TIGA, the network for games developers and digital publishers and the trade association representing the games industry, urged UK games developers to examine whether they can claim Tax Credits and not look a gift horse in the mouth. TIGA research shows that R&D Tax Credits and Games Tax Relief can be important sources of finance for UK developers. TIGA urged all UK developers to explore whether they too can benefit from these reliefs.
TIGA’s research is based on a survey of 52 UK games development companies. The respondents represent a wide selection of different company types, sizes, ages, and market and platform focuses, roughly proportionate to the overall UK industry. Key findings from the survey include the following:
- 75 per cent of respondents successfully claimed R&D Tax Relief over the previous 12 months.
- Of the 75 per cent of respondents who successfully claimed back R&D Tax Credits in the previous 12 months, the average percentage of total costs claimed back was 22 per cent.
- 25 per cent of respondents still do not claim for R&D tax credits, most of whom (69 per cent) are small and micro companies.
- 62 per cent of developers submitted a Games Tax Relief claim in the last 12 months.
- 81 per cent of respondents indicated that they intend to submit at least one project for Games Tax Relief in 2017, and it is likely that some intend to submit more than one.
Dr Richard Wilson, TIGA CEO, said:
“The principal challenge holding back games developers is difficulty in raising finance. Developers can make life easier by using relevant tax reliefs: principally Video Games Tax Relief and R&D Tax Credits. Our research shows that studios successfully claiming R&D Tax Credits are on average claiming back over a fifth of their total costs. Likewise, Games Tax Relief allows studios to claim 25 per cent of qualifying games production expenditure as a corporation tax credit with no minimum or maximum expenditure. These reliefs effectively reduce the cost of development and allow studios to invest more in studios, staff and games.”
TIGA’s membership includes a number of accountancy firms who can help game developers claim R&D Tax Relief and Games Tax Relief. Contact Suzi Stephenson for introductions to these accountancy firms: firstname.lastname@example.org
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TIGA is the network for games developers and digital publishers and the trade association representing the video games industry. Since 2010, TIGA has won 24 business awards and commendations and has been successfully accredited as an Investors in People organisation three times. TIGA focuses on three sets of activities:
- Political representation
- Media representation
- Business services
This enhances the competitiveness of our members by providing benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities. It also means our members’ voices are heard in the corridors of power and positively represented in national, broadcast and UK video game trade media.
Get in touch:
For further information, you can also contact:
Dr Richard Wilson, TIGA CEO: email@example.com