Commentary

V7.479 The process for claiming bad debt relief

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.479 The process for claiming bad debt relief

Part V7 Tax planning | Commentary

V7.479 The process for claiming bad debt relief

The process for claiming VAT bad debt relief is to include the amount of the VAT claimed in Box 4 of the VAT return for the period in which the conditions for making the claim are first met or a later VAT return. (HMRC Notice 700/18/18, para 2.4).

Most businesses will want to claim bad debt relief as soon as possible so it is important that credit control procedures include identifying debts which are at least six months overdue.

The general rule is that bad debt relief must be claimed within four years

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