Contract hire can be a very savvy way to fund your company vehicles. We take a look at five major considerations to consider before you contract hire.
Are you VAT registered?
The first thing that you need to know about contract hire is that it is a VAT efficient way to fund your company vehicles.
If you are VAT registered, you can claim back 50% of the VAT back on the rental of the car if there is any element of private use involved or 100% back if the car is used only for business and nothing else.
If you contract hire a van, 100% VAT of the monthly rental is reclaimable regardless of overall usage.