This type of car finance option can also be used for businesses with the cost of hire being offset against taxable profits. There is then the option for the VAT to then be reclaimed. Vehicle usage and the vehicle type determine what level of VAT can be reclaimed. However, a vehicle contract hire is a choice amongst VAT registered companies because of this option. Rental paid on vehicles under &pond;12,000 are fully deductible against corporation tax. Higher priced vehicles only allow for a proportion of the payments to be offset. If a vehicle is partially used for private use, only 50% of the VAT is recoverable. However, vehicle service and maintenance are fully recoverable. Vehicles under contract hire are not recorded as assets on the company balance sheet.
The models of Citroen listed below show cars available for car finance:
C5, Dispatch, Saxo, C4, C3, Xsara Picasso, C1, Relay, C2, C8, Berlingo Multispace, C3 Pluriel, Xsara, Berlingo, Xsara Enterprise, C2 Enterprise,