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