Great Return on Investment
The UK's Outdoor Holiday Accommodation Sector is performing well with more Brits choosing to holiday in the UK than ever before. This trend sets to continue in 2019, with uncertainty surrounding Brexit. In fact Canopy & Stars estimates a 15% increase in glamping bookings for breaks in the United Kingdom after Britain leaves the EU.
Many Farmers that already own land are looking to diversify, seeing the opportunity to get a better return on their investment by setting up a Campsite. When high quality, self contained buildings are invested in - Glamping sites can charge rates similar to 'high end' hotel rates.
Let your Glamping Pod pay for itself!
If you are self funding your new campsite or farm diversification project, it would make good business sense to consider spreading the initial outlay cost by using business leasing finance
Camping Cabins and Academy Leasing can offer both lease rental and hire purchase with terms from 12 months to 5 years. The monthly payments are the same for each option, but the VAT and tax treatment, and what happens to the equipment at the end of the agreement differs.
What is the difference between Lease Rental and Hire Purchase?
VAT is payable on each rental
To keep the equipment ‐ Academy will give you the option at the end of the lease term to retain the equipment for one additional payment
Accounting ‐ every rental paid can be treated as a business expense for tax purposes
All of the VAT on the cost is payable up front with the initial payment
To keep the equipment ‐ an option to purchase fee will be collected with the last payment you make. This is usually in the region of £150.00
Accounting ‐ Capital allowance on the equipment cost (as if you had paid cash), and tax relief on the interest payable.
We would always recommend that you seek your accountant’s advice as to which method is best suited to your business.