Digital marketing; get a tax benefit!

01 October, 2008

Want a new website but worried about the cost? What if the taxman chipped in?

The good news is that small and medium-sized businesses are now entitled to a tax break on their digital marketing and websites. The new Annual Investment Allowance, which applies to firms with fewer than 250 employees, introduces a £50,000 allowance with 100% tax deduction for certain types of capital expenditure, including digital spend and website costs.

What does that mean? As long as your new website generates sales or saves cost, the cost of developing the website (up to a maximum of £50,000) is 100% tax-deductible.

Potentially, this change could add over £16,000 to your firm's post-tax profit. Your finance director is going to love it - so we've attached an article from http://tax.indicator.co.uk  (search for article TX D 08.21.02) that explains all the details on how to get a tax break on your digital spend and website investment for them. But act quickly - the allowance can't be carried forward from one year to the next, so use it or lose it!

The MD of BGD Group, a top 100 NMA digital design & website design agency Charles Darley, said, "Times may be hard, but cutting back on marketing just makes it easier for your competitors. Regardless of size, the smartest firms now use a range of digital marketing tools such as Pay Per Click, Search Engine Optimisation and e-mail campaigns to drum up new business but without a well maintained website, these efforts could be going to waste. A well-designed website with good digital marketing lets you sell online, gain new customers, build your profile and much more.

At BGD, we create award-winning digital sites we are a top 100 agency with some great creative awards but we still costs a lot less than central London agencies. To find out how little it would cost to refresh your current website or even create a new one, give us a call on  020 7060 1033  or email info@bgd-group.co.uk"