Leasing vs Hire Purchase

thePhilster69

Hi

I am about to embark on my business full-time, and am considering upgrading the Mac I currently use (will be a graphic/web designer). Now, Macs are expensive, and for the config I'd want, it'd cost around £2,500, so I've been looking at leasing/hire purhcase options.

As far as I know, if you lease equipment for your business, this is 100% tax deductible, but is that the case for hire purchase too as the price to lease the Mac is marginally smaller than the price to buy it thru hire purchase over 3 years.

Any help gratefully received!

Phil

whatatwit

I am looking for similar information in relation to getting a van.
Don't know if this question will get more response if it was posed on the tax board.

martindow

I would write to the inland revenue asking the question. This is the sort of thing you want in black and white so that you know exactly where you would be as far as tax is concerned. It could cause big problems if you assume the wrong thing (or you could miss out on a legitimate tax break).