EP NowStoreAcademySupportCommunityProducts by Country
Legal & Compliance Home

UK Government Backtracks on Growth Plan: What it Means for Production

Former UK Chancellor Kwasi Kwarteng was replaced by Jeremy Hunt after 38-day run, and policies reversed in efforts to curb economic downturn
October 18, 2022
UK Govt backtracks on growth plan

It’s been a whirlwind few weeks in UK politics. After former UK Chancellor Kwasi Kwarteng announced his now infamous Growth Plan (also known as the “mini budget”) on September 23, 2022, the pound dropped to a record low against the dollar and Prime Minister Liz Truss and her Conservative government faced widespread backlash.

As a result, on September 14 Truss sacked Kwarteng (just 38 days after he was appointed), replacing him with Jeremy Hunt. On September 17, Hunt announced that he was abandoning almost all of Kwarteng’s policies.

Here's what this latest announcement means for the production industry.

Reversal of IR35 reforms

Arguably the biggest announcement for the production industry was Kwarteng’s decision to repeal the IR35 reforms and shift the burden of applying the rules back to individuals, not employers.

The reforms, which came into force in the private sector in 2021, have had a significant impact on the production industry. Under the reforms, production company and studio end clients must determine a contractor’s employment status and – where they are deemed to be employed for tax purposes – make deductions for income tax and national insurance contributions (NICs) and pay these to HMRC.

Hunt has announced that these reforms will no longer be repealed. As such, the burden of applying the rules will remain on the employer.

Tax cuts

Hunt has abolished Kwarteng’s plans to reduce income tax, which will remain at 20%.

However, Hunt has retained Kwarteng’s plans to scrap the new 1.25% health and social care levy, which was set to be introduced in April 2023. Hunt has also announced that the 1.25% increase in NICs, which was introduced in April, will still be reversed from November 6, 2022. As such, the messaging around the 1.25% increase in NICs, which HMRC requested be included on all payslips, will need to be removed from November 6th.

Support for those over 50 returning to work

Kwarteng’s mini budget introduced additional support to help Universal Credit claimants over the age of 50 return to the workforce. According to the Department for Work and Pensions, this age group has seen a decline in employment rates over the past year.

This initiative wasn’t named as one of the policies which has been abandoned. If it goes ahead, it will be good news for the production industry, which is facing an acute talent shortage. Recent research by the Film and TV Charity revealed that the UK film and TV industry could attract an additional 35,000 workers if it increased its retention of those over the age of 50. With productions struggling to find experienced crew, any government support to help this age group re-enter the workforce is well timed.

How EP can help

As UK payroll tax legislation continues to evolve, the EP team wants to make sure you understand how it impacts your production. If you ever have questions or need support, please don’t hesitate to reach out to us.

Topic: UK

Related Content

10 Notable UK Studios for Your Next Production 

5/23/2023
Headed to the UK for your next film? Check out this list of notable filming locations ranging from...
Topic: Spotlight
More

3 Common Pitfalls to Avoid When Performing Right to Work Checks

5/22/2023
Make sure you’re following the UK right to work rules when contracting and paying film and TV production...
Topic: Legal
More
PGGB and Entertainment Partners: Step up to Production Accountant

Entertainment Partners Supports PGGB’s Step Up to Production Accountant Programme

5/15/2023
Supporting UK crew transitioning to production accountant roles, Entertainment Partners sponsors the...
Screen Alliance Wales

Entertainment Partners Announced as Official Sponsor of Screen Alliance Wales

5/5/2023
EP sponsors Screen Alliance Wales, a leading not-for-profit which grows and promotes the talent, crew and...
Master Series_Square_Tax Considerations Abroad

Tax Considerations for US Productions Working Abroad

5/4/2023
Paying US crew filming outside of the US is complex. Our experts will show you how to navigate the...
Katie Weekes, Managing Director of Global Casting at Entertainment Partners (EP)

Spotlight: Katie Weekes, Managing Director of Global Casting

4/28/2023
Meet Entertainment Partners’ Managing Director of Global Casting

ScreenSkills Launches Movie Magic Training Programme for UK HETV Professionals

4/24/2023
Entertainment Partners supports ScreenSkills’ training programme to upskill UK HETV professionals on Movie...

10 Myths About the UK Film and TV Tax Credit – And Why They're Not True

4/24/2023
The UK film and TV tax credit is one of the most generous in the world. Learn the truth about common...

The Production Accountant’s Guide to Foreign Taxation

4/18/2023
Answers to common questions about tax treaties, tax codes and how paying foreign taxes can impact US...
Master Series Thumbnail Square_UK Tax Relief

What Productions Need to Know about the UK Tax Relief

4/6/2023
Learn about the recently announced reforms to the UK Tax Relief, including the credit increases and new...
EP Newsroom-Thumbnail-PGGB

The Production Guild of Great Britain Announces New Scotland Committee

3/23/2023
Producer Brian Donovan ('His Dark Materials', 'The Rook') chairs the fifth of PGGB’s National & Regional...

The UK Government Announces Changes to Film and TV Tax Relief

3/20/2023
A new audio-visual expenditure credit was introduced with a rate of 34% for film, high-end television...
INDUSTRY NEWS_Square_New VAT Penalty System

Avoiding Penalties Under HMRC’s New VAT System

3/16/2023
Late penalties now apply if you submit your production’s value-added tax (VAT) returns after the deadline...
Topic: UK
More
Woman looking at working schedule on laptop

Types of Working Days in the UK HETV Industry – And What They Mean

3/14/2023
Key types of working days to be aware of if you’re producing scripted TV in the UK.
Topic: UK
More

2023 Tax Year Changes Affecting Your UK Production Payroll

2/22/2023
UK government has announced increases to various rates of statutory pay, which will take effect in April...
INDUSTRY NEWS_SQUARE_uk flag_big ben

Update on UK Film and TV Tax Relief Consultation

2/20/2023
A look at how the UK government aims to modernise existing tax reliefs to better serve film industry...
Topic: UK
More

UK Employment Law Changes Production Companies Should Be Aware Of

2/17/2023
The UK government is considering a suite of legal changes which – if passed into law – will affect your...
Topic: UK
More
EP Blog_SQUARE_London Background Actors

London Productions: Key Things to Consider When Working with Background Actors

2/16/2023
Is your production filming in or around London? Don't overlook the special rules that may apply to your...
Topic: UK
More
Joe Francis-EP International-Lyndsay Duthie-PGGB-Alison Small-Netflix

UK Film and TV Industry Gathers at Inaugural PGGB Talent Showcase

2/2/2023
More than 250 film and TV industry figureheads, newcomers, students, educators and skills bodies gathered...
EP Newsroom-Thumbnail-PGGB

Entertainment Partners and Netflix pledge £500K ($616K) to new PGGB Talent Development Fund

1/26/2023
Entertainment Partners and Netflix have each pledged £250k ($308k) to form a new £500k ($616k) Production...

7 Things Production Finance Teams Need to Know for Budgeting in 2023

1/25/2023
Mark Hammond, VP of International Finance & Ops, shares some of the key factors production finance teams...
EP Newsroom-Thumbnail-PGGB

6FT From The Spotlight Wins Inaugural Earl of Wessex Award at PGGB Talent Showcase

1/25/2023
Film and TV industry charity 6ft From the Spotlight were awarded The Production Guild of Great Britain’s...

Entertainment Partners and Netflix Pledge £500K ($608K) to New PGGB Talent Development Fund

1/25/2023
Production Guild of Great Britain (PGGB) Talent Development Fund will support the development and...

New Union Agreement for Engaging Crew on UK HETV Takes Effect

1/20/2023
Pact/Bectu 2023 agreement makes a number of key changes to the terms and conditions for engaging crew.
Topic: UK
More
Master Series square Thumbnail Pact Bectu Agreement

Understanding the New Pact/Bectu TV Drama Agreement 2023

1/12/2023
Your comprehensive overview of the new Pact/Bectu TV Drama Agreement and how key changes will impact...
Topic: UK
Watch
Virtual Production

The UK Invests in Virtual Production as Content Boom Continues

1/10/2023
The UK is doubling down on Virtual Production infrastructure; learn how and why they’re leading the charge...
Topic: UK
More
Doctor Strange

9 Hollywood Blockbusters Actually Filmed in the UK

12/27/2022
Major US studios are taking advantage of what the UK has to offer, and clever set design and special...
Topic: UK
More

UK Production Incentives All Producers Should Know About

11/17/2022
Don't miss out on the UK's tax incentives, special programs, and national and regional funding...

Behind the Boom: Why the UK is a Hotspot for Production

11/17/2022
Explore the generous industry incentives, talent, and infrastructure available to productions filming in...
ICO Issues 4.4M Penalty

ICO Warns Against Complacency as it Hands Out £4.4M GDPR Penalty

11/16/2022
The Information Commissioner’s Office (ICO) imposes hefty penalty for failing to protect employee personal...

Three Mistakes That Can Slow Down Your Production Payroll (And How to Avoid Them)

11/11/2022
Stay compliant with UK rules and regulations, and get your crew and talent paid on time, with these...

Payroll & Finances

PayrollResidualsSmartStartNew SmartTimeProduction PortalEP On LocationSmartAccountingEP LiveSmartPOCASHétPayPaymaster Rate GuideEP Residency

Manage Multiple Productions

AssetHubSmartHub
Subscribe now

Be an industry insider with EP's
newsletters and alerts

LegalPrivacy NoticeSecurity
© 2023 Entertainment Partners. All rights reserved.