Task 8: Other Considerations for Businesses
Finance - what sources of funding exist within the creative industries?
One method of funding creative businesses is through public investment, which can be acquired from many organisations such as:
- Arts Council England
- Creative England
- Arts Impact Fund
- BFI (British Film Institute)
- Innovate UK
These companies will provide funds to creative businesses, although some will only provide funding to very specific sectors in the creative industry. For example, the BFI provides funds to film and media production companies.
Other creative businesses may fund themselves using personal resources, profits from existing enterprises, a government grant, a bank loan, or private investors.Insurance - what types of insurance exist for the creative industries?
Creative industries can receive many forms of insurance, an important kind of insurance that they get is PI (Professional Indemnity Insurance) which protects business owners, freelancers, and the self-employed if clients were to claim that their service wasn't up to their standards and possibly sue them.
It will protect you if:
- You make any mistakes or the client claims that they've experienced financial loss as a result of your work.
- You break the terms of a contractual agreement.
- You become part of a dispute over intellectual property.
A PI policy will cover defense costs if any of these situations were to arise.
Another kind of insurance that they get is EL (Employers Liability Insurance), which they are legally required to have regardless of their staff being full-time, part-time or freelance. This kind of insurance provides creative businesses with the cover needed if an employee were to injure themselves at work, as well as help pay for legal representation if a claim was brought against them.
PL (Public Liability Insurance) can provide cover if either you or one of your employees causes injury or property damage to a third party.
Another form of insurance is Tax Enquiry & Legal Expenses Insurance. This provides cover for representation costs if an HMRC (tax collection) investigation so you don't have to pay upfront yourself. It also covers:
- Employment disputes
- Legal defence
- Contract disputes
- Debt recovery
- Personal injury
- Property protection
- Tax protection
- Identity theft protection
- Statutory licence appeal
- Jury service and court attendance
Working from home - what are the considerations?
When working from home, employees might be able to claim tax relief for additional household costs if they have to work at home on a regular basis, either for all or part of the week. This includes if they had to work from home due to COVID-19. Employees cannot claim tax relief if they choose to work from home.
You may be able to claim tax relief for:
- gas and electricity
- metered water
- business phone calls, including dial-up internet access
Business rates - what are they?
Business rates are taxes paid on properties such as shops, offices, pubs, warehouses, factories, and holiday rental homes/guesthouses. You would have to pay business rates if you are using these buildings or part of them for non-domestic purposes.
They are designed to help fund services in a local authority. They are calculated using a property's 'rateable value', which is a property's estimated value on the open market. You can get help with your business rates from the Valuation Office Agency (VOA) if you believe your relateable value is wrong.
Geography, transport, and accessibility - does it matter where a company/organisation is based? Does distance matter?
Where a company/organisation is based is very important as there are many geographical factors that can affect a business such as:
- Location: This can affect how accessible a business is to both employees and customers. If it's in a densely populated area like a city, it'll be easier to find and access rather than it being in a rural area. The more convenient a business is to access, the more customers will be interested in purchasing its products/services.
- Population: If the business is based in a location with a large population, then there will be a lot more consumers for a business to gain.
- Other Businesses: Businesses need to take into consideration what competition they may have within their area. If they're based somewhere with a lot of businesses that have similar products/services, then they're less likely in being successful.
Links Used:
https://cic-media.s3.eu-west-2.amazonaws.com/media/322389/creative-industries-routes-to-finance.pdf
https://www.caunceohara.co.uk/important-insurance-for-creative-media/
https://www.gov.uk/tax-relief-for-employees/working-at-home
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