Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts range from 12 to 60 months and are tailored to the businesses requirements.
The Contract Hire Company reclaims the VAT on the original purchase, which reduces your monthly rentals (which are + VAT). Contract Hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use, no exempt turnover and not being on the Flat Rate VAT Scheme).
On contracts with maintenance the VAT on the service element is 100% recoverable. One of the major benefits is that there are no disposal worries as the future value is underwritten by the leasing company. Another benefit of Contract Hire is that it is generally 'off balance sheet funding' (subject to legislation change) which means it can improve your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.
Email : email@example.com
Telephone : 0117 4287721
Company Address :
Van Sales UK
Unit 10 Garonor Way
Royal Portbury Dock
Van Sales UK is a trading style of Vanaways UK limited who are a credit broker and not a lender who is authorised and regulated by the Financial Conduct Authority consumer credit licence number 741996 as an appointed representative of Vehicle Holdings Limited (FRN 748903).
Vanaways UK Ltd is a company registered in England and Wales, Company number: 09467651/ VAT registration number: 232 1835 34 Registered offices: Unit 10 Garonor Way, Royal Portbury Dock, Bristol, BS20 7XE
Copyright © 2021 Van Sales UK, All rights reserved.
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