For all your Leasing requirements please call Andrew Whitehead on: 020 8309 7788
or Andy Donaldson on: 01322 222171
Low initial rentals
On a typical Contract Hire Agreement, the initial payment
is normally equal to just a few months rentals.
No capital Investment
Switching customer expenditure to revenue budget
means off balance sheet financing and no capital
investment.
Rentals allowable against tax
The rentals you pay are allowable against your profits
before tax for cars costing up to £12,000. For more
expensive cars this could be slightly reduced. This can
result in a significant tax benefit compared with the
writing-down allowance you could claim if you purchased
the same car. Note that the tax is not saved forever, but
is deferred. This creates additional funds, free of charge,
for you to use in your business. It is this tax deferral
aspect which has made Contract Hire so attractive to
numerous businesses. An agreement starting at the
beginning of your financial year will maximise the tax
allowances available to you.
All advantages of ownership
Contract Hire gives you all the advantages of ownership
and unrestricted use of the vehicle without the
administration costs and the risk of depreciation.
Budgeting transport costs
A Contract Hire Agreement enables you to forecast your
transport costs. The desired amount of control of further
costs can be determined by the services required.
Full maintenance available
A complete maintenance package designed to suit the
particular needs of your business.
No disposal problems
No worries as to disposal or value of the vehicle at the
end of your contract.
Improved cash flow
The availability of variable length contracts and the low
initial payment required enables an improved cash-flow
to be obtained.
Minimised administration
Contract Hire can reduce such routine administration
tasks such as invoice checking, operating cost records,
buying, selling and maintaining the fleet.
VAT recoverable
Rental payments are subject to VAT. Whilst this is no
longer fully recoverable on cars if there is any private
use, the fact that the rental companies can now reclaim
the input VAT on new (and other qualifying cars) means
that rentals are comparatively lower. The net cost to you,
the operator is still reduced.
If your business largely involves making VAT exempt
supplies, or if you are self-employed or in a partnership,
you should check this aspect with your accountant. We
offer alternative schemes if you are not in a position to
recover VAT.
Operating Lease
An Operating Lease is essentially a non-maintenance
contract hire agreement providing similar benefits to
those listed above.
Are you a Business user? WJ King now have new contract hire rates for our business users! Only available until the end of September, so hurry!
