Lease Vs Buy

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.

Take a look at our lease vs buy example below.

Equipment Cost: £7,500                    Lease Period: 3 Years                    Frequency: Quarterly                Company Tax Rate: 19%

Equipment Cost£7,500

Lease Period3 Years

FrequencyQuarterly

Company Tax Rate19%

Cash Purchase
Cash Purchase

Total Tax Relief

639.30

YearCapital AllowancesTax Relief
118% of £7,500 = £1,350Less 19% = £256.50
218% of £6,150 = £1,107Less 19% = £210.33
318% of £5,043 = £907.74Less 19% = £172.47
Total Tax Relief: £639.30
Cash Purchase
Lease Rental

Total Tax Relief

1,752.75

YearCapital AllowancesTax Relief
14 rentals of £768.75Less 19% – £584.25
24 rentals of £768.75Less 19% – £584.25
34 rentals of £768.75Less 19% – £584.25
Total Tax Relief: £1,752.75

By choosing to lease, the company has saved £1,113.45 in tax relief

Tax Relief

Discover how these tax benefits work in further details.

Why Lease?

1

When leasing you will get your equipment straight away, rather than when budgets allow.

2

A lease option is simple and safe – with the fixed cost throughout the lease period there will be no changes or unpredictability to watch out for.

3

Your business can stay up-to-date with the latest equipment! Leasing provides you with the option of upgrading the equipment at any stage throughout the agreement by simply restructuring the payment schedule.

4

Offset 100% of the rentals against your tax liability to maximise tax efficiency.

Lease vs Buy

Did you know by choosing to lease, you could receive fantastic tax benefits?

We don't just do leasing

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