If it is the same as leasing a van, then 100% of your costs regarding leasing go against tax (not the VAT element though).
But after 5 years it balances out apparently, at least in regards lease purchasing a van...or was that 7 years?
I'm sure that when you purchase equipment or vehicles you claim a percentage as Kiral has said, but I thought that continued to a zero point.
With leasing it is different, it is the cost of leasing that goes against tax, the equipment doesn't belong to you, so it's value is irrelavant.
If you lease year on year then eventually what you spend on leasing will exceed any tax savings you had.
With vehicle leasing, there are ways around it, i.e. lease back or lease purchase, this way at the end of an agreed term the vehicle becomes your own, but at the end of the lease you are not allowed to own it! The leasing company tell you at the start of the lease what the residual value of the vehicle will be at end of term, and you either pay up that lump sum, or it is costed into your monthly payment so that at the end of term the vehicle is yours with no further monies being exchanged.
And unlike hire purchase, the ENTIRE cost of the lease goes against tax (VAT not withstanding of course).
Mt mind has now fogged up
but that is the way I am going to be getting my own van.
I don't know whether this method can be applied to WFP systems though, I guess that depends on how the likes of Ionics do their leasing.
The best person to answer your question though, and at no more than the cost of a phone call............is the tax man himself
Wear a garland of garlic, sprinkle the phone with holy water and they are quite safe to talk to...if you call on them in person, don't forget to take a wooden stake and a heavy mallet...just in case
Unlike the VAT men, they do have a heart for the stake (it'll take some finding, but its there somewhere
)
Regards,
Ian
