Guide to Finance

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Small & Medium Enterprises

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This unclaimed benefit was the one offered by the valuation officer of the Valuation Office Agency that fixes the rateable value of business enterprises. These values are subject to change every five years. Businesses with a rateable value below ?5,000 are eligible for a tax relief of 50 per cent and even holders of more than one property can stake claim to this relief provided the additional properties do not have individual rateable values exceeding ?2,200. Many entrepreneurs were not aware of the latest revision.



Given below are certain points that are meant to serve as a reference for businessmen to claim tax relief. These are only guidelines and they can be clearly specified by a lawyer or an accountant.

  • The expenditure incurred on advertisements, building or plant repairs, marketing campaigns for a particular year can be deducted from the profits to claim a tax rebate.


  • From April 2006, small enterprises that spend on the purchase of plant and equipment were eligible for a first year allowance of 50 per cent while the rate of FYA for medium sized enterprises has remained unchanged.


  • The entrepreneur can purchase new industrial buildings and qualify for writing down allowance of 4 per cent on cost.


  • If the Balance Sheet contains a specific mention of the bonuses paid to the directors and staff then a provision can be made in the annual accounts.


  • An allowance can be made for expenditure involved on entertainment and gifts.


  • Employer's contribution to a registered pension fund is tax allowable since April 2006.


The UK government has allowed some major tax relief measures. These relief measures of the government are to help the existing SMEs and new companies to survive the competition.

  • Research and development tax relief: A major benefit given by the UK Government is in the Research and Development wing, indicating the keenness of the government in helping business enterprises survive competition through innovation and improvement. In fact, less than half (45 per cent) of eligible small and medium sized enterprises are taking advantage of research and development tax relief, and almost a quarter (24 per cent) that haven't claimed are unaware that the incentive exists.


  • The government aims to provide relief by reducing the taxable profit of enterprises that carry research & development. Companies can also claim cash back relief from losses. Over 4,500 Small & Medium Enterprises are claiming a tax relief of ?250 million. Mere purchase of the latest technology does not qualify a company to claim relief, the technology should be put to use to develop new products and services or improve upon the existing versions.

  • Tax relief for the cost of intangible assets: Business enterprises have to spend on creating, accessing or developing intangible assets, and the Government of UK has given a tax relief for the cost of intangible assets. Intangible assets are those non monetary assets that cannot be seen or physically measured but are created; like the intellectual property developed over a period of time or the goodwill gained by the company.


  • Hardship relief: Under Section 49 of the Local Government Act 1988, authorities have the power to award a relief of 100 per cent for hardships encountered by an entrepreneur. This relief can be granted to companies who claim that they could carry business no more if they are not granted the relief. While submitting an application for 'Hardship relief' the businessman must prove that all the alternate means for obtaining credit had been tried albeit unsuccessfully and the business will be severely affected if the council still enforces payment.


These are some of the tax relief measures that are designed to help the business units develop and survive in the competitive filed. These relief measures are open to all the tax paying businessmen.
Small & Medium Enterprises
Search Engine Optimization or SEO is a marketing strategy which has a vital place of its own in the field of Internet Marketing. As the world is getting net savvy, companies have found that marketing via internet is a very profitable business and reaps heavy returns on a very nominal investment and almost every company came up with a website of their own to market their services and products.

Google, Yahoo and MSN brought on a revolution when they cataloged all these websites into categories and provided a database to the internet using people where everything you want was just a click away. They all launched their own search engines where you can find almost everything from doctors and computers to clothes and vegetables.

All the search engines available on the internet have their own guidelines for evaluating and ranking a website. When you look for a commodity or service on any search engine, it comes up with all the websites it could found related to it but displays them in a sequence most important to least important.

A website is ranked on the basis of its navigation, content, back links etc. A website lagging behind in these areas is ranked low and stays out of site of the user most of the time. This is where SEO comes for rescue. Search Engine Optimization is a process where a website is checked for its quality, content and all other aspects which matter in the ranking of a Search Engine, hence the name Search Engine Optimization.

All the Small and Medium Enterprises have started to realize the importance of SEO and recently investments in SEO have increased remarkably. According to a recent survey, most of the companies have described SEO as a profitable marketing strategy in the coming years. In recent times most of the small businesses have increased their website's performance by using Search Engine Optimization (SEO). The survey states that more than 70% SMEs are now spending on SEO campaigns to increase their sales. SEO is preferred over other marketing strategies as SEO is far more cost effective than other marketing strategies.

Categorizing a website in search engine friendly way is a very lengthy and tedious job and it needs an expert to manage it. Therefore, the SMEs started looking for an option like any SEO Company which can manage their site. Many Internet Marketing Companies grab this opportunity and opened their own SEO Company. These SEO Companies started providing assistance to the SMEs in managing their websites and optimizing them so that they can stay ahead in the competition.

In the running time Google is the leading search engine and has captured about 60% of Market in the field of Internet Marketing. Yahoo and MSN are also not far behind. Many companies started using unfair practices like cloaking to get a better listing on the search engines and over a period of time they become a pain for the search engines. Due to these unethical practices being used by some companies, Google and others have now changed their policy and are very stringent about how to deal with SEO companies. Many SEO companies have been banned by Google and other search engines for using unethical practices. All the companies running or planning to run a SEO campaign are advised to be very careful with their strategies and should ensure to follow the guidelines set by these search engines.

Today SEO has become a necessity for the websites to get a good listing on the search engines. Most of the SMEs have realized this fact and are using SEO to its most and reaping huge benefits from it. Others will be following the suit sooner or later.
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About Author
Both James Wallis & John Hanery are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

James Wallis has sinced written about articles on various topics from computers and the internet, Data Recovery and Infidelity. James Walsh is a freelance writer and copy editor. If you are interested in starting up your own business and would like some help with your se. James Wallis's top article generates over 60500 views. to your Favourites.

John Hanery has sinced written about articles on various topics from Tax Relief, Travel and Leisure. John Hanery share his views about Role of for Small-Medium Enterprises. For more in. John Hanery's top article generates over 1900 views. to your Favourites.
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