By Dr Richard Wilson –
The principal challenge holding back many small businesses, including video games developers, is difficulty in raising finance. Yet while various schemes exist to help businesses access capital, some firms look a gift horse in the mouth and do not take advantage of them.
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, Video 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 games, staff and studios.
TIGA’s membership includes a number of accountancy firms who can help technology and creative businesses, including video game developers, to claim R&D Tax Relief and Video Games Tax Relief: contact Suzi Stephenson for introductions to these accountancy firms: suzi@tiga.org
So don’t look a gift horse in the mouth. Be a horse that’s lead to water – and drink.