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Post Info TOPIC: Hire Purchase or Contract Hire??
rachel_mclean


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Hire Purchase or Contract Hire??
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Hi

If you were to buy a van 100% business use which way of buying (or borrowing) a van has the most tax advantages. This is for a vat registered business.

Hire Purchase or Contract Hire. I 've just been looking at this link.

http://www.contracthireandleasing.com/guides/contract

Can anyone tell me if I have this right:

Hire Purchase

Claim 100% of the cost of the car as a capital allowance over time or AIA.

Claim annually the interest of finance as an expenses.

So basically can claim the full cost of the car over-time.

 

Contract Purchase

(I don't know much about this so I may be completely out)

'This also makes contract hire popular among VAT-registered companies who can reclaim 50% of the total payments made and 100% of the maintenance package costs. Hire rental tax allowances can also be applied.'

So to me this means that 100% of the costs will not be able to be claimed as Hire Puchase

 

Thanks

Rachel



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