Nimans tells resellers to use tax benefits to sell leasing deals

 Lease rentals can be offset against corporation tax according to distributor

Telecoms and data distribution specialist Nimans is urging its resellers to use the taxman as part of their sales pitch, claiming many firms don’t realise the tax benefits of leasing equipment.

According to Nimans, corporation tax is not a term most businesses look upon with “great pleasure”, but says they can offset lease rentals against corporation tax, which is charged at up to 21 per cent of profits.

The £80m-turnover firm – a provider of telephone systems, audio conferencing units and structured cabling solutions – believes resellers can use the tax system as a sales tool.

“You have a great product and a customer who needs that product to expand, but what happens if the customer is not willing to make a large capital investment?” said Nimans head of dealer sales Tom Maxwell (pictured).

“Businesses can use leasing to reduce their tax bill. HM Revenue and Customs allows them to offset the whole of the lease rentals against corporation tax, which makes the facility incredibly cost effective.”

Nimans acknowledges that many businesses would have to adapt their strategy to incorporate a “recurring revenue” stream, and is offering training courses on how to “cash-in” on leasing opportunities.

“There are still many who don’t understand the concept of selling on rental based on recurring revenues, which are generally far more palatable and attractive to customers than a cash price,” added Maxwell.