Feeds

Tax regime fails to help UK technology sector, says PwC

Please stop messing about, Darling

The Power of One Infographic

Despite the wide range of tax relief available, over two thirds of UK technology companies do not believe the current tax regime fuels enterprise in the UK, according to a survey conducted by PricewaterhouseCoopers.

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 takeup 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.

Copyright © 2009, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Mobile application security vulnerability report

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.