Author Login | Popular Articles | RSS Feeds | Sitemap

Home | Uncategorized


How Contract Hire Can Save Your Company Money

By: Shaun Parker

Contract Hire is a method of renting a vehicle for personal or business purposes. It differs from standard vehicle hire in that the vehicle is leased over a longer period. Contract Hire is offered on 12 to 48 month contracts but typically lasts 3 years.

With Contract Hire a finance company supplies the vehicle and takes full responsibility for its depreciation, funding costs and administration. The finance company calculate a monthly rental price and usually demand a deposit of three months of the monthly rental value.

The lessor can request a contract that includes maintenance this only leaves insurance and fuel to be considered. The fixed pre-determined stream of rental payments makes it easy for the lesor to calculate their monthly outgoings.

Contract Hire is becoming increasingly popular in the UK. This is mostly due to the tendancy for company funded vehicles. It is particularly popular with businesses because it allows for accurate monthly budgeting, minimal running costs and the lesee does not have to suffer value depreciation they would experience if they bought a vehicle.

This method of hire also allows a business to update its vehicles regularly. This can be beneficial for maintaining the status of a company or, if being used as a company car, be a popular perk for its employees. Of course these benefits also apply to people using Contract Hire to hire a vehicle for personal use.

Contract Hire can appeal to a business as it is an extremely tax efficient method of funding a business vehicle. Full tax relief is available on cars worth up to 12,000 GBP. If your business is registered for VAT 100 percent of the VAT payable on the finance element of the rentals may be recovered.

If the vehicle is being used for personal use then only 50 percent if the VAT payable on the finance element of the rentals may be recovered. The fact that rentals may be offset against taxable profits make it a very popular option for a business. It can help improve the cash flow and tax position of your business.

Indeed 40 percent of V.A.T Registered companies choose this funding method. The UK industry is considered the largest best managed in the world. The industry representative body BVRLA (British Vehicle Rental and Leasing Association) has nearly 2 million vehicles in its management.

The industry has seen steady growth since the first statistics were published in 1990. More than 50 companies now offer this type of supply. Fleet statistics are reviewed and published annually by EMAP.

Additional benefits of Contract Hire include; minimal capital expenditure (you do not have to pay for the vehicle) reduced administration (administration is minimal) and no disposal worries (when the agreement ends the vehicle remains the property of the lessor and never becomes property of the lesee). Contract Hire is available to Individuals, Sole Traders, Partnerships and Ltd Companies.

Article Source: http://www.articlesnatch.com

About the Author:
Shaun Parker is an expert on contract hire and to out more, please visit Amber Vehicle Solutions

| Print | Ezine Ready | |

Please Rate this Article

Recent UnCategorized Articles

  • Effective Self-Defense Weapons By: Joy Fender - In the midst of an unexpected situation when someone wants to harm you, your first instinct is to protect yourself from any danger that this person is planning to do. So when someone is threatening your life, you have to do anything possible to get yourself out of danger. To avoid any situations that could risk your life, you need to follow the exact things that experts advise everyone to follow.
    Tags: self defense, non-lethal weapons, pepper spray, personal alarm, stun guns
  • 3 Ways to Increase Fundraising Profits With Popcorn Machines By: Christine Harrell - Popcorn machines are a fantastic way to raise money for an event or non-profit organization. The tantalizing smell of fresh popcorn popping is fantastic advertising all on its own, attracting customers from a great distance. However, many other things can be done to bring people to the popcorn machine and increase the amount of donations to help meet fundraising goals and spread the word about your organization.
    Tags: popcorn machine
  • Drew Miles Reviews Ways to Save on Your Taxes By: drew miles - Hi, My name is Drew Miles, and I would like to share with you some ways your business can save money on taxes every year, just by following some simple steps. It’s that “Wonderful” time of year again! You ask, “What time is it?” IT’S TAX TIME! When operating your own business most of us are always busy building the company, and it’s the little things that get overlooked every year.
    Tags: tax, tax deductions, drew miles, deduction, tax write-offs
  • The Awesome Power Of Gratitude By: Jules Hawk - The expression of Gratitude has the capacity to transform your life, to develop the connection with Divinity, with your true inner self and the profound power within, to inspire, and to bring forth bounty and joy into your life. By establishing the habit of daily reflection on Gratitude for the blessings in your life, you will find you draw more and more of the positive and uplifting energy, emotion and events into your sphere.
    Tags: gratitude, grateful, manifestation, manifesting, prosperity
  • Choosing The Right Scooter Insurance By: Anna Stenning - Riding a scooter is the perfect way to start your path into riding a motorcycle, however, it is still useful to gain experience alongside someone who has had years of experience riding a motorcycle. The best way of learning is to learn from a proper qualified instructor who can teach you the correct ways of learning as opposed to teaching you bad habits that others may indirectly teach you.
    Tags: scooter insurance
  • Little Known Ways To Stop Foreclosure By: Ranju Kumar - If you are in the same predicament as many people are today, you may be waiting for the banker to show up and tell you he is foreclosing on your property. It does not literally happen that way but the results are the same. If you are facing the prospect of losing your home and are trying to figure out the best way to avoid foreclosure, there are options.
    Tags: stop foreclosure, foreclosures, avoid foreclosure, stop short sales, prevent foreclosure
  • Internet Marketing Ideas for the Work at Home Mom By: Ranju Kumar - Many work at home Moms are consistently searching for internet marketing ideas that can assist them in making their business successful. While marketing by means of direct mail, telephone calls, business cards, fliers, and advertisements in local newspapers and magazines did seem at least a little appealing at one point in time, marketing on the internet is so much broader, easier, and overall, less expensive.
    Tags: abunza, affiliate marketing, internet marketing, business opportunity, work at home
  • Yeast Treatment - There Is Something You Can Do For An Effective Yeast Treatment By: Tom Moody - At any stage in a woman’s life there is a possibility that she will need to undergo some form of treatment to help deal with a yeast infection problem. What is important to note is that there are plenty of yeast treatment available for dealing with this type of infection and what one a woman uses will largely depend on the severity of theirs.
    Tags: yeast treatment, yeast infection treatment, yeast infection treatment, treatment for yeast infection
  • Why New Houses UK Schemes Can Help First Time Buyers By: Anna Stenning - As a UK citizen, I want to eventually be able to afford my own detached house with a garden and a lovely front lawn completed with white picket fences. However, in this day and age one cannot but dream and find that the dream will not come as a reality if the economy does not change, benefiting us working class individuals rather than making it virtually impossible to work our way out of debts.
    Tags: new houses uk
  • Mp3 Speakers Have Opened New Vistas For The Music Industry By: Theodore Cartman - Mp3 speakers are an integral part of the players. The speakers make your music listening experience a unique one. Mp3 speakers are absolutely essential for the music lovers and for the non-music lovers it is even more important since this experience would transform them into music lovers. There are several companies in the electronics market, which sell mp3 speakers with the mp3 players.
    Tags: mp3 speakers, logitech speakers, portable speakers, speakers, mp3 players

Today's Hot Articles

Search Ebay

Still can't find what you are looking for? Search for it!


Submit Your link to the Open Link Directory Project

Copyright 2005-2008 MJE Sales, LLC. All Rights Reserved.
Proud member of the ArticleCkr Search Network Search Network!
ArticleSnatch.com is free for both publishers and authors to use and is supported entirely from advertising revenue.
Use of our service is protected by our Privacy Policy and Terms of Service.