Essentially an Operating Lease, but Contract Hire provides a new motorcar together with optional full maintenance, emergency cover, road fund licence, vehicle collection and disposal. So, your only additional costs will be insurance, petol and oil, which means at the outset of the agreement you'll know exactly how much your vehicle will cost to run each month.
Futhermore, inexpected bills will be a thing of the past and less time will be spent on administration, because you will receive just one invoice a month covering all aspects of the agreement.

A low initial outlay, usually only 3 months rentals in advance, is required.
Monthly rentals are fixed and subject to VAT at the prevailing rate.

Contract hire is extremely tax efficient because the rentals can be offset against taxable profits. Thus improving your cash flow and tax position. Similar to an Operating Lease, the vehicle will not be diplayed on your balance sheet.

As with leasing, if you are VAT registered you may reclaim 50% of the VTA on the rentals, or 100% of the finance element of the rental if the car is used exclusively for business purposes. The maintenance element of the rental is fully VAT recoverable irrespective of the use of the vehicle.

Please note that Leasing and Contract Hire offers significant advantages over traditional methods of funding, depending on tax status and the timings of capital expenditure.

We recommend you consult your own accountant or tax manager to establish the effect of leasing and VAT on your business.

Fixed monthly rentals include all maintenance costs.

Tax efficient with rentals offset against taxable profits.

FIXED COST PACKAGE ALLOWS FOR ACCURATE BUDGETING AND LESS ADMINISTRATION.