Tax Benefits..
One of the best financial reasons to choose to lease a website rather than purchasing one is the tax advantages involved in leasing assets. Leasing is fully tax deductable in most cases which means our clients are able to reclaim some of their monthly lease payment by writing off the tax from their annual net profit.
The following is an extract from the Business Link website explaining this further:
"The leasing company claims the capital allowances and passes the benefit on to the business customer, by way of reduced rental charges. The business customer can generally deduct the full cost of lease rentals from taxable income, as a trading expense.
Hire purchase and leasing give the business the choice of how to take advantage of capitalallowances. If the business is profitable, it can claim its own capital allowances through hire purchase or outright purchase. If it is not in a tax paying position or pays corporation tax at the small companies rate, then a lease could be more beneficial to the business. The leasing company will claim the capital allowances and pass the benefits on to the business by way of reduced rentals."
For more information regarding this issue, please refer to the Business Link UK
.
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