Business Contract Hire with Maintenance
This is a simple Operating Lease that includes full maintenance, servicing and road fund licence. It provides a complete fixed cost motoring package, leaving you free to concentrate on running your business.
One point to consider is that Contract Hire is what is says i.e. a Contract. Early settlement is not an option without paying a minimum of 50% of any outstanding rentals.
Cash Flow Benefits
With a low initial outlay, normally expressed as monthly rentals in advance, followed by fixed monthly payments, you know exactly what your monthly motoring costs will be. Presently Contract Hire may also be classified as "off balance sheet" which may improve the financial ratios in your accounts.
Tax Implications
As it is an Operating Lease your finance rentals can be offset against taxable profits. If you are VAT registered, you can reclaim 50% of the VAT on the finance element of the rentals if the vehicle is used privately, or 100% if it is used exclusively for business or is a commercial vehicle. What's more, all the VAT on the maintenance element of the rental can be recovered, irrespective of vehicle use.
Who Owns The Vehicle at the End of the Agreement?
The Contract Hire Company owns the vehicle, at the end of the agreement you simply hand it back and arrange for a brand new vehicle to replace your current vehicle. We will arrange for vehicle collection from you and its subsequent disposal.
Busines Contract Hire without Maintenance
This is an Operating Lease without maintenance or servicing. It is a simple and straightforward facility that can offer some businesses an efficient package that lets you retain control of your own vehicle servicing and maintenance.
Cash Flow Benefits
A vehicle on an Operating Lease can be classified as "off balance sheet" for accounting purposes, therefore offering advantages to your business by improving its financial ratios.
Tax Implications
As it is an Operating Lease your finance rentals can be offset against taxable profits. If you are VAT registered, you can reclaim 50% of the VAT on the finance element of the rentals if the vehicle is used privately, or 100% if it is used exclusively for business or is a commercial vehicle.
Who Owns the Vehicle at the End of the Agreement?
The Contract Hire Company owns the vehicle, after you have paid your regular fixed monthly rentals for the fixed period, you simply hand the vehicle back and arrange the supply and delivery of your new vehicle on a fresh contract.