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HIRE PURCHASE
You pay the agreed deposit, V.A.T. on the full purchase price and then finance the balance over a suitable period with fixed monthly payments.
Client retains ownership of the asset once all payments have been made via an Option to Purchase fee of normally £50 - £75.
Fixed or variable repayments normally monthly or quarterly.
Period between one and seven years.
Interest allowable against taxable profits.
Client claims Writing Down Allowances.
Asset appears on the Balance Sheet.
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