Business Contract Hire

What is Business Contract Hire?

Business Contract Hire (BCH) lets your business run brand-new vehicles for a fixed monthly rental without tying up capital in depreciating assets. Your business chooses the vehicles, contract length and annual mileage; the finance company owns the vehicles and takes the depreciation risk; and at the end of each contract the vehicles are collected free of charge.

It's the way most UK companies fund their vehicles - and for good reason. Costs are predictable, the fleet stays modern and under warranty, and your working capital stays where it belongs: in the business.

The business benefits

• Reclaim VAT. VAT-registered businesses can typically reclaim 100% of the VAT on rentals for vans and cars used exclusively for business, or 50% for cars with any private use. VAT on maintenance elements is usually 100% recoverable.
• Protect cash flow. A modest initial rental and fixed monthly costs instead of large capital outlays - leaving headroom for investment where it earns more.
• Corporation tax relief. Rentals are generally an allowable business expense against taxable profits (restrictions can apply to higher-CO2 cars - your accountant can confirm your position).
• Off balance sheet simplicity. Straightforward accounting and no residual-value risk sitting on your books.
• Low benefit-in-kind on EVs. Electric company cars currently attract very low BIK rates, making an electric company car one of the most tax-efficient perks available. See our electric leasing guide.
• One point of contact. Your account manager handles sourcing, quotes, finance paperwork and delivery scheduling across your whole fleet - saving you serious admin time.

Tax treatment depends on your individual circumstances and may be subject to change. We recommend confirming details with your accountant - we're happy to speak to them directly.

Who can apply?

Business Contract Hire is available to:

• Limited companies and PLCs
• Sole traders and partnerships
• Limited liability partnerships (LLPs)
• Charities, and new-start businesses (subject to the funder's criteria)

Approval is subject to a business credit check by the finance provider. Newer businesses may be asked for additional information such as accounts, bank statements or a director's guarantee - we'll match your application to the funder most likely to approve it, and manage the process for you.

What's included

• Brand-new vehicles to your specification - any make, any model
• Road tax for the contract duration (at the initial rate)
• Full manufacturer's warranty
• Free UK mainland delivery to your premises
• Free collection at contract end
• Optional maintenance packages for fixed-cost servicing, maintenance and tyres across the fleet

From one car to a fleet

Whether you need a single company car, a couple of vans, or a mixed fleet with staggered renewals, we scale with you. We'll keep track of your contract end dates, proactively source replacements in good time, and make sure every renewal is re-tendered across our funder panel so you're never paying last year's price out of habit.