Your new bookkeeper has been looking over your records and says HMRC owes you VAT in respect of bad debt relief for overdue customer bills. This conflicts with advice you previously received. So
who’s right?
Published 04.03.2015
Your new bookkeeper has found a batch of sales invoices, issued a year ago soon after you registered, that didn’t include VAT. Can you now issue an extra invoice to correct the VAT error and how do
you handle the situation with HMRC?
Published 09.03.2021
If a customer doesn’t pay your bill you can get back any VAT on this that you’ve paid over to HMRC. But where do you stand if you’re withholding payment to a supplier because you’re in dispute with
them?
Published 16.07.2013
You’re worried that one of your customers is about to go under owing you a lot of money. You’ve agreed to write off part of the debt if the balance is paid immediately. How soon can you get a refund
of the VAT you’ve paid on the bad debt?
Published 21.09.2022
The economic downturn could mean your business will see an increase in bad debts. But the silver lining could be a reduction in your VAT bills. How does this work and does the recent change in the
VAT rate mean you get less back?
Published 12.02.2009
Your bookkeeper has found a batch of purchase invoices on which VAT hasn’t been reclaimed. They date back a few years and you think that it may be too late to reclaim the VAT. What is and isn’t
allowed?
Published 22.06.2020
If a customer fails to pay your invoice you can, after six months, claim a refund of the corresponding VAT you accounted for to HMRC. But if you use the flat rate scheme a further adjustment might be
needed to your profits. Why and what is it?
Published 12.12.2019
Despite vetting your account customers, one of them has done a runner leaving your invoices unpaid. Do the bad debt rules apply meaning you must wait to recover the VAT you’ve paid to HMRC or can you
reclaim sooner?
Published 18.02.2014
Even the VATman recognises that bad debts are an inescapable part of business life. But at what stage in this current credit crunch will he allow you to get the VAT back on your bad debt customers?
Published 03.07.2008
Even the VATman recognises that bad debts are an inescapable part of business life. But at what stage does he allow you to get the VAT back you’ve already paid on the debt?
Published 11.05.2006