Would you like to buy a new machine or even an entire package but are unsure how to finance it? Why not consider leasing – easy, affordable, and tax beneficial. You could cover the cost of your repayments with just one small job a week – from as little as £30!
If you purchase through a finance provider your order amount would be exactly the same as if you bought with cash or card – we don’t charge any extras, we don’t take commission and you get exactly the same equipment, guarantee and service!
To see our machine prices, have a look at our Professional Machines
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To get an instant quote, or to apply, have a look HERE or click on Kennet’s details below:
The Tax Benefits of Leasing explained:
Leasing converts larger purchase payments into small monthly payments. You can have your new profit-making equipment immediately and keep your cash reserve available.
Rather than investing your precious cash reserves in depreciating assets, you can use them to help increase profits.
Leasing is 100% Tax deductible and all payments made for the equipment are written off against the company’s tax bill. For any profit-making business, this means a substantial saving in the real cost of acquiring equipment by leasing. This could mean a saving of between 20-40% of the lease payments, depending on the rate of tax you pay.
Payments on qualifying leases are written off as direct operating expenses, rather than a debt or outstanding liability, reducing short-term taxable income.
Any capital allowances are passed on to you, and lease payments can be offset against taxable profits. VAT can also be reclaimed on monthly payments. This status as a ‘lease’ as opposed to a ‘liability’ on a company’s balance sheet is something the banks like to see, which is why an operating lease can be attractive.
For this reason, leasing is often referred to as ‘off balance sheet financing’ – a tremendous advantage to both large and small businesses.
Ownership at the end of the lease; once your agreement has finished you will own your equipment outright.
Lease rental is just that, a rental or hire agreement. Title of the goods remains with the leasing company which means the equipment does not show on the company’s balance sheet, therefore does not need to be depreciated over a fixed period. The leasing provider are the ‘third party’ involved within the lease agreements. In effect, the leasing company buys the equipment from the supplier and then sells it on to the customer. This means that the customer can take full advantage of all the benefits of leasing but still own it at the end.
How the tax advantage of leasing works in numbers:
You lease a machine that costs £2350.00 + VAT, over a 3-year term.
For example, 36 monthly payments of £89.56 + VAT
Total paid over the term of the lease = £3224.16
Tax can be reclaimed on the total lease payments over the 3 years, so a total of £644.83
Therefore the net cost of the lease is £3224.16 – £644.83 = £2579.33*
*Your accountant will be able to provide more information. This information is provided for guidance only.
Please note that you will pay interest and charges to the leasing company so always check the agreement so you know what you will be paying. Please always ensure you read your agreement thoroughly as it will be a legally binding agreement with the leasing company.