If you are looking for an alternative to paying 100% of the costs of the machinery up-front, we would be happy to help you obtain lease finance for your purchase.
For those who are not familiar with leasing, here is a quick summary of the potential benefits:
- No major up-front costs – repay the capital as the capital earns you money.
- Lease payments are treated as operating costs and are therefore 100% allowable against pre-tax profits, so the real cost of your lease is dramatically lower than you might think.
- You only pay VAT on the rentals as they fall due whereas on a cash purchase, the full amount of the VAT is payable on day one.
- Cash purchases only attract a writing down allowance against corporation tax or income tax of 40% in year one and 25% thereafter on a reducing balance basis.