Subsea Businesses Urged to Claim R&D Credit
21 April 2011
Business leaders in the UK's subsea sector will be encouraged not to leave hundreds of millions of pounds in the pockets of the Government at a seminar hosted by Subsea UK and KPMG in Aberdeen next week (April 27 2011).
Recent statistics from KPMG reveal that while investment in research and development (R&D) in the UK subsea sector has significantly increased, many of the advantages in tax credits available from Government are being left on the table unnecessarily by many businesses.
Alistair Birnie, chief executive of Subsea UK said: "It is not an exaggeration to say that literally hundreds of millions of pounds could be claimed by subsea businesses to fast track the development of new technology and gain a real competitive edge.
"There is a common misconception that the process of applying for research and development tax credits is too time consuming and bureaucratic for such little return, but this is not the case. With the right advice companies may find that they are eligible for a significant tax relief on their expenditure on the development of new technology.
"We encourage anyone involved in research and development whether it is in the application or investment stage to come along to our seminar and find out how to claim the tax credits.”
Jim Purdie, director in the KPMG R&D tax relief team, estimates there could potentially be £168m to £490m available in tax relief. He added: "I often hear companies say they don't do research and development but if your business develops products, processes or services; employs technologists such as engineers or ICT professionals; and if they solve technological problems, then the chances are you may well qualify for R&D tax relief.”
Government tax reliefs have been available for work on developing solutions to technical problems for over 10 years although the take up within the Subsea sector has been very limited. The relief is available to all companies and the only hurdle which has to be overcome is the minimum qualifying expenditure of £10,000.
Jim continued: "In next week's Aberdeen session we will help make companies aware of the benefits they are entitled to which ultimately could save them money. The subsidies are available to help companies grow and more companies should be accessing them to help them gain a competitive edge.”
The seminar will be held from 10.30am – 13.30pm at Subsea UK's office: Innovation Centre, Bridge of Don, Aberdeen.
For more information about this event and how to book, please click here.