Tax Benefits of Website Leasing...

One of the major benefits of deciding to lease a website is the effect this has on the tax situation of a company. Leasing can be classified as a business expense and the tax can be claimed back in a similar way to VAT on other business expenses. Many of our clients make our services even better value for money by writing this tax off their annual net profit.

Below is advice from Business Direct, a government business consultancy service:

“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 capital allowances. 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 see the following web links, or alternatively contact us to discuss it.

• Business Link
• Informative PDF information sheet
• Revenue & Customs Information