Business Contract Purchase
Business Contract Purchase is most suitable for a company which is exempt or partially exempt from VAT, as the VAT on the monthly payments is not recoverable and is treated by the Inland Revenue as a purchase. The interest and the service element of each payment is fully allowable against taxable profit.
Business Contract Purchase also enables a company to run its fleet of vehicles at a fixed monthly cost. Contract periods are available from 2 to 5 years, and the longer the lease term, the lower the cost of the monthly payment. The most common contract term is 3 years, as this is the length of most manufacturers’ warranty period.
The monthly payment is determined by many factors, including the capital cost of the vehicle, the estimated resale (residual) value, the contract term, and the mileage allowance on the contract.
Features of Business Purchase
- Improved cash flow
- No depreciation risks
- Accurate monthly budgeting
- Fixed interest rate
- The interest and service elements of each payment is fully allowable against taxable profit
- Writing down allowance of 20% (10% if Co2 is above 160g/km)
- Is treated by the Inland Revenue as a purchase
Several options are available on a Business Contract Purchase to allow companies to accurately budget throughout the lease period. These include a maintenance option, which covers all servicing, routine maintenance and replacement tyres. For more information regarding additional products and services visit our Maintenance page.
At the end of the contract period the company has 2 options:
1. They can hand the vehicle back (collection is usually free of charge)
2. They can purchase the vehicle.
The purchase price is determined at the start of the contract, and is a guaranteed minimum value
The sales team at Contract Hire UK understand and appreciate that each organisation’s requirements are different. Their experience ensures you are offered a package that provides the best solution for your company.
For more information regarding Tax implications for both Companies and Employees visit our Taxation pages.
To discuss your requirements in more detail, or if you have any queries regarding any of this information, please call us now on 01653 604300
Customer Testimonials
“Thank you for yet another efficient delivery. The 2 cars arrived as promised and we are very happy with them. We are very pleased with the service and will continue to use you guys for our future car needs.”
Mr S Dodds
“Our congratulations to contracthireuk.co.uk on reaching this milestone (20 Years Trading). In a very competitive market, carleasinguk.com have remained very cost effective and have managed to retain a personal touch sadly missing in this digital age.”
Mr L Maclachlan
“I wanted to drop you a quick note to say thanks for the prompt and efficient way you have handled the order and delivery of my new car in a short space of time. I am delighted with the car and I hope to have dealings with you again in 3 years time.”
Mr M Wood
“We would like to express our thanks once again for another smooth delivery for our latest fleet vehicle. Everything was expertly handled from start to finish, as usual. Many thanks.”
Mrs T Williams
“We have just taken delivery of our latest edition to our fleet and I can't thank the team at contracthireuk.co.uk enough for the superb service levels that they provided to us once again. It is a refreshing change to have a company look after your fleet in such a well organized manner.”
Mrs S Iqbal
“I just wanted to say thank you for sourcing the right car and finance package for me. The car was delivered a week ago, and I know it wasn't the most straight forward deal to arrange. Suffice to say I am delighted with it; its exactly what I wanted.”
Mr M Bilney
“I wanted to thank you for all of your help. You are very easy to deal with and nothing was too much trouble. Keep the offers coming as we have more cars due early next year.”
Mrs J Maylor
“Many Thanks for your assistance in selecting the correct car after much searching on your behalf. The car is outstanding and the delivery was seamless. All in all, and encouraging experience”
Mr W Henry
“Thank you for all of your hard work in getting this sorted. I have been very impressed with your efficiency and willingness to help, and will have no hesitation in recommending your service to others.”
Mr C Rich
“I would like to take this opportunity to thank you for the smooth and efficient manner in dealing with our new vehicle. I have used a number of companies over the past few years, and to be honest I was very surprised by the level of service we received from yourselves, which from my experience is second to none. Every person I have spoken with have been extremely efficient and a pleasure to deal with.”
Mr M Furness
“I would like to thank contracthireuk.co.uk for their professional advice and committed customer service. Our fleet of company cars is increasing significantly over the next few months, so we will be in touch.”
Mr A Strickland
“I have recently placed my business for a new car through your company. I originally chose contracthireuk.co.uk because you provided me with the most competitive quote, but since then I have been hugely impressed with the outstanding customer care I have received.”
Mr M Wilton
Why contracthireuk.co.uk
are better than the rest
- Trading for over 20 Years
- Dedicated account managers
- Impartial funding advice
- Comprehensive maintenance packages
- Bespoke vehicle sourcing solutions
- Continual support throughout the contract
For all enquiries or further information, please call us now on 01653 604300
