If you make supplies of goods or services to a customer but are not paid in full or in part, you may be able to claim a reduction in your VAT bill under the bad debt relief rules.
The Flow Chart - VAT Bad Debt Relief will help you decide if and when you can claim.
Definitions for the flow chart:
You can find detailed information about bad debt relief in HMRC’s corresponding Notice (700/18) at https://www.gov.uk/guidance/relief-from-vat-on-bad-debts-notice-70018
To assist with writing the debt off, use our Notification to a Debtor of Write-off.