Contract Hire provides the Customer with a car over a predetermined period and mileage at a fixed monthly rental. Road Fund Licence and breakdown recovery are included and other ancillary products can be added such as Full Maintenance, Replacement vehicle , Accident Management and Fuel Cards
What Are the Benefits:
> Accurate Cash Flow forecasting from fixed payments > Does not increase company gearing > Customer avoids risk on disposal > Liability off balance sheet > Customer avoids sourcing vehicle > VAT on vehicle purchase redeemable - This benefit passes directly to the customer through cheaper rentals. > Customer reclaims VAT on finance element of rental - 50% of VAT reclaimable if private use of the vehicle. If no private use then 100% of VAT reclaimable. Customer reclaims 100% VAT on services element > Customer allowed depreciation instead of CA - Subject to £12,000 disallowance rule (half the excess rule) > Interest cost allowable as tax deduction - subject to restrictions
Summary:
Contract Hire allows you to pay a set monthly fee with no depreciation risk or disposal issues. A full maintenance contract will prevent any unexpected repair costs.
Fleet Solutions
Driver Area
