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.
Unit 8, The Oak Trees Business Park
Registered Office : Car Contracts Britain Ltd, Unit 8 The Oak Trees Business Park, Orbital Park, Ashford, Kent, TN24 0SY
Company Reg No : 05248662 | Data Protection No : Z8873084 | VAT No : 851 2965 51 |
Millhouse Leasing is a trading name of Car Contracts Britain Limited, who is authorised and regulated by the Financial Conduct Authority. We are a credit broker and not a lender. Registered No: 654951
* Please note: All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer. All offers are subject to change at any time and are subject to finance approval and vehicle availability. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could effect your credit rating and make it more difficult to obtain credit in the future. All prices correct at time of publication.
Copyright © 2017 Millhouse Leasing, All rights reserved.