[daysdeepclean]

I'm itching to get into the world of TM! Am I better of waiting and buying or is leasing a good option?

Colin :)Day

[kerrpmiddleton]

colin , for tax and to spread payments ,leasing is good but in to days climate, u can get very cheap loans , get ur self agood bussiness plan and ur bank will give u a loan ,the thing about leasing is u pay back double what the origanal cost of the machinery , and takes about say 5-6years and if u want to trade it in say in  3yrs, u wood still have to pay the whole balance of the lease , i once bought a roto- vac , and 4 yrs later , after finaly paying it of , i worked out i could have bought two roto vacs , accountants , sales people, aways weight up the tax benefits, but it ur hard earned, cash thats paying all the extra payments , get a loan,

[Ken Wainwright]

Talking to my accountant on Monday, he tells me that capital equipment purchases are now 100% tax deductable in my new financial year onwards. If you have a loan for the purchase, the interest is also 100% tax deductable, so there doesn't appear to be a tax advantage in leasing at present.

For vehicles, it remains the same. 40% year one, then 25%.

My own view on leasing is that it is a good option for a company as there are significant cash flow advantages and employees. For myself as an owner/operator, if I had a lease and was injured,  taken ill or lost my driving license, it may be difficult to get out of the lease. If I was purchasing, I always have the option to sell the item(s) and so relieve the pressure.  I have been in this unfortunate position in the past and was so glad that I didn't lease.

Safe and happy cleaning
Ken

[Buster Ingram]

Good advice Ken,
Leasing always looks tempting from the outset but in this current climate your advice will pay dividends if anyone goes tits up. Another thing to think about is the VAT on the monthly payments if your not VAT registered it can work out dearer than finance on the over all figures.

Dave

[daysdeepclean]

Thank you very much for the input gentlemen, looks like I'll have to crack on using my portable until I can afford a TM set up, not too sure about a loan from the bank

It's better to just own something outright, so I'd better start stuffing my cash under the matress!

[mark shannon]

100% tax deductible in first year the reason I decided to go the bank loan route on TM, being vat registered another big advantage on big purchases.

Mark

[Mike Osbourne]

Mark,

Has the HM TM prices gone up since you got yours? What with exchange rates etc.

On the other hand there seem to be some 2nd hand TM on the market that are going begging and hardly run in yet.

Are these not immense value at the moment.

[mark shannon]

Yes Mike gone up allot got in just in time, Bargains out there Mike.

[Mike Osbourne]

Your timing is impeccable Mark.

[Doctor Carpet (Ret'd)]

The debate assumes that you will get an unsecured loan. If you can only obtain a secured loan then that should make leasing a far more attractive proposition as the lender has security in the asset being bought.

Leasing can also be more tailored to cash flow with for example lower monthly repayments but with a balloon repayment at the end.

End of the day there is no right or wrong answer and the best option will take into account all these answers and your own circumstances and preferences and attitude to different types of risk.

[mark shannon]

Your timing is impeccable Mark.

Mrs doesn't think so 

[Joe H]

Mark

You are in a good position for when things pick up. The Mrs might not appreciate that now, but she will.

[clinton]

Collin

Have you had a go with a t mount yet

There are some good used ones on the market as mike says at the mo

Its good to have a go at a few and see which one will suit your workload

[Neil Williams]

And to complicate the decision making it all depends on if you are (1)not vat registered (2) full vat registered (3) flat rate vat registered.

All things concidered on a Scorpian I have on order it was better for us to buy on a credit card (there's security in doing that) then pay it off quickish.

We're on the vat flat rate scheme.

[clinton]

Niel

Whats the vat flat rate scheme

Cheers

[Neil Williams]

Turnover between £66k and no more than £150k net (or close to that)
You charge out to customer at current rate presently 15% but you pay the vat man at 9.5% (for cleaning services)
But you can't claim back the everyday expenses of vat like on fuel.
There are other elements to it also but I can't list them all.

[clinton]

Niel

Cheers was not too sure ::)Your vat reg then :

Whens your new set up coming

Had a go with one monday and must say its a good portie

[daysdeepclean]

Clinton,

I haven't had the pleasure yet, I'm hoping to get a go at the NEC in March.

 

[clinton]

Colin

Good idea and even better if you can get someone who has one near you and have a go on site

[derek west]

colin
you live in cornwall, its a no brainer what van mount you get imo.
derek