Contract Hire

Contract Hire is a funding method suitable for those companies and individuals registered for VAT – up to 100% of VAT can be reclaimed provided there is no element of personal use. If the vehicle is used personally then this figure drops to 50% and the vehicle is hired for an agreed period of time, usually between 12 and 60 months and a rental is paid based on a pre agreed mileage. Contract Hire can include full maintenance including all wearable items such as tyres and brakes etc. At the end of the contract the vehicle is simply returned to ourselves so alleviating any disposal hassles or depreciation risks. Also up to 100% of rentals can be offset against taxable profits

Key Benefits of Contract Hire

Road Fund Tax
Vehicle Excise Duty for the period of the contract is included in the contract and will be sent to you automaticly

Fixed Monthly Rentals
The agreed rental remain constant throughout the contract allowing easy budgeting

No Depreciation Risk
Contract Motoring own the vehicle, you have no worries about depreciation and re-sale value, subject to fair wear and tear provisions.

VAT Reclaimable
100% of the VAT is reclaimable on commercial vehicles or cars when used purely for business.
50% of the VAT is reclaimable on cars when used privately.
100% VAT reclaimable on the maintenance contract (LCV & Car, regardless of use).

Off Balance Sheet Funding
The agreement acts as purely a rental cost therefore it sits off balance sheet thereby avoiding depreciating assets adversely affecting your gearing.

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