Equipment Leasing
Many companies find leasing their IT equipment to be a more cost-effective and convenient solution than buying outright. That is because lease payments are 100% tax deductible and all equipment is maintained by CRM Systems Support.
Business Benefits
Let's say a company wants to buy a new network system comprising of a new server with 10 new PCs, a laptop and a top of the range colour printer, costing a total £10,000 plus VAT.
Outright Purchase
This means an upfront £11,500 investment on delivery and VAT registered companies may have to wait up to three months to claim back their £1,150.00 Over the next three years, companies can claim back 25% of the balance per year against tax – amounting to £5,781.
Lease Rental
In contrast, the company could lease the same equipment over three years, paying £919 plus VAT per quarter. This releases £8,897 from the original budget to maintain a health cashflow or invest in the business.
The main benefit is that every payment is 100% tax allowable against any pre-tax profits. That means that 12 quarterly payments of £919, totalling £11,028, bring a saving of £4,247 in tax over three years.