Lease, Hire Purchase or to Buy outright

Been thinking about getting 2 new vans, current ones are 5 years old now although both working Ok, now having to start carrying out repairs on them, which means off road and not earning. So what is the best way to purchase a company vehicle?

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The main benefit of buying the van either buy purchase or hire purchase is that the company could receive the full Annual Investment Allowance of 100% on the new vans.

If you purchase the vans through HP, the finance charge will be also allowable against Corporation Tax.

With a lease, all the rentals would be allowable for Corporation Tax.

You don't mention if you are VAT registered. If you're not VAT registered, then leasing effectively adds VAT to the finance element, so can make it more expensive. Obviously, if you are VAT registered then you can claim the Input VAT on the rentals.

However, I would advise that you calculate what is the best value for money for YOU, and make the tax considerations secondary.

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Leasing would be a great way to avoid repairs on vehicles with 40k+ miles on them.

I prefer to lease vehicles and equipment.

All tax deductible and you maintain your equipment in as new condition.

A business cannot afford break downs from old vehicles or equipment.