|
Hire Purchase Explained
Hire Purchase is a simple and popular way of purchasing a vehicle, with worthwhile tax advantages for businesses. If ownership is a priority, this is an extremely cost effective method of borrowing.
Cashflow Benefits
Paying an initial deposit, calculated as a percentage of the total cost this is followed by fixed monthly repayments; which allows you to budget monthly expenditure precisely in advance.
Tax Implications
Business users may claim tax relief on the interest charged. The vehicle is also classified as an asset, which allows it to be written down against taxable profits by 25% or £3000 (maximum per annum).
Who Owns the Vehicle at the End of the Agreement?
At the end of the agreement, which may be from 1 to 5 years, you become the outright owner of the vehicle.
UEG (Automotives) are part of The United Earth Group of Companies. Copyright (c) 2008 All Rights Reserved. |
