We are pleased to offer a number of funding options to our customers.
1. Buy Outright
Many customers choose to purchase the boilers outright where capital availability allows. Whilst the RHI prevents the claim of Enhanced Capital Allowances in respect of this equipment, the equipment does qualify for other capital allowances meaning that any available Annual Investment Allowance can be utilised and any subsequent writing down allowance can be claimed. We advise you check with your accountants to ensure you comply with ever changing tax regulations. VAT is payable for the full purchase amount at whatever rate applies to the business.
Customers who purchase their installation will retain the full RHI due from the Government.
2. Hire Purchase
Most customers choose to purchase the equipment through a Hire Purchase agreement from a Leasing company of their choice. If the boiler is hire purchased the customer retains ownership of the asset and hence the same tax benefits apply as an outright purchase. From a cash flow perspective, this option usually requires a capital deposit to be funded by the customer and the VAT on the entire project also needs to be funded up front.
Customers who Hire Purchase their installation will retain the full RHI due from the Government.
3. Lease Purchase
Some customers choose to lease purchase the installation through a leasing company of their choice. Normally there is no deposit required, the costs are spread, usually over five years and the payments are tax deductible so the tax benefit is also spread over the term of the lease. However as there is no upfront capital cost it cannot be offset against your AIA. VAT is payable on the monthly lease payments rather than upfront.
Customers who lease their installation will retain any RHI due from the Government however as ownership of the asset does not transfer until the end of the lease there may be issues receiving payments for an asset as yet not owned. We advise you to check with your lease company prior to choosing this option.
4. Free Boiler
For customers currently spending over £20k pa on heating oil or LPG who do not wish to purchase or lease the equipment there is still an option to have a free installation and save on their fuel bills, however they will not receive the RHI payments as these will be retained by Mi-Generation who retain ownership of the equipment.