Would you like to buy a new machine or upgrade your current equipment but are unsure how to finance it? Why not consider leasing – easy, affordable, and tax beneficial!
Here you can get a quick quote, you may be surprised at how economical it can be. As well as your main equipment, if you purchase a whole package from us then you would be eligible for discounted special prices!
Once you have decided on your wish-list and repayment period, applying couldn’t be easier. We are happy to work with any finance provider you choose, however Focus Leasing have provided a handy link to their online application service, if you would like to make an application through them, please click HERE or you can call them on 01794 525930.
If you purchase through a finance provider your invoice 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 catalogue HERE
Or to see our package prices, have a look at our leaflet HERE
(machine prices & options will be coming online soon)
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 not needing 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 sell 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 advantages 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 £93.34 + VAT
Total paid over the term of the lease £3360.24
19% tax can be reclaimed on the total lease payments over the 3 years, so a total of £638.45
Therefore the net cost of the lease is £3360.24 – £638.45 = £2721.79*
*Your accountant will be able to provide more information. This information is provided for guidance only.
Talk to us! For a bespoke quotation please contact us, we’re always happy to help you put together a comprehensive package that suits your requirements, plus sometimes we have special offers and package deals that are not always available online! Call us: 01763 208222.