How relevant is Contract Hire it to my business?
As a business owner, business contract hire is always worth considering. Whether you require a number of vehicles to run your business on a day to day basis or just one or two which you also intend to use for personal use, it’s worth doing the calculations.
Firstly, you need to compare the cash flows for different ways of funding and select the one that has the lowest costs. Make sure that taxation is part of this analysis, observing the differences for limited companies, sole traders and partnerships. – The type of company you operate makes a significant difference.
Before taking out any contract, you need to be happy that the contract hire company you have chosen can meet the needs of your business and can really add value. Sum up extras such as value added services and maintenance packages. Check what is, and what is not included. You should also employ the help of an expert – both your accountant and/or your potential business contract hire company will be able to assist you, looking at Whole Life Cost (WLC) analyses for all existing and potential vehicles, tax implications and your future requirements.
For more help with determining if your business could benefit from a contract hire agreement, get in touch with Toomey where one of our experienced Account Managers will be happy to help!.