On November 15th, we laced up our dancing shoes, fired up the grill, and came together as a community for an unforgettable evening of fun and music. Our charity Barn Dance was an incredible success, raising an impressive £2,350 for the Children...
It is very commom for a smaller business to have assets which have been acquired which are used for both business and private use.
Traditionally, this could be dealt with either by claiming only the percentage of the input VAT which corresponded to the percentage of business use or by claiming all the input VAT 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 latter method is called ‘Lennartz accounting’, after the VAT case that established the principle.
Following a Dutch VAT case, however, the use of Lennartz accounting has been considerably restricted. HMRC 's current guidance on the correct VAT treatment in such cases is updated periodically.
Following Brexit, it is almost certain that VAT legislation will change significantly, although how such changes will manifest themselves is not yet known