Commentary

V7.162A VAT deregistration—bad debt relief

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.162A VAT deregistration—bad debt relief

Part V7 Tax planning | Commentary

V7.162A VAT deregistration—bad debt relief

A business can claim relief for VAT paid on bad debts after it has deregistered as long as it paid output tax on the sales in question while it was VAT registered, and also meets the conditions for claiming bad debt relief, ie the invoice is more than six months overdue for payment and has been written off in the business accounts. No claim can be made more than four years after the relief became reclaimable.

A claim for bad debt relief is made on Form VAT 427, ie the same form that is used

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