Business Contract hire is a term used in the UK to describe a vehicle operating lease used by a business. Contracts range from 12–60 months and are tailored to the businesses requirements. There is a considerable industry - the contract hire and leasing sector - The UK contract hire & leasing industry is largely driven by the UK's tendency for company funded vehicles for business - or perks. Contract hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element.