Contract Hire

 

Where the hirer wants to budget with total accuracy and confidence, contract hire extends an operating lease to include full maintenance and other services within an inclusive rental.

 

For example,

contract hire can include full servicing to manufacturers schedules;

maintenance including replacement of seasonal wearing parts;

insurance and the provision of replacement machines in the event of breakdowns that cannot be rectified within a specified time frame.

 

Again, the tax treatment is the same as operating lease although all risks ( excluding accidental damage and any items specified in advance ) lie fully with the lessor.

 

Benefits :

Identical to operating lease but with the added advantage of extremely accurate full cost budgeting.