Purchasing equipment

Acquiring plant and machinery and equipment for your business.

HP Finance

You will incur monthly interest charges on the outstanding credit you are given You can own the equipment at the end of the lease and may be required to make a nominal or Balloon payment at the end of the lease term.

You will get 100% tax relief on the initial purchase value ( in the year of purchase) and on the interest charge you incur on finance.

Equipment leasing

Quite a few of my dental clients prefer this method as they can get repairs and maintenance of the equipment with their contract  and often some forms of equipment are prone to breaking down.

There will be monthly fixed payments of the price. You will get 100% tax relief on this expense.

You don’t usually end up owning the equipment at the end of the lease unless there is payment you can make.

 

Its always good to shop around for the most reliable and good quality supplier of equipment for your business. If you can have a recommendation about them all the better.

Annual Investment Allowance

Companies can claim capital allowances as a tax relief as well on plant and machinery and other items of equipment purchased and used directly in their business. This can be claimed at 100% in the year of purchase upto a certain limit.

 Vehicles

Generally this is inadvisable to keep companies cars unnecessarily in your company. Especially those which are high emission and serve no other purpose then to transport you to your place of work. High emission cars can incur hefty P11D tax charges every year and the capital allowances on these will be low – 8%  of the value of the vehicle every year. Instead why not claim mileage for your business travel or petrol costs instead.