Tax – it’s a fact of life for everyone and all businesses should look to be as tax efficient as possible. So you’ve been told that leasing a printer is more tax efficient than buying it outright – we summarise the main points around this:
If you purchase a printer outright then it is usually written down as a capital allowance. For most businesses in the UK, HMRC allow you to claim 40% of the overall purchase price in the first year and 25% over subsequent years. This may also be higher if it’s you are a startup.
If you lease a printer then the monthly costs are 100% tax deductible as the lease/finance company still owns the printer and is therefore counted as a service that you are buying in. It is also important to note that this is not tax avoidance in any form.