Welcome to the latest edition of our Arts and Culture Briefing created to help leaders, trustees and finance teams navigate the practical issues shaping the sector.
Across the following pages, our authors explore the financial, tax, employment, risk, and governance themes that matter to organisations delivering cultural, charitable and creative activity in a changing environment.
Our briefing begins with my article on SORP 2026, setting out what arts and culture finance leaders should be thinking about now as the new framework changes income recognition, lease accounting, reporting tiers and the expectations placed on Trustees’ Annual Reports. This article is designed to move the conversation from awareness to action, helping organisations prepare before the new requirements become a yearend challenge.
Alice Palmer, Senior Manager and Sally Gatward, Manager, then consider Cultural Sector Tax Reliefs, looking at the opportunities available to theatres, orchestras, museums and galleries, alongside recent rule changes and areas of increasing HMRC focus. Alice also contributes a further article on international Gift Aid implications, offering practical insight for organisations with overseas donors, global fundraising activity or international charitable connections.
Employment and workforce compliance are also a key focus. Nick Bustin, Director and Head of Employment Tax, examines the risks around visa conditions, working hours and National Minimum Wage compliance, before turning to HMRC’s phased introduction of mandatory payrolling for Benefits in Kind. Together, these articles highlight the importance of clear data, robust systems and early communication with employees and advisers.
Rakesh Vaitha, Director, brings the lens of resilience and risk management, exploring how arts and culture organisations can better understand critical suppliers, third-party dependencies, cyber exposure and continuity planning. His article reflects the reality that successful cultural delivery increasingly depends on strong governance, operational preparedness and well-managed external relationships.
This edition will also feature a VAT insight from Phil Salmon, examining the Capital Goods Scheme and the long-term VAT implications of major capital projects. His article highlights the importance of understanding ongoing compliance obligations, particularly where changes in use can trigger significant adjustments years after an investment is completed.
Taken together, the articles provide a practical guide for arts and culture organisations looking ahead: how to respond to technical change, protect income, manage people and suppliers, and explain financial and operational decisions clearly to trustees, funders, regulators and stakeholders. I hope you find this edition informative as it offers useful insight, timely prompts for discussion, and practical actions to support confident decision-making in the months ahead.
If any of the topics raise questions for your organisation, please do get in touch with the article authors, me, or your usual contact. We would be delighted to discuss how these developments may affect your organisation and look forward to sharing further insights with you in our next edition.
Read the full briefing below!
