For customers with a tax year ending on 31st March, the time to review capital equipment expenditure for the current financial year is now. This will include most sole traders and individuals trading within a partnership. There is, however, a need to act fast. There are two generous capital allowance schemes available under a hire purchase agreement. In order to qualify, any equipment concerned must be on site and available for use within the financial year in which the allowance is claimed.

For those businesses in the final quarter of their financial year, the two allowances referred to above enable the full capital allowance of a newly acquired asset to be offset against tax in this financial year. The added benefit is that, under a hire purchase agreement, payment for the equipment concerned can be spread over a number of future years. The two schemes are:


Annual Investment Allowance


A capital allowance equating to 100% of the cost price of a qualifying asset can be claimed against tax in the year of acquisition. This allowance has a cap of £1,000,000 for the calendar year 2022. It is available on new and used equipment and can be claimed against both income and corporation tax. This means that all business trading styles can benefit from the scheme.




A capital allowance equating to 130% of the cost price of a qualifying asset can be claimed against tax in the year of acquisition. You read it correctly! This scheme allows a business to claim a tax allowance on a sum that is 30% more than the actual cost of the asset. By any standard, this is one of the most generous tax allowances ever introduced.


Whilst there is no cap on the amount of expenditure allowed under this scheme during 2022, the allowance can only be claimed against corporation tax. This means it is not available to sole-traders and partnerships. Unlike the annual investment allowance, super-deduction is available for new equipment only. It is also worth pointing out that it cannot be claimed in cases where assets are purchased for onward hire.


Cars cannot be included for either allowance, but commercial vehicles, plant and machinery all qualify, subject to the conditions described above.


Many businesses have a financial year ending March 2022, and this can act as a powerful and immediate incentive to bring forward capital expenditure to reduce any current tax liability. To benefit from these allowances before the end of their financial year, a business needs to ensure that any qualifying equipment, acquired by way of a hire purchase agreement, is ordered and delivered during the current quarter.


A hire purchase agreement allows businesses to acquire the equipment they need now and get the full benefits of the generous capital allowances currently available, without the need for a large cash outlay. In other words, businesses can get the tax allowances in their current financial year but spread the cost of purchase over a number of future years. A further point to note is that the interest element on a hire purchase agreement can also be offset against tax as a business expense. This means that for companies expecting to see an increase in corporation tax from 19% to 25% from April 2023, the real cost of any hire purchase agreement signed this year will reduce from that date.


In conclusion, and providing stock is available, there are many businesses that have a strong financial incentive to bring forward the acquisition of capital equipment. This means they will be able to retain cash for investment elsewhere. Capital allowances claimed now, on equipment subject to hire purchase agreements, provide the perfect solution.


BNP Paribas Leasing Solutions is not authorised to provide tax advice. You should consult an accountant in order to understand the tax consequences of any investment decision.

Andy MilsomAndy Milsom, Head of Partner Training & Development at BNP Paribas Leasing Solutions

Andy is an experienced sales and finance professional with over 25 years’ experience in sales aid leasing. Andy is widely recognised as an expert in business finance and has in recent years focused his attention on developing partner sales teams develop an understanding of how businesses secure project financing. His training programme – Finance Unlocked – is a highly rated customisable course and is offered at no cost to partners.

If you’re interested in helping your sales team overcome finance-related hurdles during the selling cycle, please get in touch with Andy on 07966 114 243 or email here.

enquiryWe are committed to your business growth.

Our competitive finance solutions can help you capitalise on new opportunities. Contact us today to discuss your needs with a member of our team.

BNP Paribas Leasing Solutions UK, the leasing and finance solutions specialist, has announced the appointment of Graham Drew, Bernard Saikalis and Matt Dredger as Business Development Managers within its ICT finance division.

BNP Paribas Leasing Solutions specialises in leasing finance for professional ICT equipment, offered through its partner network comprising of leading manufacturers, distributors and resellers.

In his role as Business Development Manager, Dredger brings with him almost three decades of experience in the leasing industry. Over his career, Dredger has worked for businesses including Forward Trust, Lombard, ECS and 3 Step IT. He joins BNP Paribas Leasing Solutions from his own successful company, Borroclub, an online peer-to-peer sharing platform, where he was Founder and Director.

Saikalis joins the team from Close Brothers Technology Services where he held the position of Relationship Director. He also previously held Area Finance Manager positions at De Lage London and Syscap Group, where he launched the Autodesk finance program in the UK, and the Infor program in France.

With a career in the asset finance industry spanning over two-decades, Drew joins the business from Value Add Finance, a business he established last year. Prior to this, Drew has held positions at businesses including Shawbrook Bank, Credit Suisse Securities and De Lage Landen where he was European Sales Director.

As Business Development Managers, Dredger, Saikalis and Drew will be responsible for new partner recruitment in the tech sector and enabling BNP Paribas’ extensive network to make leasing an integral part of the sales process.

Martin Ardern, ICT Sales Director of BNP Paribas Leasing Solutions UK, said:

Our ICT team is going through a period of rapid growth and it is my pleasure to be able to welcome Matt, Bernard and Graham on board.

Each of them brings decades of experience in the asset finance and leasing industry to the role and I believe they will be instrumental in helping us achieve our ambitious growth plans.

ICT finance is a solution that is empowering businesses across the country to stay ahead of the curve, maximise productivity and compete on a global scale.

enquiryWe are committed to your business growth.

Our competitive finance solutions can help you capitalise on new opportunities. Contact us today to discuss your needs with a member of our team.

BNP Paribas Leasing Solutions and Daisy Group, today announced the extension of their partnership of five years. The new partnership will see the French financial services organisation continue to offer tailored technology finance solutions to Daisy’s 600,000 customers.

Daisy is one of the UK’s leading providers of business communications and IT services, and the renewed partnership comes at a significant point in the history of the group. Over the course of the last five years, Daisy Group has grown dramatically, acquiring a number of businesses including Phoenix IT Group, Damovo UK Limited and Alternative Networks, making it one of the few businesses in its industry that can genuinely offer an end-to-end portfolio of IT, telephony and Cloud services.

By outsourcing its financial services to BNP Paribas Leasing Solutions, Daisy Group is able to help businesses of all sizes benefit from leading-edge IT and telephony solutions without having to deplete cash reserves or dilute bank credit lines. Additionally, with BNP Paribas’ market-leading proposition in the financing of software and services, customers are able to deploy an enterprise-wide system with the convenience of regular payments, much like a subscription contract.

Colin Bell, Director of Procurement at Daisy Group commented:

“At Daisy Group, we’re focused on helping businesses embrace and truly benefit from technological innovation. BNP Paribas Leasing Solutions is a long-term partner that has proven capability to support our strategic goals. By offering our customers greater access to finance, we enable them to invest in the technology that will help them reach their true potential. I am delighted to see our partnership continue to thrive.”

Martin Ardern, ICT Sales Director, BNP Paribas Leasing Solutions commented:

“We believe that all businesses should have access to the tools and resources that will enable them to remain competitive and offer first class service. We’ve worked with Daisy Group for a number of years now, and it’s fantastic to see how their IT and telecoms solutions can truly transform their clients’ businesses.”

Daisy Group will be among the first to benefit from BNP Paribas’ improved online portfolio management tool – Lease Offers – which offers visibility to client data across all stages of the sales pipeline. The service includes a quote tool for quick credit decisions. The company also recently introduced an e-signature solution based on Adobe Sign technology to digitise the lease setup process, and further enhance the customer experience.

Share post:

Media contact

Suhale Vorajee
Head of Marketing and Communications
BNP Paribas Leasing Solutions UK

T: 01179 100 895
E: click here

BNP Paribas Leasing Solutions UK Linkedin

By Jean-Michel Boyer, CEO, BNP Paribas Leasing Solutions UK

Leasing is an accepted method of procuring expensive assets in industrial environments – if you need a truck, a combine harvester, or a forklift, you can deploy one with a regular payment plan very simply. The benefits are obvious for customers: they can access the best equipment without committing to a considerable upfront cost – and without breaking the bank.

Leasing is less common in the telecommunications industry, but it will likely grow in stature. The leasing market for business equipment has grown by over 35% in one year, according to the Finance and Leasing Association – and is now valued at approximately £30 billion. It can be applied to telecommunications with relative ease: when different protocols and hardware and software platforms need to be unified, it represents an appealing, cost-effective option for businesses looking to bolster their infrastructure.

How VARs can use leasing

A value-added reseller (VAR) in the telecoms market is meant to understand a customer’s budgetary and operational requirements – and cater to them by devising solutions that align with their deployment plan.

When VARs can supply solutions on a cost per month basis, they are empowered to offer customers much more. Soft costs can be rolled into the contract, so if end-users are wary about implementation or ongoing maintenance, you can assuage their concerns more easily. If a business is rapidly growing, you can offer the flexibility and scalability they need to accommodate an ever-increasing number of users.  

The ‘as a service’ subscription-based model is common in the world of enterprise software: if a business needs access to the Adobe suite, or to Sage’s accounting tools, it will likely do so by paying a flat monthly fee. If resellers can confer similar benefits across product portfolios, they can more easily please their customers and develop long-term business relationships.

Businesses are backing away from large upfront payments and moving towards access, rather than ownership. VARs employing a leasing model can directly benefit from this in these three key ways.

Cost and affordability

Leasing makes the latest telecommunications technology available to any business by avoiding large, upfront payments that have historically been a deterrent to new investment.

When the fundamentals of the telecommunications system have been implemented additional solutions can be bolted on with relative ease. If CRM functions are needed, they can be supplied; if mobile connectivity and call centre integration are needed, they are available. VARs always benefit when they offer more affordable solutions, as it makes customers more likely to sign up.  

Upgrades and improvements

Technology is iterative, and a solution that works for a business one year may be out of date the next. Leasing can help your customers maintain a competitive edge and stay scrupulously current.

Upgrading their solution effectively becomes a matter of refreshing their plan when it suits them. This prevents the business from being stuck with obsolete or inadequate telecommunications equipment that doesn’t suit the company’s needs – and prevents competitors from stealing a lead on the business.

VARs who employ leasing will be able to offer long-term solutions to long-term customers.

Increasing technology investment

The telecommunications market is advancing rapidly: telephony runs through desktop and mobile computers, and CRM systems make sure the maximum value is extracted from each customer interaction. But expertise, training, and consultancy are needed to make the most of this technology.

A recent report from IDC highlighted this, finding that 51% of companies expect a solution provider to offer a technology roadmap. End-users don’t want telecoms VARs to supply one-off products: they want them to meaningfully improve their business, and they want a degree of flexibility about it – IDC’s report also suggests that 51% are looking for convenient consumption models such as pay-per-use, and that 31% are actively considering new leasing and financing options.

Providing leasing options broadens the scope of what a reseller can do. It makes them more appealing to customers and incentivises those customers to buy. Telecommunications VARs would be well-advised to explore it.

We are committed to your business growth. Our competitive finance solutions can help you capitalise on new opportunities. Contact us today to discuss your needs with a member of our team.

Share post:

Featured in ...

Media contact

Suhale Vorajee
Head of Marketing and Communications
BNP Paribas Leasing Solutions UK

T: 01179 100 895
E: click here

Beyond Finance - Access over ownership - leasing in the telecommunications industry
BNP Paribas Leasing Solutions UK Linkedin

By Jean-Michel Boyer, CEO, BNP Paribas Leasing Solutions UK

Leasing assets, rather than owning them, is transforming how people engage with the technology they need. Nowadays, nearly all traditional assets such as trucks, and industrial or commercial equipment like forklifts or harvesters, are acquired on a lease.

The telecoms market is comparatively less mature, yet business comms is a complex area where different standards, protocols, hardware and software platforms need to be seamlessly integrated. As a result, leasing can provide an efficient and affordable solution that also helps businesses to expand their telephony infrastructure with relative ease, on a piecemeal basis.

The shift to access over ownership

The role of a telecoms value added reseller (VAR) is to understand the customers’ full deployment plan and devise the best solution based on budget and need. With leasing, VARs can offer that solution on a cost per month basis which includes all aspects from software and hardware to soft costs such as installation, consultancy, configuration, security, training and maintenance. The customer can get the solution they need and build on it as their business needs grow and change.

Most businesses are now used to the ‘as a service’ model of accessing technology – paying for access rather than ownership – so selling small or complex solutions on this basis is a good way forward for resellers looking to develop long-term business relationships and increase their customer base.

Rather than having to make a large upfront payment for technologies which could soon become obsolete, businesses are now more accustomed to accessing what they need, when they need it.

Affordable access to technology

Essentially, leasing enables access to top of the range telecoms technology at an affordable fixed rate. Once a basic telecoms system has been installed, other areas can be added according to the customer’s needs and budget. This could include call centre integration, customer relationship management (CRM) functions and mobile connectivity.

Businesses can spread the cost of their new solution and acquire the assets they need without jeopardising their cashflow. Each deal can be designed and enhanced to suit each business’ specific needs, with flexible payment terms. Any change in requirements can be easily accommodated; for example, should a business experience a sudden growth spurt, the business can scale accordingly and add the necessary extra assets to the lease.

Out with the old, in with the new

Technology is constantly changing and staying relevant and up-to-date is critical to maintain a competitive edge within any industry.

A lease makes it easy for a company to upgrade their telecoms solution and stay abreast of market developments, rather than being stuck with obsolete technology. A regular refresh plan allows the customer to swap out the old technology for the new, without costing them a fortune.

Leasing drives technology investment… and sales

When it comes to software and product development, the telecoms sector is advancing rapidly. Much of today’s telephony runs through desktop and mobile computers, as well as CRM systems, which demands a degree of expertise to ensure a positive ROI. As a result, more businesses now look to resellers to offer a solution that encompasses technology, consultancy, deployment and training.

A recent study from IDC found that 51 percent of companies expect their solution provider to offer a technology roadmap. This emphasises the changing nature of the telecoms VAR, from simply supplying a one-off product to one that partners with the customer for the long-term.

Businesses are increasingly looking for convenience and flexibility in how IT is deployed and consumed within their businesses. The same IDC study shows that 31 percent of businesses are looking for the availability of leasing and financing options from their technology provider, whilst 51 percent also look for flexible consumption models e.g. pay-per-use.

Leasing telecoms equipment provides a competitive advantage that allows a business to spread their costs and acquire the assets, and support, they need to succeed. In a world that leases everything from phones to cars, leasing telecoms equipment is a natural next step.

Beyond Finance - A guide to leasing in the telecoms industry
BNP Paribas Leasing Solutions UK Linkedin

2016 was an eventful year for the telecommunications industry. UK residential and small business fixed broadband traffic grew by 40% in 2016, and mobile data traffic rose by 64%. As we enter the second quarter of 2017, here are four telecom trends that are shaping up to be big:

  1. Consolidation of IT and telco

Vendors should keep an eye on the relationship between IT and telecommunications, which – given the rapid growth of cloud services and system integration – may soon be one and the same. International software giants have already begun to expand into telecommunications: Microsoft has done so with Skype for Business, and HP Enterprise has also made several forays into telecoms.

In 2017 onwards, the telecoms sector should expect this trend to continue – and for telecoms vendors to do the same, expanding and acquiring IT companies that can add value to their portfolios. An integrated ICT market will force vendors to continue to look beyond their comfort zone of selling for telecoms operators.

  1. Wider fibre and 5G rollouts

One of the more predictable telecoms trends will be the introduction of higher-speed internet. The Chancellor of the Exchequer has committed to invest more than £1bn into fibre and 5G networks over the next four years, with the ambitious aim of rolling out 5G networks across the country by 2020.

Indeed, 5G will be the focal point for much of the telecoms industry’s interest – and this will manifest in further research and development, both within the industry and outside of it. Energy, transportation, and many other markets are also acutely aware of the promise that 5G networks hold for their businesses, and – in their relentless quest to deliver process and service improvements – will actively invest in developing this technology further.

  1. The Internet of Things becomes profitable

While the benefits of faster internet are obvious, any investment in 5G will also speed up the advent of the IoT – and we should expect to see additional developments in this area over the course of 2017.

According to Gartner, we are likely to see some 21 billion devices connected to the IoT by 2020. This could potentially translate into significant gains for telecoms vendors – if they expand beyond their core products and focus on cloud technology, security, and the myriad other IT technologies that will only grow in importance over the next year.

  1. Increased emphasis on security

Finally, it’s wise to expect further interest and investment in security – which has always been an important consideration. In the wake of several high-profile data breaches – with the 2015 Talk Talk hack perhaps being the ultimate example – it’s become more important than ever for telco customers to shore up their systems.

Last year, BT hired more than a thousand additional cyber security staff members, and Vodafone set up its own security department, which now sells technology developed in collaboration with BAE systems. Telecoms vendors should seize the opportunity: with communications and IT becoming ever more integrated they’ll be ideally positioned to offer superior security services.

These are only a few of the telecoms trends that are high on the agenda this year, but they’re suggestive of the industry’s future – one where it becomes faster, smarter, and ever closer to IT. The best vendors will capitalise on these trends – before the competition does.

Help your customers remain competitive by taking advantage of these new trends. Get in touch with one of our telecoms experts to see how we can support your sales strategy.