Investing in IT offers a big payback

The vast array of IT systems, software and hardware on the market, which can

conjure up massive savings in terms of productivity and time, like every other

business or professional tool comes at a price. Options which can assist IT

managers or users get the best value for their investment need to be assessed.

Prolease says that there is a range of finance schemes available to help investment

in IT, “but getting the right finance for your company can be a tricky

business. For example, have you considered leasing for both your computers and

software? This affordable solution will not only keep your business at the cutting

edge of technology – it could also help you benefit from better cashflow management,

leave you free to use your capital elsewhere and give you the opportunity to

gain significant tax advantages.”

Prolease Director, Stuart Austin, offers advice for companies looking to fund

their next IT purchase: “Firstly, it’s important to identify the costs

of ongoing support and maintenance, which, whenever possible, should be paid

separately to the software and hardware content of the deal. The contract between

the supplier and the customer needs to detail the precise nature of the support

they are entitled to, as well as when it is available and at what cost. Agreeing

all these points in advance will prevent any confusion in the future.

“Secondly, the capital sum can either be purchased, leased or financed

by loan. Both the outright purchase and loan options give the customer the opportunity

to claim 100% first year allowances for IT investment, providing they qualify

as a ‘Small to Medium-Sized Enterprise’ (SME). The interest element of loan

payments can also be offset against the taxable profits of the business.”

Mr Austin added: “The opportunity to lease computer software is still

relatively new and is not readily available from all the lending institutions.

However, when it is offered the lease payments can be offset against tax- as

for any other leased asset.”