Business Contract Hire

By paying a fixed monthly rental you have low budget vehicle funding with the option of full maintenance and servicing. At the end of the contract the vehicle is simply returned avoiding disposal problems.

An optional full maintenance contract may be taken out which covers all servicing replacement tyres, batteries and exhausts. Membership with a motoring organisation to include home start, relay and European cover may also be included.

The monthly rentals plus a disallowable portion of VAT can be offset fully against corporation tax for cars with a net cost of no greater that £12000.00. For vehicles over £12000.00 the majority of the rental can be offset in accordance with inland revenue sliding scale.

The unique benefit of this type of funding is that vehicles do not appear on the company balance sheet as an asset and consequently has the advantage of not adversely affecting the company gearing ratio.

Benefits:

• Low initial outlay.
• Use without ownership of the vehicle.
• Lower monthly vehicle payments than traditional business funding.
• No risks of depreciation or disposal.
• Vehicle disposal problems taken care of.
• No final balloon payment to budget for allowing consistent & accurate budgeting.
• The full vat is recoverable on maintenance payments.