Tax Benefits of Leasing

You have the opportunity to be constantly updating through equipment lease. This way you can make use of the latest technology . It is a well known fact that technology changes very fast and with that there is always a risk involved when you buy an asset. But when you choose to use equipment leasing, there's no need to worry, as you can upgrade to the new technology every couple of years.

Example:

Cost of goods £10,000
3 Year lease @ £963.20 per quarter (1+11)
Total payable = £963.20 X 12 = £11,558.40
You pay £1,558.40 over 3 years in interest
Lease is 100% tax deductible so assuming tax rate is 25%
£11,558.40 X 25% = £2,889.60

Therefore, the lease is effectively self-financing and the reduction in tax to be paid (£2,889.60), more than covers the interest charge (£1,558.40)

Plus ... You have had the use of the original £10,000 for the last 3 years!