cash vs lease
contact us NOW for a leasing quotation |
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Which is Cheaper? |
Example based upon equipment cost at £8,250.00 |
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cash option |
If cash is used to purchase your equipment, you can claim writing down allowances against the equipment to reduce tax.
However, by using cash, you will lose interest due to you from your bank.
Interest lost on money (assuming savings rate at 5% per annum) over 3 years:
Total interest lost = £1,300.41
Total cost, including interest lost = £9,550.41 (A)
Less writing down allowances in:
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Year one |
40% |
£3,300.00 |
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Year two |
25% |
£1,237.50 |
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Year three |
25% |
£928.13 |
Total writing down allowances over 3 years = £5,465.63
Tax assumed at 21% = £1,147.78 (B)
Total cost of buying machine as a cash purchase is therefore:
(A)-(B) = £8,402.63 | |
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rental option |
A Rental solution allows you to spread the cost of equipment.
This means that a return on investment can be achieved from day one. Also each rental is fixed and can normally be fully offset against taxable profits.
Example: 3 year monthly rental at £291.75
Cost of rental over 3 years = £10,503.00 (C)
Less interest saved by keeping cash in bank = £1,300.41 (D)
Total tax allowances over 3 years = £10,503.00
(100% of each rental)
Tax assumed at 21% = £2,205.63 (E)
Total cost of buying machine using a rental solution is therefore:
(C)--(D)-(E) = £6,996.96 | |
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savings |
USING RENTAL RATHER THAN CASH
SAVES YOU £1,405.67 |
Disclaimer: The above examples are for illustration purpose only and
taxation examples are in line with 2006 Inland Revenue guidelines. | | |
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Nationwide Coverage |
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With our partners we have many clients in Milton Keynes, Bedford, Oxford, Northampton, Cambridge and London. We supply in London, Milton Keynes, Bedford, Oxford, Northampton, Luton, Aylesbury, Buckingham and across the UK | |
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Structured cabling |
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category 5 & category 6 cabling
We install category 5 and category 6 structured Cabling across the UK and have many successful installations in Milton Keynes, London, Oxford, Bedford, Northampton, Cambridge, Luton, Watford and the Home Counties. | |
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business mobiles tarriffs |
We work with all 4 major mobile networks. By implementing the right company mobile tarriff we can cut costs by up to 45%. We work with Vodafone, O2, Orange and T-Mobile. We also support mobile data packages and Blackberries | |
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recent projects |
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special offers |
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 we can provide you true 0% finance on selected Avaya IP Office phone system packages with prefered edition software. You can spread the cost over a three year period with 0% interest and no upfront charges to pay! | |
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manufacturers |
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