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ABT Office Supplies Ltd
 ABT Photocopier Leasing Agreements

FREE PHONE 0800 389 1304

Photocopier Leasing

Are through a number of leasing companies that are registered members of the Finance and Leasing Association, including Siemens Financial Services (previously known as Shroeder Leasing), an international financial services company, part of the Siemens AG Group, with an international presence in more than 30 countries..  Terms and conditions are written in plain English and full details on total costs payable over the period are crystal clear before the agreement commences.  All agreements are for a fixed amount for a fixed period (any period up to 5 years maximum).

  • Fixed rentals - to allow you to budget.
  • Flexible repayments - to meet your required needs.
  • Flexibility to upgrade - you can benefit from the latest technology at all times.
  • No initial capital outlay - the first payment only needs to be for one quarter rather than the total value of the equipment.
  • Existing borrowings remain unaffected - other credit lines will not be affected.
  • Rentals are 100% tax deductable - all rentals can be offset against taxable profits, therefore making it attractive from a cash flow perspective.

Cash vs Lease

With a simple calculation we can show you the comparison between a hire agreement and a cash purchase. With a hire agreement, tax relief is available on all rentals at the highest tax rate you pay.

A cash purchase will only allow tax relief only on the capital allowances on the equipment. This is currently 40% of the cost in the first year and only 25% in subsequent years based on a reducing balance each year.

Example:
This is a model showing the difference in tax relief available.

Invoice Value
£5000
Lease period
3 Years
Frequency
Quarterly
Highest tax rate
40%
These figures exclude VAT and assume the customer is a tax paying organisation

Option 1: Lease Rental
Tax relief is available on all rentals at the highest rate you pay

Year
Rentals Payable
Total
Tax Relief
1
4 quarters at £511.50
£2046.00
£818.40
2
4 quarters at £511.50
£2046.00
£818.40
3
4 quarters at £511.50
£2046.00
£818.40
Total tax relief over 3 years period:
£2455.20

Option 2: Cash Purchase
Tax relief is only available on the capital allowances on the equipment. Currently 40% in the first year and less in subsequent years.

Year
Capital Allowance
Total
Tax Relief
1
40% of £5000.00
£2000.00
£800.00
2
25% of £3000.00
£750.00
£300.00
3
25% of £2250.00
£562.50
£225.00
Total tax relief over 3 years period:
£1325.00

The Difference

Lease Rental BreakdownCash Purchase Breakdown
Total Payments£6138.00Total Payments£5000.00
Less Tax Relief£2455.20Less Tax Relief£1325.00
Difference£3682.80Difference£3675.00
Difference equals net amount payable after tax relief

From the above example, the benefit received from the increased tax relief covers, or exceeds, the hire charges paid over and above the purchase price of the equipment.

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