The Spring Budget: how does this impact you?

Financial worries can have a serious impact on people working in the film, TV, and cinema industry – from day-to-day concerns, to dealing with the unpredictability of our industry and life as a freelancer. For many, it can be difficult to make sense of taxes, budgets, national insurance… the list goes on!

Explore our helpful guide to see how, as someone working in film, TV, and cinema, you might be impacted by the changes announced in the recent Spring Budget.

The impacts on individuals 

National Insurance

The National Insurance contribution rate will be reduced by 2p. 

• This starts from April 2024. For employees, this means a decrease from 10% to 8% and it will amount to around £450 on the average salary. 
• Self-employed people will see changes in class 2 NI (currently fixed at £3.45) and PAYE contributions (reduced from 9% to 6%). Voluntary contributions for pensions are also possible.

Childcare and Benefits 

The child benefit repayment threshold has been raised. 

• Previously, if earnings exceeded £50,000, a charge applied; now, this threshold is £60,000. From April, no child benefit will be awarded if income exceeds £80,000.
• Additionally, from April 2024, working parents of two-year-olds can access 15 hours of free childcare. From September 2024, this benefit extends to all children from the age of nine months. 
• By September 2025, working parents of children under five will be entitled to 30 hours of free childcare per week.

Debt Relief Orders (DRO)

• The cost to request a Debt Relief Order, previously £90, has been abolished.
• Universal credit advances can now be repaid over 24 months, allowing for quicker repayment.

• Household Support Fund – emergency support for the poorest families will be extended for six months.
• Savings – a new British ISA provides investors with an extra £5,000 tax-free allowance on top of the existing £20,000. Note that this does not apply to savings.
• Fuel Duty – frozen at its current level for another year.

The impacts for the industry 

The Spring Budget also introduced targeted measures to enhance the film and TV sector, aiming to strengthen the UK’s position as a hub for creative content and entertainment. This includes:

• Visual Effects Tax Relief: removes the 80% cap on qualifying expenditure for visual effects costs in the audio-visual expenditure credits. This change is effective from April 1, 2025 –  read the Policy Costings to learn more.
• Business Rates Relief for Film Studios: Eligible film studios in England will benefit from a 40% relief on business rates. This relief will be applicable for 10 years, starting from April 1, 2024.
• Audio-Visual Expenditure Credit (AVEC): A new 53% rate of relief has been introduced for expenditure on eligible UK independent film productions. This change is effective from April 1, 2024.