Budget news & other campaigning

We have looked at the budget through the lens of Making Music members, and there are a few points to draw to your attention. 

Orchestra Tax Relief (OTR) has not been extended to choirs on this occasion. We were not surprised, as we knew government had bigger fish to fry this time around. 

But we will not give up! We have 40+ organisations supporting this campaign, including UK Music, the Independent Society of Musicians, the Musicians Union, the Charity Tax Group (full list), and: a Spring Spending Review coming up. 

That will provide the framework for government spending for the next three years, so Making Music will make a submission to it. It means between now and January is an excellent time for you to write to your MP and ask them to tell the Chancellor what a difference this tax relief could make to your choir. That difference can be seen in members who have been claiming OTR for some years, with some having doubled or tripled their concert budgets and invested in their groups’ development. See more info, data and case studies  

There was good news on OTR and Theatre Tax Relief (TTR) in the budget: the previous government set higher rates than pre-Covid for these in the Spring budget; we were concerned the new government might not stick with those commitments - but they have: 40% TTR and 45 % OTR rates are here to stay.  

If yours is an instrumental group of 12 or more instruments (of any kind) or a group staging shows, consider claiming OTR or TTR: you do not have to be an orchestra (or a theatre) or pay tax in order to claim it. No – it is not dodgy or a tax loophole (questions we encounter frequently): it is like Research & Development allowances given by governments to commercial entities, in a version for music and the arts. 

Few of you employ people, so we imagine not many will be affected by the rise in employers’ National Insurance (though Making Music will be), and the lowering of the threshold for it, which is only partly compensated for by a rise in the allowance you can claim. If you need help with this, get in touch. 

The budget also signals an increased intention to enforce compliance from charities. We understand this refers to the timely submission of information to HMRC. Persistent failure to comply with tax obligations, such as completing a Corporation Tax return when requested by HMRC to do so, may jeopardise entitlement to other tax reliefs, such as Gift Aid and OTR. Please do not ignore requests from HMRC. If you are concerned about how to respond to a request, please get in touch. 

The arts sector on the whole has received this budget with dismay and lambasted the new government for not supporting a sector which is a growth industry and contributes positively to the UK bottom line.  

But the government is spending: on education and on the NHS, so we believe there is now an increased opportunity to highlight the educational and health impacts of music, especially in the two consultations currently open in England. 

The Curriculum and assessment review (England) is open until Friday 22 November and we have just published some information and a help document. 

The NHS 10 year plan consultation (England) is open until Monday 2 December; we will send you more information about this. 

Both of these seek input from everyone, whether or not directly involved with these institutions, as individuals or organisations. Seize your chance to have a say! We will certainly do our best to do so on your behalf at Making Music.