THE BENEFITS OF LEASING
Leasing your equipment is the most tax efficent way of starting a new business. There are many benefits of leasing including minimal monthly payments and excellent cash flow, and of course at the end of the leasing period you own the equipment outright, see below for details.
Leasing Your Capital Equipment
- 100% Tax Efficient
- Every payment you make on a leasing agreement is up to 100% tax allowable and can help to reduce your businesses Corporation Tax bill, as long as you are in profit.
Improves Cash Flow
- Leasing allows you to buy equipment that is important to your business and keep valuable cash in your bank that may be used for other projects that are not as tax efficient.
- The equipment being leased is the only security that is normally required. No property is used as security, though Directors' Guarantees for some limited companies may be required.
- Leasing Plans from £1,000 to 15,000
Fixed rate payments
- All payments are fixed for the period of the lease and are onlv affected by changes in VAT and capital allowances. [img555-L-R]
How leasing compares with a cash purchase
Lease: £26.76 + VAT per week
(paid by monthly direct debits of 115.98)
60 payments (5 years) £6,958.56
Maximum tax relief 40% (£2,783.42)
Cost after tax relief £4,175.14
A huge savings of £824.86 against the cash purchase price
As you can see by the example above the lease can have considerable advantages as long as you are in profit.
For further information or to make a application for a leasing package contact us or call 01268 722500