2014 Changes To The Annual Investment Allowance For Capital Equipment Could Benefit Your Business

/0 Comments/in , , , , , , , , , /by

In recent times business owners have sometimes tended to put investment in plant and machinery on the back burner because of economic instability.

It is in response to this that the Chancellor announced in the March 2014 Budget that there would be a temporary increase in the AIA limit will from £250,000 to £500,000  per annum with effect from 1 April 2014 for companies and from 6 April 2014 for sole traders/partnerships.

 

Window of opportunity for businesses to acquire capital equipment

The objective behind this initiative is to enable more businesses to undertake capital investment with a significantly reduced level of financial exposure.

However, although no announcement has yet been made, it is expected that the AIA limit will revert to £25,000 per annum with effect from 1 January 2016. It may therefore be important that businesses planning to invest in the near future do so before 2016 whilst the higher temporary increase in the AIA limit is in place.

 

Benefit of AIA  for business

A key advantage of AIA is that it accelerates the timing of tax relief on qualifying capital expenditure. Depending on the timing of the investment, the temporary increase in AIA means that businesses may be able to bring forward the tax relief on more of their capital expenditure. However it is worth businesses considering advancing or deferring investments in order to maximise their AIA over the period it is available.

 

More about AIA

The AIA was first introduced in April 2008, providing 100% allowance on the first £50,000 investment in qualifying capital expenditure. The maximum allowance was doubled to £100,000 for qualifying expenditure incurred from 1 April 2010 (6 April 2010 for unincorporated businesses), and was reduced to £25,000 with effect from 1 April 2012 (06 April 2012 for unincorporated businesses).  In the Chancellor’s 5 December 2012 Autumn Statement the AIA limit was temporarily increased from £25,000 to £250,000 for a two-year period from 1 January 2013 to 31 December 2014, before being temporarily raised to £500,000 in the recent budget.

 

Qualifying expenditure covers most assets purchased for use by businesses

• Office furniture and equipment

• Vans, lorries and equipment

• Building fixtures e.g. shop fittings, kitchen or bathroom fittings

• Business machines e.g. printing press,lathes, tooling machines

• Tractors, combine harvesters and other agricultural machinery

• Gaming machines, amusement rides

• Computer hardware and qualifying software

• Computerised/computer aided machinery including robotic machines

• Wind turbines and fibre optic cabling

• Driving school cars (adapted with dual control mechanisms)

 

The following items of capital expenditure do not qualify.

• Land, buildings or cars

• Expenditure incurred in the accounting period when trade ceased permanently

• Existing plant and machinery

• Plant and machinery that was gifted

• Plant and machinery used by a person for leasing under a long funding lease and

subsequently brought into use by that person for the purpose of a qualifying activity

• Change in the nature/conduct of the trade carried out by a person other than the person incurring the capital expenditure.

 

Download the AIA changes 2014 Fact Sheet

Download the AIA 2104 Changes Fact Sheet for much more information about the AIA opportunity for business and answers to your AIA queries.

Alternatively call us now on Tel: 01494 611 456 to discuss AIA, your capital equipment requirements and leasing options.

 

Leasing Helps SMEs Access Latest Technology And Other Business Equipment

/0 Comments/in , , , , , /by

Asset-based finance is an ever more attractive way for SMEs to acquire the machinery and equipment they need to run their businesses and invest in up-to-date IT technology to keep their infrastructure working efficiently.  Leasing is also available to cover the cost of office refits, fit outs and refurbishments, which form an essential part of most companies’ business plans.

Leasing allows companies to:

  • Preserve their cash reserves and existing lines of credit
  • Align costs with income over time rather than making a large upfront payment
  • Avoid technology obsolescence and the problem of disposing of old equipment.

 

These leasing benefits are particularly important for SMEs and Start Up businesses too as they enables them to manage the acquisition of equipment and related services as a predictable monthly or quarterly expense rather than a capital cost, offering  clear advantages in terms and tax and budgeting. After all, no business pays three years’ salary for its staff in advance, so why pay for the equipment they use upfront rather than over its useful life.

Whether for new business start-up or an established SME trying to stay competitive, leasing can generally be arranged in a relatively short timescale subject to status, allowing businesses to acquire the equipment they need when they need it.

SMEs looking at their finance options can obtain an instant leasing quote online using the WestWon lease calculator to help with budget planning. You can also email us with any queries at [email protected] or call on Tel: 01494 611 456. We are here to help you grow your business.

WestWon also provides a series of Leasing Fact Sheets for businesses wishing to find out more about leasing for their particular sector – for example, public sector leasing, catering industry leasing and medical and scientific industry leasing as well as general topics such as ‘Leasing Questions Answered’. You can also download the free guide to leasing – Financing Your Business Plans.

New Asset Finance Business Grows By 9% To Almost £1.7 Billion In January 2014

/0 Comments/in , , , , , , , , , , , , /by

UK Finance & Leasing Association members report that new asset finance business grew by 9% to almost £1.7 billion in January 2014, compared with the same month last year.

Geraldine Kilkelly, head of research and chief economist at the FLA said that key asset sectors reported double digit growth – with commercial vehicle finance, business equipment finance and plant and machinery finance up by 25%, 21% and 13% respectively.

IT equipment finance reported modest new business growth of 3% compared with the same month in 2013.

Kilkelly added: “The positive start to 2014 follows exceptionally strong growth of more than a third in December 2013 and reflects growing confidence in the sector.

“The FLA’s Asset Finance Confidence Survey for Q1 2014 showed respondents expect asset finance new business to grow by up to 10% over the next 12 months.”

 

Jan 2014

% change on

Jan 13

3 mths to

Jan 14

% change on

prev yr

12 mths to

Jan 14

% change on

prev yr

Total FLA asset finance (£m)

1,694

+9

5,705

+14

22,535

+4

Total leasing and hire purchase excluding high value (£m)

1,672

+7

5,603

+13

21,843

+4

Data Extracts:
Plant and machinery finance (£m)

343

 +13

 1,069

+9

4,513

+5

Commercial vehicle finance (£m)

420

+25

1,504

+38

5,285

+11

IT equipment finance (£m)

68

+3

412

+13

1,544

+14

Business equipment finance (£m)

159

+21

493

+12

1,961

+3

Car finance (£m)

505

-8

1,599

+1

6,707

-1

Aircraft, ships and rolling stock finance (£m)

6

-62

115

+42

297

-40

 

For more information visit the fla.org.uk

For more information about leasing equipment, machinery, IT resources or office furniture and fit out leasing please call WestWon on Tel: 01494 611 456.

 

Could Equipment Leasing Cater For Your Business Needs?

/0 Comments/in , , , /by

Appliance and equipment leasing is providing sustenance for thousands of businesses in the hospitality and catering industry. From small start-up coffee shops to well-established restaurants and food manufacturers, more and more companies are discovering the ease and flexibility of leasing catering equipment.

If you need to urgently replace essential catering equipment such as an oven or fryer, leasing can offer a fast and efficient solution to keep your business going and avoid any loss of revenue. Arranging a lease is usually very straightforward. Once you have found the equipment you wish to lease, you will be able to obtain an instant quote and a decision in principle soon after.

Pay as you use with equipment leasing

Unlike buying, leasing means you can pay as you use. After an initial payment, you can start using the equipment straight away and spread the cost over its useful life, so you can be paying for the asset with the income it generates. Plus, you have the ability to simply upgrade or expand equipment as and when the need arises, so you can always have the latest oven or coffee machine.

The lease itself can be tailored to suit your business. Agreements can be over an agreed period, for example two years, and repayments can be made monthly, quarterly or annually, by direct debit or invoice, whichever is most convenient. Lease payments can even be tailored to match your seasonal cash flow. You can also source equipment from multiple suppliers and can even include maintenance agreements.

Leasing provides businesses with an alternative new credit line separate from banks, which enables banking and overdraft lines to be kept free for any future cash flow issues or unexpected problems. And lease payments can be set against profit, thereby potentially reducing tax bills.

What can my catering business lease?

From a single item to an entire restaurant and kitchen fit out can be included in one lease agreement. Types of equipment that can be leased include:

  • Cooking equipment (e.g. commercial ovens, grills and microwaves)
  • Refrigeration units
  • Coffee machines
  • Food preparation equipment
  • Cold rooms
  • EPOS and cash registers
  • Food display equipment
  • Dishwashers
  • Laundry equipment
  • Vending machines
  • Furniture and counters

For more information on leasing catering equipment, download the WestWon Fact sheet for the Catering Industry.

Why Not Ask Your Supplier About Lease Finance For New Equipment, Machinery, IT, Furniture, Fit Outs And Related Soft Costs And Services?

/0 Comments/in , , , , , , , , , , , /by

Leasing now helps to fund 27% of all fixed capital investments in the UK. So it’s hardly surprising that more and more resellers are offering their customers a lease v purchase option.

Even if your chosen supplier doesn’t already offer leasing for capital equipment, you can ask them to contact a leasing company such as WestWon. Or if you prefer contact us directly to discuss a highly competitive leasing deal.

Why Do Many Resellers Already Offer Customers A Leasing  Option?

Simply because it helps their customers and there is no reason not too from a supplier standpoint as they still get paid for their goods andor services upfront – but by the leasing company rather than the customer.

Leasing enables customers to:

  • Spread the cost over time in line with the expected ROI on their investment
  • More easily select the equipment that better meets their needs.
  • Upgrade more often in the future, avoiding technology obsolescence.

Download the FREE ESSENTIAL GUIDE TO LEASING for more information.

WestWon provides a range of support options for resellers who wish to offer their customers a finance option. And if you haven’t already chosen your supplier, we can also recommend suppliers that can meet both your product and finance needs.

Offering a great leasing deal has benefits for both suppliers and customers. For more information about the type of leasing deals you can consider (or offer, if you are a supplier) simply email [email protected] or Tel: 01494 611 456. We’d love to help.

 

 

GET IN TOUCH

Contact Us

[email protected]

01494 611 456

PORTAL ACCESS

CORPORATE INFORMATION