FAQ
Leasing/Contract Hire
Who owns the vehicle? Finance Company
Who carries the Residual Value Risk? Finance Company
Who carries the Residual Value Risk? Finance Company - assuming maintenance contract is taken
Is the vehicle on or off the Balance Sheet? Off
Typically, how much cash is required up front? 3 months rental in advance
Who arranges delivery and collection of the vehicle? FINANCE COMPANY
Does the Customer own the vehicle at the end of the contract? No
Can the monthly payments be offset in full against Corporation Tax? Yes - 100% of the monthly rentalmay be offset against Corporation Tax. For vehicles costing over £12,000 a proportion is disallowed. 100% of mainteance payments may be fully offset
Assuming some private or home-to-office use of the vehicle, is there any benefit following the August 1st VAT changes? Yes - substantial benefits. Reduced whole life costs of contract hire by £600 - £1000 dependent upon vehicle and contract chosen