LONDON The slow take up of R&D tax credits by businesses has prompted the National Microelectronics Institute (NMI) to host a workshop aimed at informing and encouraging technology companies to claim the credits that will help them invest in further research and development.
The event, on 21 May at the DTI conference Centre in Victoria Street, London is aimed at helping to demystify the tax relief, focussing on the practical aspects of how companies can make a successful claim.
John Gaitanos from the NMI explained, “The technology industry thrives on the benefit of research and development (R&D). To encourage UK companies to continue to invest in R&D, the Government introduced R&D tax relief for small and medium sized companies in April 2000 and for large companies in April 2002. Despite the value which these reliefs provide we are aware that many companies in this sector are still not claiming the benefits available. However, this does not mean that the value is lost as it is possible to go back and make claims for years where claims were not originally made.”
One of the speakers at the event, David Bywater from accountants KPMG's R&D Tax Relief Group, worked closely with the NMI on its representations during the recent Government consultation process on R&D tax relief rules.
Bywater, said, “The definition of R&D for tax purposes is, in practice, far wider than people in industry often think. Many companies are uncertain about whether their activities qualify, and also what costs are admissible. As a result companies are either failing to make claims, or are not claiming their full entitlement.
Visit the NMI website for more details of the event.