CONTRACT HIRE - LONG TERM RENTAL PLANS MEAN NO RISK...

Similar to a long term daily rental plan, you enjoy the vehicle usage whilst the Contract Hire company owns the vehicle and bears the risk of depreciation.

Initial rental is paid on delivery and monthly rentals are payable over an agreed period. When the period finishes, you simply hand the vehicle back.

As you do not own the vehicle you cannot depreciate the value. Instead, you are able to offset the lease rentals against your taxable profits. Please refer to the VAT and Tax Comparison later in this guide.

Rentals do not show on your business balance sheet, neither as an asset or a liability. You can also add maintenance options for a complete motoring package with no hidden charges.

Ideal for VAT registered Businesses Finance is calculated on the VAT exclusive price and then VAT is added to your monthly rentals. 100% of the VAT on the rentals are reclaimable for commercials, whilst generally 50% is reclaimable on cars.