Its survey found that measures introduced in the 2009 Budget are
not reaching the majority of the domestic technology industry. Over
50% of technology companies have failed to make use of tax R&D
credits, while nearly 80% have not taken advantage of environmental
relief.
Barry Murphy, PwC's UK technology leader, said the low take up
may indicate that tech companies do not view what they do as
innovative, or are put off by a complex claims process.
"Many UK tech companies assume they are not at the cutting edge
of technology, therefore don’t apply, but are actually entitled to
that all-important relief," said Murphy. "In this digital age, UK
competitiveness is reliant on innovation and technology."
"It’s now time for people to review their claims and tap into as
much tax relief as possible," he said. "This is particularly
important in a tough investment environment,” he said.
Over 90% of those surveyed called for a reduction in tax
rates.
"This is a common call but it is allied to the need for simpler
systems that are less subject to unexpected change in every [Pre
Budget Report] and Budget," said Murphy. "Getting the policies
right to encourage early and second stage capital investment is key
to future growth in UK technology, however constant tinkering with
the tax regime causes companies to disengage."
Murphy said that technology leaders are committed to the
long-term success of the economy, and need stability to enable them
to make sensible commercial decisions.
"They are calling on Government to provide more certainty in the
tax regime and regulation more broadly," he said.
The Government's Pre Budget Report is scheduled for 12.30pm on
9th December.
Disclaimer: We hope you find OUT-LAW’s content useful. It’s prepared by the lawyers at Pinsent Masons. Please remember, though, that it’s intended as general information only. It’s not legal advice. If that’s what you’re seeking, please
contact us. See also: our
full disclaimer
