Business Contract Hire Features And Benefits
BUSINESS CAR LEASING OVERVIEW
Highlighted below are some of the features and benefits of leasing cars or fleets of cars through your business.
BENEFITS - CONVENIENCE
- No expensive capital outlay - enabling you to maintain working capital for your business
- Set monthly budget - the costs are fixed for the duration of the lease, no variable interest rates so you know what it is going to cost month on month.
- Flexible repayment - Invoices can also be fixed dependent on your cash flow requirements for quarterly, pause periods and advance rentals.
- End of Life flexibility - If you want to extend the vehicle at the end of the contracted period this may be possible, subject to finance company approval.
BENEFITS - SERVICES
- A comprehensive maintenance, servicing and tyre package can be included in your agreement for a fixed monthly fee at point of order.
- In life services – Option to include provision for a number of additional in life services such as accident management, fuel management, driver training etc.
- Additional services available through our parent site LetsTalkFleet.
BENEFITS - VAT / TAX TREATMENT
- Off the balance sheet – you will not be required to account for any steep losses in depreciation or disposal which can negatively affect your Profit and Loss.
- Vat reclaim lease costs- If you are a VAT registered business and have some personal usage you will be able to claim back 50% of the VAT on the lease charge, if you have 100% business use all VAT can be reclaimed.
- VAT reclaim services costs – 100% of the VAT charged on any services such as maintenance, can be reclaimed.
- Offset against Profits - If you are paying corporation tax, dependent on the Co2 emissions you can offset the finance charges against the taxable profits. All in life services can also be offset.
Whilst this summary shows there are many benefits of business car leasing it is important for businesses to understand all of the consequences of business car lease versus personal lease include the tax and cash flow implications.
Contact us if you would like to discuss your requirements.