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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.
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 commercial vehicle is simply returned to the finance company so alleviating any disposal hassles or depreciation risks.
Up to 100% of rentals can be offset against taxable profits.