R&D event to help electronics companies to claim tax credit - editorial details

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.

(PRWEB) May 9, 2004 --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 explains, "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this does not mean that the value is lost as it is possible to go back and make claims for years where claims were not originally made."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 key speakers at the event is David Bywater, from KPMG's R&D Tax Relief Group. David worked closely with the NMI on their representations during the recent Government consultation process on R&D tax relief rules. David comments, "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.

"The availability of this tax incentive is a positive measure which is part of a long term strategy, as evidenced by the further improvements to the relief set out in the 2004 Budget and the Government's recent announcement that it will consult on a proposed ten-year investment plan for science, engineering and innovation. It is therefore vital that companies have the systems in place to optimise their claims year on year to capture the significant benefits available." For further details on the event please call 07092 378743 or visit www.nmi.org.uk/events.html

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Editors' notes:
For further information please contact John Gaitanos at the NMI on 020 8376 0490 or Bernice Marks at KPMG on 07789 925294.

About NMI:
The National Microelectronics Institute (NMI) was set up specifically to support the microelectronics industry and assists its continued growth, covering all aspects of design, integrated circuit manufacture, embedded software and product introduction.

The organisation, which was founded in 1996 as a non profit-making organisation, is owned by its members who comprise semiconductor manufacturers, design houses, suppliers to the industry, and regional development agencies and has a proven track record of providing practical support and solutions

About KPMG:
KPMG is the global network of professional services firms who provide audit, tax and advisory services. KPMG LLP operates from 22 offices across the UK with 9,000 partners and staff. KPMG recorded a UK fee income of 1,008 million in the year ended September 2003. KPMG LLP, a UK limited liability partnership, is the UK member firm of KPMG International, a Swiss cooperative.