Business Car Leasing or BCH

A BHC or Business Contract Hire is a long-term contract allowing a business to lease a car or van. A Business Lease is usually taken out over a 24 to 48-month period, after which the vehicle is returned to the funder.

Business Contract Hire Explained

A Business Contract Hire agreement is very similar to a Personal Contract Hire Agreement or PCH.

Before the contract is agreed upon by a lender a vehicle, annual mileage and total lease term are selected. Once approved and contracts signed the vehicle is then delivered. The initial payment is then made and a fixed monthly fee is paid until the end of the term is reached.

After the business lease term, the vehicle is simply handed back to the lender allowing the business to lease another brand new vehicle.

Please note that at no time during a Business Contract Hire does the business own the vehicle and it is not possible to pay a balloon payment at the end to do so.


VAT and Business Car Leases

If your business is VAT registered then it may be possible to claim back up to 50% of the VAT of the lease under the 50/50 rule. Please note that DreamLease can not give any financial advice. We recommend that before signing up for a business car lease you review any and all tax-related questions with a registered accountant.

Please use the link below to view the UK Government Motoring Expenses Guidance.


Is My Business Eligible for a Business Lease?

There is a high probability that your company will qualify for a business lease deal. Please see below for a list of companies that a commonly eligible to lease a vehicle such as a car or a van through the business.

  • A VAT Registered Business
  • A Limited Company
  • A Private Limited Company (PLC)
  • A Sole Trader
  • A Partnership
  • A Limited Liability Partnership


Documents Required for a Business Lease

If you qualify for a Business Car Lease or BCH you will be required to submit additional information about the business in question. Required details can include the following information.

  • Proof Of Identity
  • Information of any and all Directors
  • Company Details such as Address and Registration Number
  • 3 months Business Bank Statements
  • Company Accounts
  • Net Income
  • VAT Returns