Will HMRC be targeting the Media and Creative Industries?

There has been much discussion in the media relating to the Christopher Lunn tax case and whilst this case continues, the question must be asked, “what does this does this mean for the media and creative industries sector as a whole?” Has the Revenue blacklisted all related businesses as they are now seen as an easy target? Presently we have not seen an increase in enquiries in this sector, but we fear that it could be just a matter of time.

There are two main area that the Revenue may pursue:
1) The value of expenses incurred (such as use of home) and are all of these expenses tax allowable, and
2) Is the business self employed or employed? This brings the old IR35 issue to the front of everyone’s mind.

If asked, can you demonstrate you are truly self employed? If not, a large amount of your expenses will no longer be allowable for tax relief and are you claiming the right amount by way of expenses?

If you want clarification about whether you or your business is compliant, feel free to talk to me – Robert Rawle at Bishop Fleming – via email: rrawle@bishopfleming.co.uk or phone: 0117 9100 250.

www.bishopfleming.co.uk – Specialist Accountants in Media and Creative Industries.