An operating lease is the minimum commitment, low payment option. When you sign an operating lease, you only pay for the use of the machine which lowers the monthly payments. Initially, you pay an upfront rental fee, and your rental payments include VAT. At the end of the lease, you simply give the machine back, subject to return conditions. While you can’t claim capital allowances, you can offset the rental payments against taxable profits as a business expense.
Contract hire simply adds the benefit of a comprehensive maintenance package. You can offset the rental fees against taxable profits, since they are a business expense.
Ripon Farm Services help you grow your business with an operating lease offering low monthly payments and minimum commitment or contract hire option for the added peace of mind of a maintenance package.