Contract Hire is a vehicle funding method by which a business will pay fixed monthly rentals on a brand new vehicle, over a period of between 2-5 years.
This offers many accounting and operational advantages. Fixed monthly rentals enables your business to budget accurately and without having to worry about deprecation. You can also deduct the full cost of finance rentals from taxable profits if the vehicle emits 130g/km of CO2 or less, or 85% of the rental on vehicles with higher emissions.
Contract Hire is also tax-efficient as you can recover 50% of VAT on the finance rental if the vehicle is used both privately and for business use, or 100% of the VAT if the vehicle is used for business only. If you take out maintenance with us on the vehicle, you can also recover all of the VAT on this part of the rental.
Operationally, we'll take care of sourcing the vehicles for you and, once your contract hire term has ended, you can hand the car back to us and we'll handle the disposal/re-sale of the vehicle, leaving you to simply choose which new vehicle you want to upgrade your fleet with next.
To find out more about our Fleet Funding options call 01332 267 389 or email the team.
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