Contract HireA popular choice for VAT registered businesses requiring minimum outlay and providing optimum user friendliness. The vehicle is hired for an agreed period of time and a fixed rental is paid based on the anticipated mileage (the higher the mileage, the higher the rental). Contracts can be hire only or include full maintenance to cover routine servicing and tyre replacement etc. At the end of the contract the vehicle is simply returned to the finance company. Up to 100% of rentals can be offset against taxable profits and, depending on the vehicle type and nature of its use, up to 100% of the VAT on the rentals can be reclaimed. Highlights: - 12- 60 month contracts
- Low initial rental (usually equivalent to three monthly rentals)
- Mileage restrictions apply
- Any vehicle - new or used (up to 12 months old)
- Vehicle does not show on Balance Sheet
- Road tax included for full contract
- Fixed costs
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