SO, you’re 99.9 per cent sure you want to lease your next SME company car through contract hire.

But, you’re unsure what tax relief you will receive. Well, we’ve had a look with our friends at Network and can bring you all the answers to make that important final decision.

Read on…

Monthly payments offset against taxable profits
Go the contract hire route and your monthly payments can be offset against taxable profits, thus reducing the amount of tax your business will pay.

It improves the financial ratio for your business
Unlike an SME company car financed on hire purchase, which is treated as an asset as soon as it’s delivered, if you choose contract hire, it is classified as “off balance sheet”, thus improving the financials for a business.

100% of the VAT can be reclaimed
Are you or your business VAT registered? Yes? Well, as long as the vehicle is exclusively used for business, you can reclaim 100% of the VAT on the contract. Planning on using the vehicle for some personal use? Well that won’t stop a VAT claim. In fact, 50% of the finance element is still reclaimable.