Feeds

Tax regime fails to help UK technology sector, says PwC

Please stop messing about, Darling

Internet Security Threat Report 2014

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.

Internet Security Threat Report 2014

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.