Office Furniture Leasing

Office furniture leasing is a tax efficient and cost effective method of achieving your ideal space whilst retaining cash in your business.

It’s a very established form of finance for other business assets such as company vehicles, but the benefits apply equally or more so, to commercial interior projects such as workplace furniture and fit out.

If you are embarking on a workplace furniture project you don’t have to use cash reserves or bank loans to fund the project. Instead of tying up large amounts of capital in a depreciating asset, a smarter alternative for more financial flexibility is to use a lease facility and keep your cash available for higher returns elsewhere.

Why lease office furniture?

Tax Benefits

Lease rental payments are 100% allowable against taxable profit. As the only method of finance offering these tax savings, leasing is the most tax efficient method of financing office furniture. In some cases it can even work out cheaper than paying cash!

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Maximise Cashflow

Leasing means no large up-front payment so you retain cash in your business, freeing up valuable working capital. Invest cash in something that will show a return rather than furniture, which depreciates!

Credit Lines Unaffected

Office furniture leasing leaves your bank credit lines intact and free for other business development or investment purposes.

Fixed Payments

Monthly payments are fixed for the duration of the lease period making budgeting simpler, forecasting more effective and eliminating unexpected variations such as increases in interest rate.

Match Your Lease

Spread the cost of fitting out your work space over the same period as your building lease or up to the break in the lease.

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Maintain Quality

Spreading the cost allows you to achieve the project specification of your choice, not make short term compromises based on budget. Since payments are an operational expense, your capital expenditure (CAPEX) is unaffected.

Frequently Asked Questions

What is the difference between lease rental and lease purchase?

Lease Rental

Payments are 100% tax deductible
Lessor claims the capital allowances, not you
VAT is payable on each rental and reclaimed in the usual way

Lease Purchase

All VAT is paid in advance
You claim capital allowances as per cash purchase – currently fully expensing (see below)
At the end of the period, the assets automatically become your property
Payments are NOT 100% ALLOWABLE

Is there a minimum lease term?

Leasing is a smart method of finance that allows you to ‘rent’ your project and offset the payments against taxable profit. You can pay over 2, 3, 4 or 5 years to suit your budget and the lease on your building.

Who is eligible for furniture leasing?

Any company with a registered UK office can lease, from start-ups or small SME’s to Limited Liability Partnerships (LLP’s), limited companies, PLC’s and not-for-profit organisations. Please note that non-limited businesses would need to finance a project over £25,000 + VAT.

What happens after the lease term is up?

The essence of a lease rental agreement is that you don’t own the assets so consequently the rentals are 100% tax deductible. At the end of the term, you can choose to retain use of the assets for an indefinite period via a one off small “lifetime” rental. Please contact us for full terms and conditions.

Is there a minimum lease value?

The minimum lease value is £1,000 (ex. VAT), there is no maximum amount.

Are there any limitations to what can be leased?

Typically we can arrange finance for everything within a CAT A and CAT B fitout, including partitioning, cabling, flooring, air conditioning systems, ceilings, lighting, kitchens and toilets. Our lease packages can also encompass other aspects including computer hardware and software, telecoms, audio visual equipment, security systems and photocopiers.

This list is not exhaustive so if you’re unsure whether we can arrange finance for a particular project, send us an enquiry and we'll be happy to advise.

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