How much? Less than you might think…
Design and Fit-Out offers comprehensive cost control and tender management and understands that office relocation and office interior fit-out represents a substantial committment in terms of both capital and revenue.
Part of what we bring to the table is also the ability to recommend the most tax-efficient way of financing your office relocation project.
Whether this means purchasing, leasing or other funding options; our long industry experience means clients are often happily surprised by our costings, having budgeted significantly more.
A quick approximate way of calculating lease payments is to work on a rate of £23.00 per £1,000 per month i.e. a £50,000 fit-out would cost in the region of £1150.00 per month.
It can be cheaper than paying cash.
If you pay for the furniture and refurbishment of your building from your cashflow, only a limited percentage is allowable for tax purposes. Because of the ‘intangible’ elements, the Revenue only allows you to claim capital allowances against approximately 65% of the project. However, if you lease the works, the repayments are 100% allowable unlike any other form of finance such as a bank loan. This 100% allowance on payments makes leasing the most tax efficient method of refurbishing a building and can work out cheaper than paying cash.
Easier budgeting to suit your cashflow
By spreading the cost over 2,3,4 or 5 years you can budget for one easy fixed cost for the period and payments can be made monthly, quarterly or annually. Plus, you can include all the elements of an office refurbishment such as furniture, partitions, air conditioning, carpeting, cabling and other costs.
Flexibility to add to the lease as necessary
If your requirements change during the period of the lease you can add furniture or any other office equipment to the agreement at any time by making use of our Master Lease agreements.
Conserves capital and preserves existing borrowing power
Other lines of credit from your bank or other finance houses remain intact for other credit needs. In addition, leasing can ease the strain on your working capital and provide finance with no deposit therefore leaving you with more reserves to invest in profit making activities.
Payments come from a revenue budget not a capital budget
Make the most of your budget by spreading the cost over 3 or 5 years and acquire the solution that meets your needs fully, rather than that which your budget dictates.