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If
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. 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.
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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 |
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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 |
"Clients
should always ensure that they take appropriate authorised
investment advice before entering any transaction"
Corporate Angels Ltd works closely with a number of leading
lenders in the provision of financial quotations. We will
pass your quotation request to a bank, lender or broker who
will provide you with a detailed quotation. The information
we collectand pass on will not be used in conjunction with
any other purposes except for the provision of a quote unless
instructed to do so by yourselves. |
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