Corporate contract hireconsidered to be "off balance sheet" for accounting purposes
With contract hire, you never own the car fixed (usually monthly) repayments are made and at the end of the contract hire period, the car is returned back to the contract hire company.
Due to the nature of the fixed repayments contract hire is mainly used by Vat-registered businesses and sole traders.
Contract hire is usually considered to be 'off balance sheet' for accounting purposes.
Also, contract hire is beneficial to business users who can reclaim 100% of the Vat charged on the monthly contract hire rental and maintenance payments.