Equipment rental services, whatever their type, have several tax advantages for large companies and SMEs that use them. In the renting of printers, these tax benefits are also applied, among many others, and that makes it a service increasingly in-demand among companies.
Leasing services for companies, in general, consist of the rent for a specified time of certain goods. Through renting, the client commits to pay a fixed amount periodically, either monthly, quarterly or annually, during the term of the contract while the lessee, in addition to providing their products or services, will also be responsible for maintenance, insurance and replacement in case of breakdown.
The goods that can be obtained through leasing are not normally part of the fundamental processes of the companies (either in administration or in production), and there are two types:
- Goods of rapid technological obsolescence: computer equipment or printers.
- Goods that need constant maintenance: vehicles.
In short, leasing equipment is a very widespread operation among companies with which they can take advantage of new products or services needed in their day to day operations.
What are the tax advantages of printer leasing?
Options for printer leasing in Reading for example allow companies to have state-of-the-art businesses printing solutions in their offices adapted to their needs without having to tie up their financial resources in equipment purchase.
It also allows the elimination of associated variable costs such as maintenance, repairs, insurance, etc. In addition, it provides an extra flexibility to the company, being able to update the technology, without having to compromise the capital of the company.
The tax advantages of printer, leasing go beyond cost savings. The leasing operations are not reflected in the balance sheets of the company since they are commercial transactions and their control is included in the accounting plan.
The payments for leasing together with the derived VAT, when considered an expense, are deductible, in different measure for self-employed people and companies.
A self-employed person can deduct from their income tax return up to 100% of these payments and is entitled to the deduction of 50% of the VAT paid, provided that the use of the leased equipment is accredited to the development of business activity. On the other hand, companies can deduct the leasing expenses against Corporation Tax and 100% of the VAT paid.
The tax advantages of printer leasing are just some of the benefits. With these and the other advantages of the leasing printers, it is not surprising that more and more companies and self-employed business people resort to these solutions. Leasing office equipment allows your enterprise to focus on product or service development and growth rather than wasting valuable time on non-growth activities such as managing office equipment.