One of the advantages of leasing as a means of equipment finance is that it is the most tax efficient finance method for your business.
As well as being the most tax efficient, VAT is also paid on each rental and therefore tends to be spread throughout the period, with little or no deposit required. The lessor retains the title of goods throughout the term, which means the payments are shown as an operating cost within the business, allowing greater tax advantages over outright purchase.
When it comes around to paying corporation tax, you will be able to offset 100% of the leased equipment against your tax bill.
To get an example of the tax breakdown, visit our main site.
