Leasing And Rental Solutions

Leasing is a very cost-effective way to invest in business equipment. In addition to its many benefits this option competes very well in simple monetary terms.

Leasing is a smart investment solution which creates flexibility and benefits companies in so many ways.

Here are some key reasons why so many organisations like yours use leasing as an alternative to cash or a bank facility.

Keep cash flow within the business rather than handing over a lump sum for a depreciating asset.

Get the equipment based upon your needs, not just when budgets allow.

Enjoy fantastic tax advantages, payments are tax deductible unlike using cash.

Keep up with the latest technology with the ability to upgrade at any time throughout the lease period.

Structure lease payments to suit customers’ needs and allowances.

Protect existing credit lines by using leasing as an alternative funding facility.

Spread the cost of your purchases in line with the return on the investment.

Spread the cost of the VAT which is paid in instalments rather than as a lump sum up—front (excluding Hire/ Lease Purchase agreements).

Cost Savings Example

Equipment Cost£7,500
Lease Period3 Years

FrequencyQuarterly

Company Tax Rate19%

Cash Purchase
Total Tax Relief

639.30

Year Capital Allowances Tax Relief
1 18% of £7,500 = £1,350 Less 19% = £256.50
2 18% of £6,150 = £1,107 Less 19% = £210.33
3 18% of £5,043 = £907.74 Less 19% = £172.47
Total Tax Relief: £639.30

Lease Rental

Total Tax Relief

1,752.75

Year Capital Allowances Tax Relief
1 4 rentals of £768.75 Less 19% – £584.25
2 4 rentals of £768.75 Less 19% – £584.25
3 4 rentals of £768.75 Less 19% – £584.25
Total Tax Relief: £1,752.75