Commentary

V7.472 How much VAT bad debt relief can be claimed?

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.472 How much VAT bad debt relief can be claimed?

Part V7 Tax planning | Commentary

V7.472 How much VAT bad debt relief can be claimed?

In many situations the amount of bad debt relief that can be claimed is relatively straightforward. See Example 4.

Example 4

John the accountant issued an invoice for £600 plus VAT of £120 to a personal tax client on 12 November. No payment whatsoever has been received and all of the conditions for claiming bad debt relief have been met. VAT bad debt relief of £120 can be claimed on the VAT return for the quarter to 30 June the following year in relation to this invoice.

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