Latest News

Swiss Bank Accounts - 6,000 Letters on the Way Swiss Bank Accounts - 6,000 Letters on the Way
Court Refuses HMRC Right of Appeal in Tax Avoidance Case Court Refuses HMRC Right of Appeal in Tax Avoidance Case
Salary Sacrifice - VAT Changes Salary Sacrifice - VAT Changes
Integrating the Operation of Income Tax and NICs Integrating the Operation of Income Tax and NICs
No Time to Pay for 'Tax Planned' Companies No Time to Pay for 'Tax Planned' Companies
AWP Refunds Not Safe Yet! AWP Refunds Not Safe Yet!
HMRC to Target Restaurants HMRC to Target Restaurants
Claiming Foreign VAT Claiming Foreign VAT
Supreme Court Backs HMRC in Tax Avoidance Case Supreme Court Backs HMRC in Tax Avoidance Case
Statistically Invalid Estimate Still Enforceable, Rules Tribunal Statistically Invalid Estimate Still Enforceable, Rules Tribunal

Business Assets with Private Use - HMRC issues VAT update

Following a Dutch VAT case which has significantly restricted the use of 'Lennartz' accounting, HM Revenue and Customs (HMRC) have issued a new brief regarding its use.

Lennartz accounting (named after the VAT case which established the principle) involves claiming of all the input VAT on business assets with some element of private use, and then making a VAT charge (i.e. adding to the output VAT payable) for the private use on an ‘as you go’ basis. This is an alternative to the traditional method of accounting for VAT on such assets, which is to claim only the percentage of the input VAT corresponding to the percentage of business use.

For advice on all tax matters, contact us.
View my profile
David Saunders
Partner
T: 01743 237711 (DDI)
E:  
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.