Contract Hire is frequently the first choice for business vehicle funding. It provides the use of a vehicle at a fixed monthly cost that usually includes full servicing and maintenance costs including tyres and road fund licence renewal. This makes budgeting extremely easy especially if you have more than 2 vehicles.

Contract Hire is available on both new and VAT qualifying used vehicles, and is an attractive option to the VAT registered business user, offering significant tax advantages that can assist your cash flow.

After paying an initial rental, (usually 3 or 6 months), and agreeing a contract period, (usually between 24 and 48 months), your monthly payments are calculated according to vehicle value, agreed annual mileage and your choice of service and maintenance options.

Benefits     » Fixed rate of interest.
    » VAT reclaimable (depending upon usage).
    » Inflation proof payment.
    » Available for both new and used vehicles.
    » Offset part of the rentals against tax.
    » Use without ownership.
    » Vehicles shown off balance sheet.
    » Improved cashflow.
    » No vehicle disposal risk.

Taxation, legislation and accounting practices are subject to change and current business allowances can be changed at any time. For specific guidance it may be advisable to consult your accountant or financial advisor.

The above points are guidelines, therefore should you require additional assistance or a bespoke quotation please do not hesitate to contact us.