Is innovation costing us too much? (1/13/2008)

Too few Welsh companies are aware that they are owed money by the tax man, according to leading financial adviser KPMG.

At the upcoming Cardiff University Innovation Network meeting, KPMG will claim that far too many companies across Wales are unaware that they are performing research and development (R&D) for which they can claim tax relief. Or that they may be eligible to back date claims for up to six years, if they act now.

The Innovation Network, which provides business with networking forums as well as access to the University's expertise, technology and resources in order to solve problems and develop opportunities, is holding an event on Wednesday January 30 to explore just who and what is eligible for Government R & D Tax Credits, and reveal the true value of innovation.

R&D Tax Credits are the biggest single funding mechanism for business R&D provided by the Government. Developed through consultation with business, these Credits are at the heart of the Government’s strategy to raise the levels of business R&D and encourage business innovation. Under the Scheme, businesses can deduct up to150% of qualifying expenditure on R&D activities when calculating their profit for tax purposes.

Paul Thomas, Cardiff University Innovation Network, said: "Usually, businesses worry about owing money to the tax man rather than the other way round, so I am sure this event will be of great interest to quite a few organisations.

We are aiming to show that many companies are performing R&D for which they can claim without realising it, and that is it much more straightforward than imagined, even to back date claims for up to six years."

The free event in the University’s Main Building will consider why investment in innovation is essential for the success of an organisation, the benefits and pitfalls of collaborative R&D, and how to exploit collaboration for long term sustainability and profit maximisation.

Speakers at the event include Simon Jones and David O’Keeffe of KPMG and Dr Richard Taylor from Dow Corning, the global leader in silicone-based technology and innovation.

Note: This story has been adapted from a news release issued by Cardiff University

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