Asset Finance for Plant, Machinery & Capital Equipment

CHANGES TO CAPITAL ALLOWANCES – act before 1st April 2012

The Annual Investment Allowance enables companies or individuals to offset new expenditure on qualifying plant and machinery assets against profits to reduce the amounts of Corporation Tax or Income Tax payable. Since it came into effect on 1 April 2008, the amount of the Annual Investment Allowance has been £100,000 per annum, however with effect from the 1 April 2012 for Corporation Tax and 6 April 2012 for Income Tax, the amount of the Annual Investment Allowance is being reduced to £25,000.

If businesses are looking to invest in qualifying plant and machinery they should seek advice from their accountants prior to doing so to ensure that they are eligible and meet the qualification criteria. If this is the case, then NGI Finance can help them to find the right funding option for the purchase of the equipment and get it in place well before the deadline.

Contact us now to find out more on 0870 850 4484

Asset Finance via Hire Purchase

For certain types of asset financing requirements Hire Purchase offers a straightforward way to spread the costs. With this type of asset finance plan you pay a fixed rate of interest and benefit from agreed monthly payments, making budgeting simple and easy.

You choose the amount of deposit you wish to pay, typically between 10%-50% of the car’s price. The remainder of the balance, together with the interest, is repaid over an agreed period (12-60 months).

If you are looking to finance assets like capital equipment or plant and machinery then the benefits of Hire Purchase would be:

• Low deposit - doesn’t tie up personal or business assets
• Fixed monthly payment – makes budgeting simple
• Flexibility - doesn't compromise your other lines of credit
• Assets - you gain ownership of the car
• Tax benefits - tax allowances for business users
• VAT free - no VAT on payments

Contact us to discuss your requirements.

Funding Assets via Finance Lease

If your business needs to acquire new capital equipment or new machinery then using a Finance Lease for asset finance is a popular strategy.  

On an asset Finance Lease agreement, you can choose to pay either the entire cost of the asset, including interest charges, over an agreed lease period or opt to pay lower monthly rentals with a final payment based on the anticipated resale value of the asset. 

Finance Lease is not available to Private Individuals but can be the preferred option for Partnerships, Limited Companies, Self Employed & Sole Traders due to the significant tax advantages. What Are the Benefits?

Key features and benefits of finance leases for plant, machinery and other capital equipment assets include:

• Fixed payments for the whole agreement
• Low deposit - for just a small outlay, you can use the assets immediately
• 100% tax deductible - get back between 18% & 40% of your total payments back (including your deposit)
• Flexible repayment structure tailored to match your cash flow
• Fixed or variable interest options - you decide which suits you best
• Tax advantages - VAT is payable on the rentals, not the purchase price, while payments can normally be offset against taxable profit (special rules apply to cars)
• No penalty charges for additional mileage or damage at the end of the agreement
• Although the customer does not own the asset, they receive 98% of the sale proceeds.

To find out more, contact us.