Van leasing

Just why is van leasing so popular with businesses?restrictions on the amount of mileage you can choose
Precisely what additional benefits does a companyto do each year.
realise when compared with the traditional vanFor business owners that are not registered for Value
ownership?Added Tax and would like to have the use of a new
For companies registered for VAT, contract hire isvehicle and eventually take ownership of it, then lease
very tax efficient. Initial outlay is kept to a minimumpurchase may be a very good option for you.
freeing up additional funding for marketing orA van leasing agreement can be set up whereby
recruitment of additional personnel to help drive theownership of the van transfers to you, your company
business forward.or your business at the end of the lease period in
With Lease 4Less, for example, you can even get thereturn for what is sometimes called a “balloon”
vehicle maintenance included in the agreement. Thepayment. This balloon payment is calculated based on
single monthly rental costs are also recognised bythe anticipated market value of your van at the end of
HMRC as a legitimate business expense and areyour van leasing agreement.
therefore tax deductible throughout the term.It is clear, then, that the multiple benefits of van leasing
It is also worth mentioning at this time that contract hireare tangible. Consider them more carefully and make
agreements usually restrict the amount of annualyour informed decision. You might reflect that it is more
mileage before you become liable for additional difficult to think of a list of persuasive drawbacks
payments so be sure to check this out before enteringassociated with van leasing. Van leasing is not perfect
any agreement.for all businesses, but it is a good solution for many
As a van owner, you would not of course, have anybusinesses, depending on their specific context.