How Flexi Rent works for you
The customer rents the asset for an agreed term and makes regular repayments that include proportions of capital, interest charges and VAT Residual Value not less than 25% of original cost excl. VAT.
- Income tax treatment
- The Lessee deducts the lease rentals
- VAT treatment
- The Lessor charges VAT on each rental amount.
- The Lessee can claim VAT input where the asset allows
- Accounting treatment
- The asset is recorded as an "off-balance sheet" item (subject to independent auditor approval)
- The outstanding debt is shown as a note on the Balance Sheet
- The Lessee deducts rentals as an operating expense