The numbers behind the decision.
Four free tools to model the real cost of asset finance — monthly payment, HP vs lease, VAT cash-flow, and the tax saved through full expensing.
What will it actually cost per month?
No personal info, no credit check. Move the values to see indicative monthly cost.
Same asset, two structures, side by side.
HP at 8.4% APR with 10% deposit. Lease at 7.4% APR with 10% residual at end of term. Both indicative.
Hire Purchase
£1,474/mo
- Total over term: £96,423
- You own the asset at end of term
- Qualifies for full expensing (100% year-1)
Finance Lease
£1,439/mo
- Total over term: £86,359
- Asset returned, sold or re-leased at end
- Rentals deductible against P&L; VAT on rentals
Spread the VAT, save the working capital.
Standard 20% UK VAT. Finance lease typically spreads VAT across rentals; HP normally settles VAT in month one.
VAT upfront (cash purchase / HP)
£12,000
Reclaimable on the next VAT return — but tied up for 1–3 months in the meantime.
VAT per month (lease)
£200
Reclaimed against the same return cycle the rental falls in. Working capital stays in the business.
Estimate the year-one tax saving.
Hire purchase qualifies for full expensing on qualifying plant & machinery. Confirm with your accountant — HMRC CA23165.
Estimated year-one tax saving
£30,000
100% of the asset cost is written off against profit in the year of acquisition, reducing your corporation tax bill by the rate shown.
Got the number you need?
Indicative figures only. For a real, FCA-compliant offer, request a soft-search quote.