Firms need to cash in on R&D potential

PEOPLE in lab coats are not the only ones who can apply for research anddevelopment tax credits, a regime which could create thousands of jobs with a 10% adjustment, says a new survey.

A third of business leaders would recruit new staff if the present 25% R&D tax credit was increased to 35%, according to KPMG’s 2009 R&D survey. Small, medium and large companies all said they would create new research jobs under a revised tax credit regime.

To date, only 17% of those surveyed have ever claimed R&D tax credits. By contrast, 28% have applied for R&D grants. With such a low take-up to date, the job-creating potential seems huge for a relatively minor adjustment to the tax credit regime, according to Cork-based KPMG tax partner Michael Lynch.