Tax Advantages Of Leasing A Van

A small van lease does not cost you a lot of money. You can easily arrange the money for the lease as the cost of leasing is spread through the entire term of the contract. All that you need to do is to give a deposit and this is again not a very big amount.

The leasing company takes care of the maintenance and thus lets you save on a lot of costs. There are some lease agreements that also let you buy the vehicle if you wish to.

Tax benefits when you lease the van

The benefit of leasing the van lets you enjoy 100% VAT back in case your businessisVAT registered. This is if the van that you buy will be used only for business purposes.

You can also claim the tax benefit of the rental that you pay towards the van. This can be claimed when you file the tax return and turn helps you to save on tax. The rental payment is thus an expense that is tax deductible.

Leasing a van for your business

When you plan to buy a van for your business needs, then this brings in a number of benefits to you. You will, however, have to buy it straightway or you could fund the purchase by taking a loan.

Leaving, however, is when you can still use the van without technically owning it. You will just be renting the services of the van and this is against a fee that you give to the owner of the van.

There are many benefits to both ways of operating a van. Knowing the pros and cons of each method lets you take a more informed decision. Neither option is better than the other. All that matters is what fits your individual needs.