If you’re running a hauling business and need to replace equipment, you may need to come up with thousands of pounds that you do not have. Also, if your credit is not perfect, taking out a business loan may be difficult to do. Instead of fretting over where to get the money, consider hiring the tippers you need and take advantage of these benefits.
Probably the biggest benefit of hiring lorries on a monthly contract is being able to claim the payments as tax deductions. Since it is a business expense, you may be able to claim 100% of the payments on your end-of-year taxes. Also, if your company is VAT registered, you may be able to claim 100% of the VAT as well. You wouldn’t be able to claim those deductions if you were buying the vehicles.
No Service Payments
Depending on the agreement, the vehicles that you hire for your company will be well maintained at no expense to your business. Since they are rental vehicles, the rental agency you’re working with will need to keep them maintained so they can continue to hire them out. So, if one of the vehicles breaks down, they will either repair or replace it for you.
During the winter months or the rainy season, your business may slow down and you won’t need to have as many lorries in your fleet. When this happens, most companies that rent construction equipment will reduce the number of trucks you’re hiring until business picks back up again. This allows your business to save money and not pay for vehicles that are not running during certain times of the year.
Easy to Budget
When you hire a lorry in Northampton on a weekly or monthly contract, it is easy to add the payments to your budget. You will know exactly how much you’re paying and when the payments are due. It can help keep your costs manageable and rental payments are usually much lower than payments are when you’re purchasing a vehicle from a dealership.
Lower Up-Front Costs
Whether you’re buying or hiring vehicles for your company, you will have up-front payments that are required. However, instead of needing to put down thousands of pounds as you would when buying lorries, your business may only need to pay the monthly rental fee in advance and a nominal deposit when you’re hiring tippers for your company.
Whether you’re starting a business and you’re low on capital or you need to update your fleet of lorries, consider the benefits of hiring instead of buying them. Your accountant should be able to help you decide if a monthly rental contract is a more affordable solution for your company.