Creative industries

This set of sheets helps calculate the relevant adjustments to post to the

Adjustment of profit

sheet in respect of the creative industry profit and loss regime. It also calculates the additional deduction in respect of this expenditure.

To develop these sheets, select

Creative industries

as the

Type of trade

on the

Adjustment to profit

sheet, then the

Type of creative industry

. Depending on the type of creative industry, there may be some further options to select.

The software will then prompt you to insert these sheets.

This sheet tracks income and costs in relation to creative relief. Columns are inserted for each accounting period.

Firstly, make sure that the selector

Is this a pre-completion period?

is set correctly at the top of the sheet (if there are multiple periods, then for each column). This will impact the treatment of losses in the period.

Then enter the income and costs in relation to the creative industry trade as prescribed by the legislation – these are the “Total” costs and income to date. Any amounts in relation to income or costs brought into account in prior periods will roll forward from the prior period calculation. If there is no prior period calculation, enter these manually. Enter the

Estimated total costs

manually for each period. The figures entered in the previous period will roll forward as a memo for reference.

A tax adjustment will then be calculated equal to the difference between the profit or loss in the accounts (attributable to that trade) and the profit or loss recognised for tax purposes under the creative industry regime, as calculated on this sheet. This adjustment will link directly to the

Adjustment of profit

sheet.

At the bottom of this sheet is a section to track the “Core expenditure condition” amounts. In this section, you should enter the U.K. planned core expenditure and Total planned core expenditure amounts for disclosure to HMRC. The core expenditure condition percentage will calculate based on these amounts. If you don’t meet the core expenditure requirements prescribed by the creative industry regime, a warning will show. You should re-review your figures or delete the sheets if you don’t meet the requirements of the regime. Enter the core expenditure amounts manually for each period. The prior year figures are rolled forward as a memo for reference.

Enter the relevant creative expenditure onto this sheet. The total amount of current period expenditure must reconcile back to the

Creative industry profit and loss

sheet. The additional creative industry deduction calculates and links to the

Adjustment of profit

sheet. Enhanced expenditure amounts and other relevant amounts also link to the

Payable tax credits

sheet.

You can use this sheet to manage and track the amount of losses attributable and not attributable to a creative industry business. These amounts are tracked in separate columns on this sheet. The current year losses will calculate automatically on the

Trading losses

sheet. This sheet will also calculate the amount of losses not attributable to creative relief that arose in a post completion period. Columns will be inserted for each Accounting period.