Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts are available from Gates Leasing ranging from 12 to 60 months and are tailored to meet the businesses requirements.
The Contract Hire Company reclaims the VAT on the original purchase, which reduces your monthly rentals (which are + VAT). Contract Hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use, no exempt turnover and not being on the Flat Rate VAT Scheme).
On contracts with maintenance, the VAT on the service element is 100% recoverable. One of the major benefits is that there are no disposal worries as the future value is underwritten by the leasing company. Another benefit of Contract Hire is that it is generally 'off balance sheet funding' (subject to legislation change) which means it can improve your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 01279 216326
E: leasing@gates.co.uk
Gates Leasing Limited
295 Stansted Road
Bishop's Stortford
Hertfordshire
United Kingdom
CM23 2BT
Gates Leasing Limited are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 751528
Registered in England & Wales with company number : 05259226 | Data Protection No : Z2520843 | VAT No : 241 7207 32
Registered Office : Gates Corner, Edinburgh Way, Harlow, Essex, CM20 2EG
Copyright © 2019 Gates Leasing Limited, All rights reserved.