Contract Hire

Contract Hire is now very popular amongst UK fleet managers and small business. Contract Hire in the UK is responsible for over 35% of the UK’s Company Cars, this figure compares to just 5% of Company Cars acquired through contract hire in 1980.

It is possible to obtain a competitive quote for all manufacturers - BMW, Mercedes, Audi, Jaguar, Volkswagen, Porsche, Ford, Toyota, Land Rover, Peugeot, Lexus, Vauxhall, Citroen, Saab, Volvo, Chrysler, Mazda, Fiat, Renault, Nissan, and many more.

Businesses prefer Contract Hire through the wide ranging benefits linked with this method of finance:

Various VAT benefits and savings
Free up capital to use elsewhere in the business
Off balance sheet funding
Fixed monthly cost
Reducing administrative hassles
Reducing your Financial Risks

Disadvantages
Contract hire is a fixed term contract, it is designed to run for a specific period of time and can therefore carry some penalty if terminated early. You need to check whether it is possible to terminate your contract hire contract early. It may be impossible to do so or at best under heavy penalty.

No equity on the vehicle at the end of the contract hire
VAT on rentals only 50% of which is reclaimable
Vehicles do not appear on the balance sheet.

Contract Hire Car - Options
A wide choice of contract hire options are widely available, helping you to find the most appropriate contract hire UK product for your company.

The contract hire period is usually set between 1-4 years
All makes of new & Quality used and pre-registered vehicles/cars/vans
Contract provided with or without maintenance
The contract is for a set mileage normally for a maximum mileage of 100, 000 petrol engines & 120,000 diesel engines
Replacement vehicle options.

In the Budget on the 21st March 2000, the Labour Government announced a new regime affecting the taxation of company cars with effect from 6 April 2002. The previous regime that encouraged company car drivers to drive more miles than necessary is replaced by a system that encourages the use of more fuel efficient vehicles.

List price still to be used as the basis of the taxable benefit calculation
Business mileage discounts to be replaced by a sliding scale based on CO2 emissions
Minimum and maximum benefit charges of 15% and 35% respectively to remain
Starting level of CO2 emissions attracting the minimum 15% charge to be 165g/km (reducing to 145g/km in 2004/05)
An increase of 1% for each 5 g/km of CO2 emissions over the minimum
Diesels to attract a 3% supplement due to the emission of other poisons
A 40% tax increase for the provision of private personal fuel

HOME Business Business Business Finance Business Loan Business Insurance Insurance Insurance Car Insurance Finance Finance Personal Finance Home Finance Car Finance Loan Loan Personal Loan Officefile.co.uk About Us Contact Us Financial Resources Site Map 1 Site Map 2 Site Map 3 Site Map 4	Contract Hire Contract Hire is now very popular amongst UK fleet managers and small business. Contract Hire in the UK is responsible for over 35% of the UK’s Company Cars, this figure compares to just 5% of Company Cars acquired through contract hire in 1980. It is possible to obtain a competitive quote for all manufacturers - BMW, Mercedes, Audi, Jaguar, Volkswagen, Porsche, Ford, Toyota, Land Rover, Peugeot, Lexus, Vauxhall, Citroen, Saab, Volvo, Chrysler, Mazda, Fiat, Renault, Nissan, and many more. Businesses prefer Contract Hire through the wide ranging benefits linked with this method of finance: Various VAT benefits and savings Free up capital to use elsewhere in the business Off balance sheet funding Fixed monthly cost Reducing administrative hassles Reducing your Financial Risks Disadvantages Contract hire is a fixed term contract, it is designed to run for a specific period of time and can therefore carry some penalty if terminated early. You need to check whether it is possible to terminate your contract hire contract early. It may be impossible to do so or at best under heavy penalty. No equity on the vehicle at the end of the contract hire VAT on rentals only 50% of which is reclaimable Vehicles do not appear on the balance sheet. Contract Hire Car - Options A wide choice of contract hire options are widely available, helping you to find the most appropriate contract hire UK product for your company. The contract hire period is usually set between 1-4 years All makes of new & Quality used and pre-registered vehicles/cars/vans Contract provided with or without maintenance The contract is for a set mileage normally for a maximum mileage of 100, 000 petrol engines & 120,000 diesel engines Replacement vehicle options. In the Budget on the 21st March 2000, the Labour Government announced a new regime affecting the taxation of company cars with effect from 6 April 2002. The previous regime that encouraged company car drivers to drive more miles than necessary is replaced by a system that encourages the use of more fuel efficient vehicles. List price still to be used as the basis of the taxable benefit calculation Business mileage discounts to be replaced by a sliding scale based on CO2 emissions Minimum and maximum benefit charges of 15% and 35% respectively to remain Starting level of CO2 emissions attracting the minimum 15% charge to be 165g/km (reducing to 145g/km in 2004/05) An increase of 1% for each 5 g/km of CO2 emissions over the minimum Diesels to attract a 3% supplement due to the emission of other poisons A 40% tax increase for the provision of private personal fuel
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