Budget 2020: What It Means For Tech
A budget will never be wildly popular, but what can this Brexit-anticipating financial statement contribute to the wider IT/Tech recruitment sector, our business partners and clients?
Are there opportunities for expansion in areas such as R&D? Can there be growth in the tech sector, and what does it mean for SME creation? Can this urgent budget be utilised as a tech budget, and an opportunity for expansion and commercial creativity?
It is a contingency financial plan which aims to incorporate support strategies if a period of economic shock comes on 31st October as this era is set to bring a large alteration in Ireland’s trading relationships. Here are a few points which stood out to us:
R&D support incentives are a core concern, aiming to benefit small to medium-sized businesses. In terms of future support for R&D, a tax credit of 30% has been announced, this applies to micro-companies and small companies.
This incentivises investment towards and within Ireland. With a roll call of Irish and International clients, we welcome efforts which make doing business easier. Here at Stelfox Cork, we grow along with our SME and Tech startup clients. With financial concessions to these companies, it will aim to deliver planning possibilities, and ultimately jobs!
Reformulations have taken place to this scheme which is tailored to Employers and Investors. This has taken the form of ‘full income tax relief’ in the first year of investment, which promotes confidence and provides much needed additional funds in a time of establishment and expansion.
Investment Limits have been increased to €250,000, with a significant further incentive of €500,000 for those companies aiming for decade-long growth.
Stelfox Cork, at the centre of Cork’s IT Cluster, welcomes the significant investment in Disruptive Technologies. With an increased €10 Million post-budget investment, it makes Ireland look like a future-focused market which expects high levels of technological innovation. This increase brings governmental invested to close to €30 million, and I.T. and Tech will be enhanced by this investment in innovation.
Living City Initiative: Scheme Extended To 2022
LCI seeks to revive urban life, to make city living and city working options sustainable. In Ireland alone, Stelfox has a presence in the city centres of Dublin, Cork and Galway – along with close links to Limerick & Waterford – we are at the core of these urban locations, which can be regenerated due to this attractive scheme.
Clients and Job applicants benefit greatly from being part of Commercial and Residential properties being revived, a true societal dividend!
Corporation Tax: Retains Irish Competitiveness
This key component of Irish revenue has attracted inward investment for generations, the government has stood firm against EU pressures and retained this comparatively low rate (12.5%). With more investment taking place in the Civil Service and Garda technologies also anticipated by the Minister, we at Stelfox look forward to playing a role in finding future innovators who will contribute their software development skills to Ireland’s wider ecosystem.
Along with Intertrade Ireland being allotted a further €2 million and the Department of Business, Enterprise and Innovation receiving €1 billion, efforts are taking place to support the Business community at this time of change. Stelfox encourages job creation within Irish-based companies, and with our burgeoning Contractor Force and Employment Market continues its confidence in Ireland post-Budget and pre-Brexit.
For a chat about how we can help you grow your tech team or help you find your next role, call Stelfox Cork on +353 21 427 3668 or Dublin on +353 1 679 3182. Or email us on [email protected] or check out the range of roles on our website and LinkedIn feed.