Understanding the complexities of leasing agreements can be a taxing experience even for the most niblest of minds. Which options would be the best? Would you be wiser enter into a straight rental agreement? Hire purchase When you take out a hire purchase agreement, you will be paying a deposit equivalent to 3 months of the overall rental in advance plus VAT. The periods of payment can vary between 36 and 60 months at the limit. Your monthly payments will be exempt from VAT and your initial deposit charge can be reclaimed. One other point in its favour is the ability to offset any taxable profit - which is a good ...