The Main Tax Benefits, When Picking Our Rental Options.

Why should you rent with us today?

It’s probably a good time to remind you that rental is 100% tax deductible. This means that you can use rental as a method of reducing your tax bills.

All your payments made for the equipment you have on hire from us can be written off against your company’s tax bill. For any profit-making business, this means a substantial saving in the real cost of acquiring equipment by lease rental. This could mean a saving of between 20-40% of the rental payments, depending on the rate of tax you pay.

Payments on rental are written off as direct operating expenses, rather than a debt or outstanding liability, thus reducing short term taxable income. Any capital allowances are passed on to you, and lease payments can be offset against taxable profits.

VAT can also be reclaimed on monthly payments. This status as a “lease”, as opposed to a “liability” on a company’s balance sheet, is something the banks like to see, which is why a rental can be attractive. For this reason, rental is often referred to as ‘off-balance sheet’ financing – a tremendous advantage to both large and small businesses. Find out more about renting and leasing here.