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Vehicle finance leasing services |
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you need full use of a car for a minimum outlay,
plus tax benefits, but do not want eventual ownership,
then consider leasing. We can recover the VAT
on the purchase price of any car to be leased,
so the cost of financing one will be calculated
on the VAT exclusive price. This reduces the cost
of your monthly rentals. Leasing is also a very
flexible option to choose because rentals can
be paid monthly, quarterly, or annually throughout
the lease period (normally between 2 to 4 years).
Rentals can also be tailored to match your business's
cash flow so, for example, you could incorporate
a balloon payment. The car is classed as a company
asset for balance sheet purposes during the agreement
and the rentals can be offset against taxable
profits. |
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If you are VAT registered and it is your intention to
use the car privately, 50% of the VAT payable on the
rentals can be reclaimed. Or, if the car is used exclusively
for business, 100% of the VAT. When the car is sold
at the end of the lease the sale proceeds, less a nominal
sum, will be refunded to you as a rebate of rentals.
This will attract VAT, but if you have only been able
to reclaim 50% of the VAT payable during the agreement,
only 50% of the rebate VAT needs to be accounted for
to HM Customs & Excise.
What
are the potential advantages of a business finance lease? |
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Rental
plan to suit your cash flow |
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Vehicle
sold at end of lease providing a rebate of rentals |
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Tax
efficient - rentals offset against taxable profits |
What
is contract hire leasing? |
Contract
Hire is a method of acquiring and using a vehicle for
a fixed monthly payment, with an agreed time and mileage
where the risks of ownership remain with the lessor..
A full maintenance Contract Hire removes all the everyday
problems associated with company cars including: sourcing
and taxing the vehicle, carrying out all service, maintenance
& repairs.
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Never
owns the vehicle |
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Bears
no risk on interest rates, maintenance and residuals |
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Vehicles
OFF balance sheet |
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Fixed
cost, trouble free motoring |
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Customer
pays total rental plus VAT |
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On
finance element of rental 50% VAT recoverable
if private use of vehicle on non-finance element |
Terms
and conditions apply.
Personal Lending is regulated under the Consumer
Credit Act 1995. |
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Questions? support@finanz.co.uk
Phone: (+0044) 0845 130 0009 Fax: (+0044) 0845 370 0021
©2003-2006 Great British Finance Limited, E&OE. All Rights Reserved.
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