Tax implications with contract hire

Hiring vehicles for business use can be a cost-effective way to manage your company's motoring needs. One of the savings you can take into account is on tax - here are some examples of the ways you could benefit.

Contract Hire provides you with a new car for a set amount of time and with fixed monthly payments. As a business, you'll be able to claim back VAT on the purchase price of the vehicle. 100 percent of VAT can be reclaimed if you're VAT registered and the car is used exclusively for business.

Under a hire purchase agreement, the car is considered as an asset to your company. This means that any depreciation in the model's value can potentially be offset against your taxable profits. Repayments made on your vehicle may also come under this heading, and tax relief could be available on interest charges accrued during your hire term. 

As terms and conditions, tax implications and your options may vary depending on the purchase agreement you choose, please contact us for advice before selecting a business car. We can advise on your best options and whether Contract Hire is most suitable for you.

The dedicated business team at all of our Lookers dealerships is there to support you and your company. As the fleet manager or decision maker, simply get in touch today to discuss your requirements.

I have an account

I don't have an account

You need an account before you can save searches. It takes less than a minute to register.

Register Now
I have an account

I don't have an account

You need an account before you can save vehicles. It takes less than a minute to register.

Register Now

Don't worry!

We're taking you to our partner site, everything is fine.

OK, got it

You saved a vehicle

You opted to save a vehicle to your garage. We will keep you up to date if anything changes to the status of the vehicles.

You can find your saved vehicles here:

Saved vehicle icon
Got it
Monthly Vehicle Variant Save
(View full finance example)

Example monthly payment

Advance payment Vehicle Variant Save

 

Brand new - order now
This vehicle has been reserved
This vehicle is now sold
This vehicle is no longer available

We have available variants
Brand new - order now
This vehicle has been reserved
This vehicle is now sold
This vehicle is no longer available

Available from   or  /month (Rep)

0

Used s

0

New s

What Car? Logo
*model highest rating

( )