Leasing Benefits
The benefits of leasing
If you rely on cars and vans to carry out your business, it makes better financial
sense to lease rather than buy.
Leasing:
- Frees up your working capital, improves your cashflow and makes budgeting easy
- Reduces your reliance on ageing vehicles (important for reliability and minimising maintenance costs)
- Gives you a better gearing ratio, as the vehicles do not appear on your balance sheet
- Provides tax benefits, as you can reclaim all the VAT on all servicing and 50% of the contract hire cost. And don’t forget, up to £12,000 of your rental can also be offset against your corporation tax liabilities. (As with purchasing, restrictions apply to vehicles costing more than £12,000.)
With these sorts of financial benefits can you afford not to lease?
