The start of 2019 brings with it a delayed Christmas present from the Chancellor – as of 1st January 2019 the Annual Investment Allowance has been temporarily increased. The Annual Investment Allowance allows businesses to invest in qualifying equipment* and benefit from the ability to write off 100% of that investment against their taxable profits in the year of the purchase, up to the annual limit, which has been increased from the normal £200,000 per year to £1,000,000 for the next 2 years.
The Annual Investment Allowance applies to equipment financed via Hire Purchase as well as those bought outright for cash, with the added benefit that the Interest Charge on Hire Purchase agreements is 100% tax deductible too.
If you’re thinking of purchasing additional equipment for your business making use of a Hire Purchase facility can help spread the cost, easing cash flow, whilst enabling you to benefit from generous tax allowances and deductions. And with the increased allowance there are now even more reasons not to purchase equipment out of cash – we’ve previously explored how a Hire Purchase facility can actually be cheaper than using your own money!
At Genesis Asset Finance Ltd we provide a range of finance options for businesses across England and Wales, including Hire Purchase, and pride ourselves on our approachable, friendly and supportive approach. Why not contact us today to see how we can help your business?