Businesses missing out on 'free money'
Article Date: May 10 2007SMEs are still missing out on tax relief for research and development (R&D) projects, according to a KPMG survey of mid-market companies. Over 80 per cent of respondents knew little or nothing about the credits currently available.
Of those who knew only a little about the scheme, over half believed it was irrelevant to their business. David O’Keeffe, head of KPMG’s R&D tax credits team, says that companies are ‘effectively turning their backs on free money’. He adds: ‘Forget the classic images of white coats and test tubes. The vast majority of claims are by companies outside the pharmaceutical industry. R&D is by no means just about blue sky research.’
The survey also revealed widespread ignorance that, as of March next year, the time period over which tax credits can be claimed will be reduced from six to two years. More encouragingly, 84 per cent of businesses who had applied for tax credits found it at least moderately easy to get the claim agreed by the taxman.
O’Keeffe continues: ‘Time’s not yet up for companies to get the maximum benefit from these R&D tax credits but the clock is certainly ticking. SMEs should not assume they don’t qualify.’
