Contract Hire

[Tom D]

Annual meeting with the accountant today, I told her I was thinking of changing the van this year. She suggested contract hire as its more tax efficient.

Anyone use this? Pros and cons?

Any thoughts appreciated.

[Kev Stephenson]

Any damage (chips, scratches, dirty interior, etc) is chargable and in my experience (with cars at least) they expect them back in near mint condition.

[Bald Ed]

Annual meeting with the accountant today, I told her I was thinking of changing the van this year. She suggested contract hire as its more tax efficient.

Anyone use this? Pros and cons?

Any thoughts appreciated.

 

Just a quick note, when I spoke with my Accountant earlier this year he said that if you are looking to replace capital plant or vehicles, this financial year is the time to buy as there are additional tax benefits in place at present that will give you higher tax relief.

 

I am not an accountatnt and am not questioning your accountant's advise but it may be worth a look before you make a decision on how you replace eqpt.

[niftysteve]

my accountant always suggests hire purchase as the option once payed its yours interest is tax deductable too i think

he s mentioned to me about changing my truck

change in march he said so i can get all the tax benefits in this financial year

[Stephen Blair]

i think all the options are quite similar, but watch out for small print. also depends on kit. if it has crazy depreciation keep your money in the bank, if it is brand new then the tax allowance is excellent.

i am not paying tax this year because i bought a lot of kit last year, and you can spread the capital input onto next year. I alwats run accountants ideas past mr tax and vat man just to keep myself right. If you call them they are always very helpful. and you dont want to fall out with those 2