions (DWP) telling them when to claim Universal Credit. It is important that customers claim by the deadline in the letter to continue receiving financial support as their tax credits will end even if they decide not to claim Universal Credit.
The government is offering Help for Households. Check GOV.UK to find out what cost of living support individuals could be eligible for.
One million eligible claimant families receiving tax credits, and no other means-tested benefits, will get the first 2023-24 Cost of Living Payment from Tuesday 2 May 2023, HM Revenue and Customs (HMRC) has confirmed.
The £301 UK Government payment will be paid automatically into most customers’ bank accounts between Tuesday 2 and Tuesday 9 May 2023 across the United Kingdom. Only eligible families who receive tax credits and no other means-tested benefits will receive the payment from HMRC.
This is the first of three payments totalling up to £900 for those eligible in 2023-24.
Chief Secretary to the Treasury, John Glen, said: “Higher prices make life difficult for everyone, which is why our priority is to halve inflation this year.
“But we are also going further to support those struggling most, with a total package of support worth an average of £3,300 per household this year and next – including up to £900 in direct cash payments starting next month for families receiving tax credits.”
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “The £301 Cost of Living Payment will deliver vital financial help to eligible tax credit customers across the UK. Further support will be paid in autumn 2023 and spring 2024 to those entitled to payment.
“HMRC will pay eligible tax credit customers automatically and with no action required from the customer, to make this as simple and helpful as it can possibly be.”
The payment will show as ‘HMRC COLS’ in customers’ bank and building society accounts, so that they know the money is cost of living support.
For tax credit-only customers to be eligible for the £301 Cost of Living Payment, they must have received a payment of tax credits in respect of any day in the period 26 January to 25 February 2023, or later be found to have been entitled to a payment for this period.
Eligible customers do not need to apply or contact HMRC to receive the payment.
The Department for Work and Pensions (DWP) recently announced that eligible households receiving DWP means-tested benefits will receive their first 2023-24 payment between Tuesday 25 April and Wednesday 17 May. This includes tax credit claimants who also receive other income-related benefits from DWP.
The payments are part of a package of wider UK Government support announced to tackle the cost of living in 2023-24, including:
· a further £300 Cost of Living Payment for eligible families in autumn 2023, with a payment of £299 in Spring 2024
· a £150 Disability Cost of Living Payment for eligible disabled people to be paid during summer 2023
· a £300 Pensioner Cost of Living Payment to be paid during winter 2023-24.
This means that the most vulnerable can receive up to £1,350 in direct payments over the coming financial year if eligible.
Including both DWP and HMRC payments, the latest Cost of Living Payment will see more than 8 million households across the UK receive their £301 cash boost by mid-May 2023.
The UK Government is offering help for households. Customers should check GOV.UK to find out what support they could be eligible for.
More than one million claimant families receiving tax credits, and no other means-tested benefits, will get their second Cost of Living Payment from Wednesday 23 November 2022, HM Revenue and Customs (HMRC) has confirmed.
This £324 UK Government payment will be paid automatically into most eligible tax credit-only customers’ bank accounts between 23 and 30 November 2022 across the United Kingdom.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:
“This second Cost of Living Payment will provide further financial support to eligible tax credit-only claimants across the UK.
“The £324 will be paid automatically into bank accounts, so people don’t need to do anything to receive this extra help.”
The second payment will see more than 8 million households across the UK receive their £324 cost of living cash boost by 30 November and follows the first cost of living payments of £326, which eligible families received from Department for Work and Pensions (DWP) from July and HMRC from September.
The UK Government recently announced that households receiving DWP benefits will get their second Cost of Living Payment from 8 November continuing through to 23 November. This includes tax credit claimants who also receive other income-related benefits from DWP.
HMRC is making payments shortly after DWP in order to avoid duplicate payments.
This latest payment comes on top of wider UK Government support with the cost of living this autumn and winter, including:
· the £150 Disability Cost of Living Payment, already paid to around 6 million disabled people
This is in addition to an extension to the Household Support Fund, which is providing an extra £421 million for use between October 2022 and March 2023 to help vulnerable people with the essentials. A £150 Council Tax rebate was sent earlier this year to those in Council Tax bands A to D in England, creating at least £1,200 in direct support for millions of households.
A £400 reduction on energy bills is also being given to all domestic electricity customers over the coming months, and the Energy Price Guarantee is protecting households from significant rises in their energy bills this winter.
The UK Government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for.
Additional Information:
HMRC recently confirmed that HMRC’s first Cost of Living Payment to 1.1 million claimant families receiving tax credits will be made between 2 and 7 September 2022. The first HMRC payments will total around £360 million.
We are now letting you know that we have started to issue these payments.
If tax credits customers believe they are eligible but have not received a £326 payment between the published payment dates, they should wait until 16 September to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment.
The UK Government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for.
Background:
As well as the Cost of Living Payment, other government support includes:
This is in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants; a rise in the National Living Wage to £9.50 an hour; and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.
More than 33,600 customers have successfully used the HMRC app to renew their tax credits claim so far this year, a 39% increase on last year, HM Revenue and Customs (HMRC) has revealed.
Tax credits help working families with targeted financial support, so it is important customers act now to renew before the quickly approaching 31 July deadline to ensure their payments don’t stop.
HMRC is encouraging more customers to use the highly-rated app as it is a quick and easy way to get this vital job done.
It is free and simple to use and allows direct access to tax credits at the touch of a button. There are many benefits of the fully secure app, which can be used on any smartphone or tablet, at any time, eliminating the need to call HMRC and helping customers to save time and money.
Customers using the HMRC app can:
There are nearly 259,000 tax credits app users, who have used the app more than 10 million times in the last year to do things like check their payment dates and amount.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for our tax credits customers to renew their claims. It’s quick, easy and free to complete a renewal on the HMRC app – search ‘HMRC’ in your smartphone app store.”
Customers can download the app at the App Store or Google Play. Online reviews at both indicate plenty of satisfaction with the app’s performance, as it currently holds a score of 4.5 stars on the App Store, and 4.7 on Google Play.
HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.
Once signed into the app after initial download, there are options for users to set up and select facial recognition, a fingerprint or a 6-digit pin to get fast and fully secure access to their details.
Customers can also renew their tax credits and manage their claims online on GOV.UK. Customers can log into GOV.UK to check on the progress of their renewal, be reassured it’s being processed and know when they’ll hear back from HMRC.
The UK Government has recently announced a Cost of Living Payment of £650, payable in two separate lump sums of £326 and £324, for households receiving certain benefits or tax credits, to help with the cost of living. If receiving tax credits only, they are eligible for each payment. HMRC will contact them and issue payments automatically, with the first being made by the autumn. Customers do not need to contact HMRC or apply for the payment.
More information on the Cost of Living Payment, including eligibility, is available on GOV.UK.
Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check. If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.
As the deadline for renewals approaches, customers hurrying to sort out their accounts could be more vulnerable to scammers.
HMRC is warning people that if someone contacts them saying that they are from HMRC and wants the customer to transfer money urgently or give personal information, they should never let themselves be rushed. HMRC is also urging customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name.
The department urges people to take their time and check HMRC’s advice about scams on GOV.UK.
Find out more about renewing tax credits claims.
323,700 customers are yet to renew their tax credits ahead of the deadline, with HM Revenue and Customs (HMRC) reminding them to do so by 31 July – or their payments will stop.
Tax credits help working families with targeted financial support – so it’s important that customers renew before the deadline to ensure they don’t miss out on money they’re entitled to.
Customers can renew their tax credits for free via GOV.UK or the HMRC app.
Renewing online is quick and easy. Customers can log into GOV.UK to check on the progress of their renewal, be reassured it’s being processed and know when they’ll hear back from HMRC.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There’s just one month to go for our tax credits customers to renew. It’s easy to do online or on the HMRC app – search ‘tax credits’ on GOV.UK.”
Customers choosing to use the HMRC app on their smartphone can:
HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.
If there is a change in a customer’s circumstances that could affect their tax credits claims, they must report the changes to HMRC. Circumstances that could affect tax credits payments include changes to:
· living arrangements
· childcare
· working hours, or
· income (increase or decrease)
The UK Government has recently announced a Cost of Living Payment of £650, payable in two separate lump sums of £326 and £324, for households receiving certain benefits or tax credits, to help with the cost of living.
If tax credits only, they are eligible for each payment. HMRC will contact them and issue payments automatically, with the first being made by the autumn. Customers do not need to contact HMRC or apply for the payment.
More information on the Cost of Living Payment, including eligibility, is available on GOV.UK.
Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check. If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.
HMRC is urging customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name. HMRC is also warning people that if someone contacts them saying that they are from HMRC and wants the customer to transfer money urgently or give personal information, they should never let themselves be rushed.
The department urges people to take their time and check HMRC’s advice about scams on GOV.UK.
