{"id":2777,"date":"2014-03-27T16:19:43","date_gmt":"2014-03-27T16:19:43","guid":{"rendered":"http:\/\/positech.co.uk\/cliffsblog\/?p=2777"},"modified":"2014-03-27T16:19:43","modified_gmt":"2014-03-27T16:19:43","slug":"uk-tax-breaks-great-but-what-a-mess-it-could-become","status":"publish","type":"post","link":"https:\/\/www.positech.co.uk\/cliffsblog\/2014\/03\/27\/uk-tax-breaks-great-but-what-a-mess-it-could-become\/","title":{"rendered":"UK Tax breaks, great&#8230;but what a mess it could become&#8230;"},"content":{"rendered":"<p>I&#8217;m against tax breaks. that makes me a pariah amongst UK games industry folks. I&#8217;m, not against these tax breaks, I&#8217;m against ALL of them, especially the French, who frankly wanted to have them, but deny them to us. Fuck that. But I&#8217;d be happier if no video game in any country had them, as they are a distortion that is unwelcome. However, in the real world, we have to compete so&#8230;yay? I bet it&#8217;s impossible to &#8216;game&#8217; them right? No new tax law ever has loopholes, thats why Starbucks and amazon pay the same tax rate as me! Lets try anyway&#8230;<\/p>\n<p><em>&#8220;3 points if at least 66% is set in the United Kingdom or another EEA state or set in an undetermined location;&#8221;<\/em><\/p>\n<p>CHECK! GSB2 is set in the star system Zog, so that is an undetermined location. pretty british so far&#8230;<\/p>\n<p><em>&#8220;if there are only three characters depicted in the video game, 4 points if two or three of them are from the United Kingdom or another EEA state or from an undetermined location&#8221;<\/em><\/p>\n<p>CHECK! I&#8217;ll get some tiny 32&#215;32 faces drawn of 3 alien dudes who help with the tutorial. They are from Zog, which is undetermined, so yup, pretty british&#8230;<\/p>\n<p><em>up to 4 points depending on the percentage of the original dialogue that is recorded in the English language or in a recognised regional or minority language as follows<\/em><\/p>\n<p>CHECK! I have plans for zero dialogue, so I can state on oath that 100% of it was recorded in English.<\/p>\n<p><em>2 points if at least 50% of the work carried out on any of the following is carried out in the United Kingdom<\/em><\/p>\n<p>Ok, lets try to define 50% of the work. By time? by cost? By talent? by final contribution to the game? And lets define &#8216;carried out in&#8217;. If I have a design meeting over skype, where was that? here? the other guys place? skypes headquarters? the nearest fiber cabinet?<\/p>\n<p><em>(a) 1 point if the project leader (or, if there is more than one, the main project leader) is a qualifying person;<\/em><\/p>\n<p>Well thats me, so CHECK!<\/p>\n<p><em>(b) 1 point if at least one of the scriptwriters (or, if there are more than three, one of the three lead scriptwriters) is a qualifying person;<\/em><\/p>\n<p>Scriptwriter? is this a movie now? OK, I will write some dialog for the tutorial so thats me too. CHECK!<\/p>\n<p><em>(d) 1 point if the artist (or, if there is more than one, the lead artist) is a qualifying person;<\/em><\/p>\n<p>Yup, CHECK! Thats me too. I don&#8217;t get my hands dirty with actual art though, as lead, I hire other people to actually do my work&#8230;<\/p>\n<p><em>(e) 1 point if the programmer (or, if there is more than one, the lead programmer) is a qualifying person;<\/em><\/p>\n<p><em>(f) 1 point if the designer (or, if there is more than one, the lead designer) is a qualifying person;<\/em><\/p>\n<p><em>(g) 1 point if at least one of the heads of department is a qualifying person;<\/em><\/p>\n<p><em>(h) 1 point if at least 50% of the development team are qualifying persons.<\/em><\/p>\n<p>Wow, that was an easy four points, as all those people are me too. As department head, and half the team, lead designer coder and artist, and scriptwriter, yeah, thats a lot of points.<\/p>\n<p>So far so easy, now how much do I actually GET?<\/p>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\"><em>In summary, the relief allows a company to make an additional deduction in calculating the profit and loss of a game development project.<\/em><\/div>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\"><\/div>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\">Righty ho. This is\u00a0 going to be hilarious. So a game development project is already crazily hard to define. Is this engine work, or project work? What if I&#8217;m coding a routine used in one British and one non-British project? do I still claim the costs of writing that function? What is really an expense for this project anyway? My salary? do I need to keep a time log of which project I&#8217;m on now, for the Inland Revenue? If I have a business lunch where I discuss 2 different games, do we split the cost depending on which one was discussed the most?<\/div>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\">If I run a generic ad campaign for my website that has 50% British and 50% non British games, is that an expense? is the marketing budget included? Define dev budget vs marketing budget for this purpose.<\/div>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\">Lets now have a laugh with income from the game.<\/div>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\">If I have 1 British and 1 non-British game in a bundle, do I split the profits from the sale 50\/50? Ok cool. One of them is GSB 2, one of them is a pong clone I set in piccadilly circus and coded in 5 minutes that&#8217;s bundled with GSB2, so lets split 50\/50 right? You think that&#8217;s unfair? Prove it.<\/div>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\">In fact I might only sell bundles of my games from now on, all bundled with piccadilly-pong, so all of my back-catalog is now British too. Yay!<\/div>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\"><\/div>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\">Some of this might not work, but some will, and people whose entire job is to find exploits will. So the 2 pages of tax-code for this &#8216;relief&#8217; will become 200 pages, and at that point one-man indies won&#8217;t be able to justify the bureaucracy of claiming.<\/div>\n<div dir=\"ltr\" data-angle=\"0\" data-font-name=\"g_font_224_0\" data-canvas-width=\"368.24\">I&#8217;d love to be proven wrong&#8230;<\/div>\n","protected":false},"excerpt":{"rendered":"<p>I&#8217;m against tax breaks. that makes me a pariah amongst UK games industry folks. I&#8217;m, not against these tax breaks, I&#8217;m against ALL of them, especially the French, who frankly wanted to have them, but deny them to us. Fuck that. But I&#8217;d be happier if no video game in any country had them, as<\/p>\n<p class=\"text-right\"><span class=\"screen-reader-text\">Continue Reading&#8230; UK Tax breaks, great&#8230;but what a mess it could become&#8230;<\/span><a class=\"btn btn-secondary continue-reading\" href=\"https:\/\/www.positech.co.uk\/cliffsblog\/2014\/03\/27\/uk-tax-breaks-great-but-what-a-mess-it-could-become\/\">Continue Reading&#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2777","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/posts\/2777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/comments?post=2777"}],"version-history":[{"count":1,"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/posts\/2777\/revisions"}],"predecessor-version":[{"id":2778,"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/posts\/2777\/revisions\/2778"}],"wp:attachment":[{"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/media?parent=2777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/categories?post=2777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.positech.co.uk\/cliffsblog\/wp-json\/wp\/v2\/tags?post=2777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}