Commentary

V7.482 Can I issue a credit note instead of claiming bad debt relief?

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.482 Can I issue a credit note instead of claiming bad debt relief?

Part V7 Tax planning | Commentary

V7.482 Can I issue a credit note instead of claiming bad debt relief?

The short answer is no. To quote an extract from paragraph 5.6 of HMRC Notice 700/18/18:

“You may not issue a credit note simply because your customer has not paid you for your supply. You may only issue a credit note where there is a genuine mistake or overcharge or an agreed reduction in the value of your supply.”

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