Vector Lease

A lease contract is a simple means of renting goods and equipment. Payments made on a lease, including the VAT if the business is not VAT registered, are fully tax deductible as a business operating expense. This allows self employed individuals, partnerships and companies to claim all leasing payments as a taxable expense. Leasing is an efficient means of finance and enables full cost of the goods and the interest charges to be written off over the borrowing term.

Leasing remains one of the most popular ways to equalize tax relief making it ideal for funding equipment, cabinetry and some types of practice refurbishment. Lease contracts usually span a fixed term of 2-7 years. At the end of the term there are options to continue renting the equipment for a small annual fee. Alternatively the contract can be transferred or terminated. There are no upper limits on the amount borrowed.