Leasing, making the purchase of your storage equipment more affordable

At Shelf Space Ltd, we are pleased to offer our customers alternatives to outright purchase on any purchase of over £1000.00 Ex VAT. Working together with proffesional financial organisations, we can offer you competitive leasing packages. Leasing preserves cash flow so you can direct funds to other parts of your business. The asset itself acts as security rather that your business or personal property. Benefits of Leasing There are benefits to choosing leasing as a means of acquiring your storage equipment over buying outright. You may qualify for some tax relief when buying outright however leasing offers better tax allowances.
3 Years
Cash or Hire Purchase Cost - £20,000 – Paid Year 1	Lease Rental Rental £2,090 / Qtr Payable over 12 Quarters
Year 1 £20,000 x 40% = £8,000	Year 1 4 Qtrs @ £2,090 = £8,360
Year 2 £12,000 x 25% = £3,000	Year 2 4 Qtrs @ £2,090 = £8,360
Year 3 £9,000 x 25% = £2,250	Year 3 4 Qtrs @ £2,090 = £8,360
Tax Allowable Expenditure After 3 Years: £13,250	Tax Allowable Expenditure After 3 Years  £25,080
TAX ADVANTAGE OF LEASE	£11,830
Ø Cash purchase only attracts 40% WDA (Writing Down Allowance) in Year 1 and 25% thereafter, against either Corporation Tax or Income Tax on a reducing balance basis Ø Leasing can be 100% tax allowable, because Lease Rental Payments are classed by the Inland Revenue as a Revenue Expense Ø VAT is only paid on the amount of each Lease payment made, whereas a cash purchase requires the full amount of VAT immediately. VAT paid can be reclaimed in full at the end of each quarter BENEFITS TO THE LESSEE Leasing allows you to accurately predict cash flow and keep liquid funds available for core business activities. Rental Payments are fixed and are immune to economic or political climate change. The sheer fact of inflation means the true cost of leasing reduces over the period. In changing market places, leased equipment can be easily and simply upgraded, negating the problem associated with ‘trade-ins’ and rapidly changing residual values. Leasing facilitates the acquisition of essential equipment without waiting for annual budgets, grants, cash flow upturns etc. Our unique ‘Lease Back’ allows you to release capital from already purchased assets. Non tangible products such as software, cabling, training and service costs can be included in a lease package. Leasing allows you to keep free your existing lines of credit with your bankers. Lease repayments are set against taxable profit, providing numerous accounting advantages.

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