An office fit out can appear daunting for some businesses, particularly as an office relocation is one of the biggest single capital expenses for most companies. Often the project is financed through the company’s cash flow, but there are options to help spread the cost of the move, particularly the fit out itself.
Lease financing is becoming increasingly popular to fund interior projects, as not only does it allow a company to budget effectively by spreading the costs, but it also has great tax benefits too, whilst allowing you to create the workspace that you really want, without compromise.
The key benefits to lease financing are as follows: -
- Tax efficient – Private sector clients can benefit from a 100% tax deductible solution, particularly attractive to those in higher tax bands.
- Free up your cash – rather than spend your cash on a depreciating asset, your cash can be utilised for growth, making your capital work harder for your business.
- Budgeting – Costs are spread and therefore investment decisions can be made far more easily, and your project is not constrained by a strict cash budget. Costs are also fixed for the duration of the agreement in most cases so limited exposure to increases in interest rates.
- Spread VAT – VAT can be spread as it is paid on each repayment.
As all companies have specific tax allowances, our partnering Lease Finance experts will be pleased to discuss the full benefits of the options available to you. In general, tax savings are only relevant to organisations who pay tax on their profits.
