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'I have known Simon Freeman and have been using Snowbird Finance for many years. They have been key to the fulfilment of our business plans, particularly during our relocation and expansion in 2012 and 2013'
Helen Harrison, Granta Dental
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Lease purchase (also known as Hire Purchase) offers taxation and ownership benefits for medical professionals purchasing new practice equipment, allowing you to own the equipment outright once all the payments have been made (subject to a nominal title transfer fee). This also means that the equipment will show on the balance sheet as a fixed asset.
This is a popular option for managing cashflow, particularly for newly established or expanding dental practices, as there is no significant outlay, leaving you to save working capital for other projects.
Lease purchase schemes are usually for periods of up to 5 years with fixed payments made monthly in advance, so you know exactly how much you need to pay each month, regardless of the prevailing base rate.
The main tax benefit of this type of finance solution is that your purchase would qualify for the Annual Investment Allowance (AIA), which offers tax relief at 100% on qualifying expenditure in the first year of purchase. The maximum you can deduct from your taxable profits was increased to £500,000 in the 2014 Budget, until 31 December 2015. *
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*You have sole responsibility for your own tax and legal affairs. We recommend that you obtain your own independent tax and legal advice tailored to your individual circumstances. Snowbird Finance does not provide tax or legal advice.