Commentary

V7.484 Bad debt relief—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.484 Bad debt relief—planning points to consider

Part V7 Tax planning | Commentary

V7.484 Bad debt relief—planning points to consider

The following planning points should be given consideration.

  1.  

    •     Ensure payment terms are clearly stated on invoices.

  2.  

    •     Ensure credit control procedures include identifying debts which are at least six months overdue.

  3.  

    •     Ensure appropriate paperwork and records are in place to support claims for bad debt relief.

  4.  

    •     Consider the effect of bad debt relief on VAT only invoices in late registration situations.

  5.  

    •     If bad debts are a recurring problem the cash accounting scheme (V7.194) may be appropriate.

  6.  

    •     Consider the bad debt

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