Tax and accounting benefits
With 100% allowances, you can potentially save between 20-40% of the cost of the lease, depending on the rate of tax you pay.
There are
tax and accounting benefits to companies which chose to lease rather than buy. Leasing costs are classified as an expense
rather than a debt or outstanding liability which means that which means that which means that your options for debt financing
or credit remain more flexible.
This status as a rental as opposed to a liability on your balance sheet is also something the banks like to see, says Jeremy Standing, sales director at lease finance firm Key Finance "The finance director or the bank will have covenants about what you can spend. They know how they want the financial accounts to look at the end of the year, which is why an operating lease can be attractive."
In terms of tax, one clear advantage is that a lease is 100% tax allowable, which means that your regular payments to the leasing firm are completely written off your taxable profit for the year. This could potentially save between 20-40% of the cost of the lease, depending on the rate of tax you pay.
View our "True Cost" PDF and see how you could save. (opens in new browser window)
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Steatite have carefully chosen our leasing partner to bring you the best value and flexibility possible.
For example you could acquire the superb Steatite SR150 from just £34.71 plus VAT per month. See our rate chart
Admiral Leasing PLC is a leading independent provider of equipment and vehicle finance, specialising in supplier finance schemes. We are both a funder and broker and, as such, are able to offer the widest range of finance services for all types of organisations from small to medium sized companies up to the largest enterprises and the public sector.