Lease v Buy
By leasing equipment your business could benefit from tax relief on the profits you earn.
Tax relief is also available for cash purchases, so have a look at the examples below to see what is best for you:
Assumptions: |
Equipment Cost £8250.00 | |
| Term 3 years | ||
| 36 monthly payments of £284.63 | ||
| Tax relief @ 21% | ||
Lease Rental |
||
Year |
Monthly Payments |
Tax Relief @ 21% |
| 1 | £284.63 x 12 | £717.27 |
| 2 | £284.63 x 12 | £717.27 |
| 3 | £284.63 x 12 | £717.27 |
| Total Tax Relief | £2151.81 | |
Paying Cash |
||
Year |
Capital Allowances |
Tax Relief @ 21% |
| 1 | 18% of £8250.00 = £1485.00 | £311.85 |
| 2 | 18% of £6765.00 = £1217.70 | £255.72 |
| 3 | 18% of £5547.30 = £998.51 | £209.69 |
| Total Tax Relief | £777.26 |
Notes: Equipment costs and monthly payments assume VAT should be added. The above are for example purposes only and tax relief is based on 21%. Always consult your accountant or financial advisor to see what is best for your business.
Want to find out more about tax relief? Click here
Have you used our automated Quote Generator?
Quote Generator
If you‘d like to quickly find out how much you will be paying per month for your finance, try using our Quote Generator.
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