Commentary

V7.476 Bad debt relief—part payment of a number of invoices

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.476 Bad debt relief—part payment of a number of invoices

Part V7 Tax planning | Commentary

V7.476 Bad debt relief—part payment of a number of invoices

Sometimes a customer will have an account with a supplier and make payments to the supplier from time to time, despite the supplier making it clear when payment for each invoice is due. At any one time there may be several invoices outstanding and the supplier may wonder which invoice(s) the supplier intends to settle when he makes a payment.

For VAT bad debt relief purposes the general rule is that a payment should be allocated to older invoices first unless the customer makes it clear that the payment relates to a particular invoice and that invoice is paid in full.

For VAT bad debt relief purposes the general rule is that a payment should be allocated to older invoices first unless the customer makes it

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial