What are the benefits of Business Contract hire?
The running cost of cars and light commercial vehicles is one of the biggest expenses that many businesses face. Add to that the risk of depreciation, and it’s no surprise that the benefits of business contract hire are very attractive.
The most appealing benefit of business contract hire is that a business can avoid as much as 100% of VAT – provided the car is used 100% for business and not personal travel. If it is used for personal travel then you will be able to avoid 50% of VAT on the finance element of the monthly rental and 100% of VAT on the service element Additionally, the monthly payment can be offset against taxable profits thereby reducing the tax the business pays.
Other benefits include:
- There is no need to arrange to sell the vehicle when a new one is required.
- It is cheaper than ownership in the long term if your business needs to renew vehicles more frequently than every 5 years.
- All maintenance, repair and service costs can be included in the monthly fee (which can be offset against tax).
- Vehicles can be kept fairly new which promotes a successful image of the business.
In addition to these general benefits of business contract hire, with Toomey, our value-added services go the extra mile in ensuring that you get the most cost-effective fleet management solution for your business. These include:
- Contract amendment
- Fixed costs for duration of contract
- Formal Extensions.
- Driver Contact Centre.
- Dedicated Account Management.
- Tailored Solutions for your Business.
Our agreements are built on transparency and integrity, which reflects our philosophy of treating customers and drivers as we would like to be treated.
Talk to us now on 0800 091 4252 for advice, guidance, and a free, no obligation quotation or simply contact us now!.