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INDUSTRY
www.irishfoodmagazine.com @IrishFoodMag
45
ISSUE 6 2018
succession is simply not on the agenda or there
is no successor within the family. However, it's
critical to put thought into this matter if you wish
to take advantage of the various reliefs and tax-
planning opportunities available.
Digital
Only 28 per cent of SMEs have `perfectly
adequate' broadband for their business while only
7 per cent are doing a significant level of online
trading. With ubiquity of mobile communication
and the rise of ecommerce, Irish food businesses
must stay alert to the opportunities online. From
an online marketing and promotion perspective,
67 per cent of food companies recognise the
importance of social media for their business.
Facebook continues to dominate and is perceived
as the most popular and effective social media
channel by some distance.
R&D
The majority (78 per cent) of food companies
are investing in research and development
(R&D) at varying levels. Company resources
play a key role in determining who invests with
medium-sized companies more likely to invest
in R&D. With constantly changing consumer
trends and a need to differentiate, R&D is an
important tool for any food business. There is
a significant R&D tax credit available of 25 per
cent of relevant spend. This is one of the most
valuable corporate tax credits available but often
is not maximised by SMEs.
The main elements of an R&D tax credit claim
centre around documentation of time, costs and
capital development to facilitate R&D. In addition,
Knowledge Development Box relief can reduce
the tax rate on certain income to 6.25 per cent.
Key takeaways
While optimism levels are high, costs are
increasing; good people are hard to recruit;
Brexit is looming but its potential impact
is underestimated; while putting a solid
succession plan in place is not on the agenda
for enough companies.
IFAC has a team of sectoral specialists, along
with tax, accounting, financial solutions and audit
teams, that can work with SME businesses to
address these challenges and are a trusted partner
who understands the sector and will engage on an
ongoing basis and in a meaningful way.
You can access the full report at:
www.ifac.ie/ifacreport