Orchestra Tax Relief (OTR) is the UK's government prime funding mechanism to support orchestral production costs. Financial support amounting to 40% of the core expenditure of the concert or series up to performance can be claimed.
As your trusted partner, our specialist tax advisers will ensure your claim for Orchestra Tax Relief is accurate, compliant, and maximised.
Below are six simple sections to help you understand what Orchestra Tax Relief (OTR) is, how it works and whether you’re eligible.
Orchestra Tax Relief (OTR) is a creative industry tax relief incentive, supported by the UK government, to encourage the creation of orchestral concerts.
OTR offers Orchestra Production Companies (OPCs) a tax rebate against the money spent on producing an orchestral concert.
Orchestra Tax Relief is worth up to 40% of the core production costs of the piece. OPCs can claim OTR on the lower of:
If the company is profitable, the tax relief can be used to reduce a Corporation Tax bill. If the OPC is loss-making, claimants can receive a cash payment from HMRC.
An OPC must meet the following criteria to claim OTR:
There are several conditions to these criteria, so it’s best to contact the experts at Myriad.
You can claim on expenditure for producing the concert or series up to the first performance, as well as travel to and from a venue which is not the usual venue of the company.
You may claim a series of performances with one claim if a letter of intention is submitted to HMRC before the first performance.
Orchestra Tax Relief is claimed by the Orchestra Production Company for each accounting period through the Corporation Tax Self-Assessment process (CTSA). The orchestra production company must complete the relevant section on the Corporation Tax Return (CT600).
The tax return must also be accompanied by the required supplementary information, including venues used and a detailed analysis of the expenditure upon which the relief will be claimed.
You must provide a statement showing all core expenditure broken down by category and UK and non-UK spending.
You'll need to calculate if the concert has made a profit or loss and determine whether any loss can be surrendered for a cash tax credit.
HMRC has a specific approach for calculating an orchestra production trade's taxable profit or loss.
Orchestra Tax Relief (OTR) is a creative industry tax relief incentive funded by the UK government.
OTR supports UK Orchestra Production Companies by offering them a tax rebate against the money they spend on producing the concert, as well as travel to and from a venue that is not the company's usual venue.
To claim Orchestra Tax Relief, each concert is deemed a separate trade. However, a company may elect for a series of concerts to be treated as a single concert and, as such, a single trade.
It sets out the income and expenditure to be included in determining the profits and losses of that trade. The relief is then given through an additional deduction relating to the core expenditure in calculating its taxable profits.
Where the additional deduction results in a loss, this loss can be surrendered for a payable tax credit.
You can claim orchestra tax relief on your concert/performance if:
If you are applying for a series of concerts, in addition to the above, they will qualify if:
Orchestra Tax Relief is claimed by the Orchestra Production Company for each accounting period through the Corporation Tax Self-Assessment process (CTSA). The orchestra production company must complete the relevant section on the Corporation Tax Return (CT600).
The tax return must also be accompanied by the required supplementary information, which includes details of venues used as well as detailed analysis of expenditure upon which the relief is to be claimed.
You must provide a statement that shows all core expenditure broken down by category and by UK and non-UK spending.
You’ll need to calculate if the concert has made a profit or loss and determine whether any loss can be surrendered for a cash tax credit.
HMRC has a specific approach for calculating the taxable profit or loss of an orchestra production trade.
An Orchestra Production Company (OPC) is the company that puts on the concert. The purpose of the tax relief is to support orchestral performances.
To qualify as an Orchestra Production Company, the company must:
Core expenditure is expenditure incurred on producing the concert up to the performance and any travel to and from a venue that is not the usual venue of the company.
Core expenditure does not include any expenditure relating to developing the production, non-producing activities such as financing, marketing and legal costs, or the performance itself.
For example, certain costs may need to be apportioned between rehearsals and the performance itself.
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Is your business registered for Corporation Tax in the UK or are you a partnership with corporate owners?
Have you developed new or improved existing products, processes or services in the last 2 accounting periods?
Does your business have fewer than 500 staff, and either: A turnover of no more than €100 million; or Gross assets of no more than €86 million?
Sorry, you must be a UK limited company or be a Partnership with corporate owners to be eligible for R&D tax credits.
In order to qualify for R&D tax credits you must be seeking to advance science or technology within your industry. As you’ve not developed any new or improved any existing innovative tools, products or services, and not re-developed any existing products, processes or services in the last 2 years. It is unlikely you have any qualifying activity. If you’re unsure, email or call us and we’ll help clarify.
In order to claim R&D tax credits, you need to either employ staff or spend money on contractors, consumable items and other items. If you’re unsure, email or call us and we’ll help clarify.
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Congrats!! Based on your previous answers, you will qualify for the SME scheme. If you’d like some help maximising and securing your claim, please email or call us.
Congrats!! Based on your previous answers, you will qualify for the RDEC scheme. If you’d like some help maximising and securing your claim, please email or call us.
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