Leasing Vs Outright Purchase

A number of our customers use a lease to acquire their system. This is a highly tax advantageous means of purchase because every payment receives 100% tax relief.

Leases can be arranged for any time period but are usually 12 months, 3 years or 5 years. At the end of the lease period ownership will be transfered to you for a final one off payment.

Example

Outright purchase: £5,000
Lease: £26.00 per week
(Paid by quarterly direct debits of £338)
Normally 20 payments (5 years) £6,760 Maximum tax relief 40% £2,704 Cost after tax relief £4,056

A SAVING OF £944 AGAINST THE CASH PURCHASE PRICE

As you can see by the example above the lease can have considerable advantages.

1. The tax relief can actually reduce your
overall cost
2. You don't have to waste your valuable money on a CCTV system when you can invest in stock and increase your profits.

End of Lease

During the lease period you are renting the system and for that reason you are gaining your 100% tax relief. At the end of the period therefore the equipment is not your property which means in theory you should return it to the suppliers.

However in practice no one does this. We will sell on the ownership of the system for a final one off payment.

Which way to go

Unless you have the cash in your budget with nothing else to spend it on most clients will prefer the lease option. Eitherway we will be pleased to assist you.