Leasing equipment

Checklist for what to consider when leasing.

At Simpson Wreford LLP we can provide businesses in the Royal Arsenal area with advice and support on a wide range of business issues. This article includes information on leasing equipment.

Leasing equipment rather than buying it can often be better for your bottom line, but it is important to read the fine print and weigh up all the factors before signing anything.

Above all, shop around and compare deals.

Below is a checklist of the most important factors to consider.

	Tick
Is the initial term of the lease and the amount and timing of rental payments clear?
Do the terms of the lease provide an option for renewal and if so on what terms?
Are you allowed to sublease the equipment?
Who is responsible for maintaining the equipment? Will your maintenance costs be higher or lower than if you owned it?
Are you allowed to make any modifications to the equipment?
Who is responsible for ensuring the equipment conforms to any existing or future regulations it might be subject to?
What happens if the equipment is lost, stolen, damaged, or destroyed? Does the lease specify what liability if any you would incur?
Who is responsible for insuring the equipment? To whom would any claims be paid?
Can you change the lease if your circumstances change?
Do the terms of the lease include a right to purchase, and if so on what terms?
Does the lease allow for premature termination, and if so in what circumstances? What penalties, if any, does premature termination incur?
What costs will be incurred at the termination of the lease, and how much of this will you have to cover?

This list is by no means comprehensive. There are many other potential pitfalls with leases such as warranty issues, regulatory requirements, taxes, license fees, and public liability.

If you are in the Royal Arsenal area and are looking for support and help from experienced accountants and business advisers, contact Simpson Wreford LLP.

Latest News

21 Jul 2025

International companies 'underpaid £8.8 billion in tax'

HMRC estimates that US firms underpaid £8.8 billion in taxes in 2024.

18 Jul 2025

More small firms expect to shrink than grow

The proportion of small firms expecting to contract, sell or close outnumbered the percentage hoping to grow, the Federation of Small Businesses (FSB) has warned.

17 Jul 2025

Recruitment static as firms assess NICs impact

Recruitment at UK firms remained static in the second quarter of 2025 as businesses continued to assess the impact of the rise in employer National Insurance contributions (NICs), says the British Chambers of Commerce (BCC).

16 Jul 2025

Inflation rate jumps to 3.6%

Data published by the Office for National Statistics (ONS) has revealed that the UK inflation rate unexpectedly jumped to 3.6% in the year to June.

15 Jul 2025

UK trade stabilises after tariff hit

The UK's goods exports rose by 3.1% in volume in May, with a 4.2% increase to the EU, led by higher fuels, machinery, transport equipment and other manufactured goods, according to the latest data from the British Chambers of Commerce (BCC).

14 Jul 2025

HMRC warns of Winter Fuel Payment scams

HMRC has issued a warning to be on high alert for scams linked to Winter Fuel Payments after receiving 15,100 reports of bogus activity in June.

11 Jul 2025

UK economy shrank in May

The UK economy shrank in May, according to latest figures from the Office for National Statistics (ONS).

10 Jul 2025

Harsh personal guarantees will chill growth ambitions, warns FSB

Personal guarantees risk holding back the growth the economy needs, the Federation of Small Businesses (FSB) has warned.

Free Consultation

Get in touch with us today for a free consultation.

View Services Contact us

Accessibility links