A simple, tax-efficient way to lease vehicles without ownership risks.
Contract Hire gives your business new vehicles, fixed costs, and fewer admin headaches.
Flexible leasing for businesses – with predictable costs, minimal hassle, and no ownership risk.
Business Contract Hire (also known as Operating Lease) is a long-term rental agreement, typically between 12 and 60 months, tailored to your business needs.
Business Contract Hire offers a cost-effective and low-risk way to run any number of vehicles, without tying up your capital.
Minimal capital outlay
Fixed monthly payments – ideal for budgeting
Improved cash flow
Fixed interest rates for the duration
Reduced in-house administration
Road fund licence (vehicle excise duty) included for the contract term
Optional maintenance package
Optional breakdown rescue cover
Optional replacement vehicle in case of breakdown
Optional GAP insurance – covers the shortfall if your vehicle is written off
You also benefit from ongoing advice and support throughout your agreement.
As with any finance product, it’s important to understand the terms:
Early termination fees may apply
Excess mileage charges if you exceed the agreed allowance
You must maintain the vehicle to return standards – damage beyond 'Fair Wear and Tear' may result in charges
Fully comprehensive insurance is required throughout
There is no option to purchase the vehicle – you hand it back at the end
Contract Hire is a popular choice for VAT-registered businesses due to tax efficiencies:
The leasing company reclaims VAT on the purchase, helping reduce your monthly rentals (rentals are plus VAT)
You can usually reclaim:
50% of the VAT on cars used for business
100% of the VAT on commercial vehicles (if no private use)
100% of VAT on maintenance charges
Contract Hire typically qualifies as off-balance-sheet funding, which may improve your gearing ratio and enhance future borrowing capacity (subject to current accounting rules)
One of the biggest advantages? You don't carry the risk of depreciation or disposal – the leasing company underwrites the vehicle's future value.