Weathering the Storm – support for our business partners!
As a Valued partner of Lease UK we thought we would remind you that in addition to offering leasing to your customers, we also have a range of finance options that can benefit your business too!
If you are looking to invest in equipment, your business will benefit from exactly the same Lease and Lease Purchase Tax savings as your customers currently receive.
As an independent broker Lease UK can help with any of the following:
Asset Finance via a Lease or Lease Purchase
Opting for a Lease enables you to offset the total rentals payable in each Tax year against Corporation Tax reducing the real cost of the agreement . With the rate of Corporation Tax increasing to 25% from April 2023 on profits over £250k the amount of tax relief will similarly increase. Opting for a Hire Purchase you are able to generate 130% first year allowance (100% until after March 2023), together with tax relief on the interest paid each year as a business expense, helping to mitigate your tax. In this way your will be able to put the whole of the value of the equipment against this year’s tax bill in addition to being able to recover the VAT immediately if you are VAT registered.
Refurbishments, Working Capital and Business Loans
Our unsecured loan facilities are available to help you invest in your business whilst controlling the budget.
Recovery Loan Scheme
Lease UK are accredited to arrange finance through RLS3 which is backed by the UK Government.
Vehicle Finance
Lease UK have access to a wide bank of funders who are experienced in offering finance for Vehicles.
In Addition Take Inflation into Consideration
The continued high level of inflation is a major factor affecting all business decisions as it has the effect of reducing the value of money over time.
For this reason a fixed price finance agreement represents particularly good value currently. Rental payments are fixed for the term of the agreement and therefore will not rise in line with the rate of inflation. Therefore the real cost will decrease at a rate proportional to the rate at which general prices are increasing.
As an example a fixed rental of £500.00 today, if inflation is at 5% for the next five years would equate to a rental of £391.76 in real terms by 2027.
| Year @ January | Fixed Rental | Rental @ December |
| 2023 | £500.00 | £476.19 |
| 2024 | £500.00 | £453.51 |
| 2025 | £500.00 | £431.92 |
| 2026 | £500.00 | £411.35 |
| 2027 | £500.00 | £391.76 |
If you factor in the 130% Super Deduction Allowances available until the end of March 2023 then this is seriously worth considering.
Investing sooner rather than later in any Asset that will help sustain and grow your business in what might be considered trying times!
To discuss further, please contact us on:
01372 466955 or [email protected]