Clean It Up

UK General Cleaning Forum => General Cleaning Forum => Topic started by: cavanagh_matthew@y on October 10, 2006, 09:41:45 pm

Title: contract hire or buy
Post by: cavanagh_matthew@y on October 10, 2006, 09:41:45 pm

hi everyone,
could anyone tell me is it better to get a commercial vehicle on contract hire or just buy one for tax purposes?

cheers guys

Title: Re: contract hire or buy
Post by: Robert Parry on October 11, 2006, 09:29:35 am

Leasing is normally the most tax efficient.

Regards,

Rob

Title: Re: contract hire or buy
Post by: clifford123 on October 11, 2006, 05:00:51 pm

if you're leasing make sure you read the small print very very carefully. if for some reason you can't keep up the payments, they'll take you to the cleaners. a friend of mine had to send the vehicle back after one year. their now demanding 3 further years payments and no van... :'( :'(
dave

Title: Re: contract hire or buy
Post by: Robert Parry on October 11, 2006, 05:07:11 pm

Ouch!!!!!

Seems very heavy handed, but yes there are horror stories out there, however, bank the money first in a high interest account, and make the payments from that, you get the tax benefits, little risk etc.

If you purchased the vehicle and could not keep up the payments, you would still be liable anyway, so no real difference there, same story goes for anything on credit really.

By the by, you dont have to lease a brand new vehicle, you can lease one a year or two old as well.

Regards,

Rob