Whilst the use of Lennartz accounting principles has traditionally been associated primarily with charities and other not-for-profit organisations it would be wrong for businesses outside this sector to overlook the proposed changes in VAT legislation. Whilst the changes are not unexpected as HMRC are required to implement the EU VAT technical directive (Council Directive 2009/162/EU) a number of businesses will be required to review how input tax is recovered.
Those particularly affected will be businesses that buy land property boats and aircraft on or after 1 January 2011 and are likely to use those assets partly for non-business purposes. The impact of widening the scope of the Capital Goods Scheme to include non-business VAT will result in a completely new method of calculating recovery of VAT on the cost of assets that are used or intended to be used...
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Home >Articles > HMRC Brief 47/10: is life more simple without Lennartz?
HMRC Brief 47/10: is life more simple without Lennartz?
Jim Pinder on HMRC Brief 47/10
Whilst the use of Lennartz accounting principles has traditionally been associated primarily with charities and other not-for-profit organisations it would be wrong for businesses outside this sector to overlook the proposed changes in VAT legislation. Whilst the changes are not unexpected as HMRC are required to implement the EU VAT technical directive (Council Directive 2009/162/EU) a number of businesses will be required to review how input tax is recovered.
Those particularly affected will be businesses that buy land property boats and aircraft on or after 1 January 2011 and are likely to use those assets partly for non-business purposes. The impact of widening the scope of the Capital Goods Scheme to include non-business VAT will result in a completely new method of calculating recovery of VAT on the cost of assets that are used or intended to be used...
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